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Impact of Compensation Systems Attributes on

Teacher's Performance with Associated


Variables in Universities of Pakistan

By

Rana Nadir Idrees

CIIT/FA12-PMS-007/LHR

PhD Thesis

In

Management Sciences

COMSATS University Islamabad


Lahore Campus - Pakistan

Fall, 2018
COMSATS University Islamabad

Impact of Compensation Systems Attributes on


Teacher's Performance with Associated Variables
in Universities of Pakistan

A Thesis Presented to

COMSATS University Islamabad, Lahore Campus

In partial fulfillment
of the requirement for the degree of

PhD (Management Sciences)

By

Rana Nadir Idrees


CIIT/FA12-PMS-007/LHR

Fall, 2018

ii
Impact of Compensation Systems Attributes on
Teacher's Performance with Associated Variables in
Universities of Pakistan

A Post Graduate Thesis submitted to the Department of Management Sciences


as partial fulfillment of the requirement for the award of degree of PhD in
Management Sciences.

Name Registration Number

Rana Nadir Idrees CIIT/FA12-PMS-007/LHR

Supervisor

Dr. Syed Imran Haider Naqvi


Associate Professor,
Department of Management Sciences
COMSATS University Islamabad, Lahore Campus

Co-Supervisor
Dr. Asma Imran

Assistant Professor,

Department of Management Sciences

COMSATS University Islamabad, Lahore Campus

iii
Certificate of Approval

This is to certify that the research work presented in this thesis, entitled “Impact
of Compensation Systems Attributes on Teacher's Performance with Associated
Variables in Universities of Pakistan” was conducted by Mr. Rana Nadir Idrees,
CIIT/FA12-PMS-007/LHR, under the supervision of Dr. Syed Imran Haider
Naqvi. No part of this thesis has been submitted anywhere else for any other
degree. This thesis is submitted to the Department of Management Sciences,
COMSATS University Islamabad, Lahore Campus in the partial fulfillment of
the requirement for the degree of Doctor of Philosophy in the field of
Management Sciences.

Student Name: Rana Nadir Idrees Signature: ___________________

Examination Committee:

External Examiner 1: Name External Examiner 1: Name


(Designation & Office Address) (Designation & Office address)
------------------------------------------ ----------------------------------------
------------------------------------------ ----------------------------------------
------------------------------------------ ----------------------------------------

____________________________ ___________________________

Dr. Syed Imran Haider Naqvi Dr. Muhammad Amir Rashid


Supervisor, HoD,
Department of Management Sciences Department of Management Sciences
COMSATS University Islamabad COMSATS University Islamabad
Lahore Campus Lahore Campus

____________________________ ___________________________

Dr. Samina Nawab Prof. Dr. Khalid Riaz


Chairperson, Dean,
Department of Management Sciences, Faculty of Business Administration,
COMSATS University Islamabad COMSATS University Islamabad

iv
Author’s Declaration

I, Rana Nadir Idrees, CIIT/FA12-PMS-007/LHR, hereby state that my PhD thesis titled
“Impact of Compensation Systems Attributes on Teacher's Performance with
Associated Variables in Universities of Pakistan”, is my own work and has not been
submitted previously by me for taking any degree from this University, i.e. COMSATS
University Islamabad or anywhere else in the country/world.

At any time if my statement is found to be incorrect even after I graduate, the university

has the right to withdraw my PhD degree.

Date: ____________________
_____________________

Rana Nadir Idrees


CIIT/FA12-PMS-007/LHR

v
Plagiarism Undertaking

I solemnly declare that research work presented in the thesis titled, “Impact of
Compensation Systems Attributes on Teacher's Performance with Associated Variables
in Universities of Pakistan” is solely my research work with no significant contribution
from any other person. Small contribution/help wherever taken has been duly
acknowledged and that complete thesis has been written by me.

I understand the zero tolerance policy of the HEC and COMSATS University
Islamabad towards plagiarism. Therefore, I as an author of the above titled thesis
declare that no portion of my thesis has been plagiarized and any material used as
reference is properly referred/cited.

I undertake that if I am found guilty of any formal plagiarism in the above titled thesis
even after award of PhD Degree, the University reserves the rights to withdraw/revoke
my PhD degree and that HEC and the university has the right to publish my name on
the HEC/university website on which names of students are placed who submitted
plagiarized thesis.

Date: ___________

______________________
Rana Nadir Idrees
CIIT/FA12-PMS-007/LHR

vi
Certificate

It is certified that Rana Nadir Idrees, CIIT/FA12-PMS-007/LHR has carried all the
work related to thesis under my supervision at Department of Management Sciences,
COMSATS University Islamabad, Lahore Campus and the work fulfills the
requirement for award of PhD degree.

Date: ____________

Supervisor:

_________________________
Dr. Syed Imran Haider Naqvi
Associate Professor
Department of Management Sciences
Head of Department:

_____________________________
Dr. Muhammad Amir Rashid
Department of Management Sciences

vii
DEDICATION

To all who have supported and helped throughout my


thesis formulation, especially Dr. Imran Haider Naqvi, my
mentor and supervisor for accomplishing my research
skills and ability to transform raw thoughts into significant
research and for extending his kind and valuable guidance
in making this study memorable and gratifying.

viii
ACKNOWLEDGEMENTS

Thanks to and all praises for Allah Almighty, the most merciful and beneficent. He
granted the scholar with the courage and strength needed to undertake this
challenging mission.
I am indebted to my thesis supervisor Dr. Syed Imran Haider Naqvi, without whose
leadership this study may not have been concluded within the desired period.
I am also indebted to Dr. Asma Imran and Dr. Muhammad Ismail, who provided
their unconditional and enthusiastic assistance, as well as professional judgement
for the untidy end of this study.
Thanks to all those university teachers who have spared their precious time and
participated in the research study, the outcome of which has helped me to realize
the objectives of this research.
I have the utmost appreciation for the helping, caring, and facilitating attitude
demonstrated by my beloved parents, wife, wonderful kids (Pariza and Faiq), and
siblings during the course of this research.
I also extend my gratitude to my seniors and fellow researchers for the guidance
and support they provided me with from time to time.
Last but not the least, I would like to give special thanks to the leadership of the
Sahiwal and Lahore Campus, respective Head of the Department of Management
Sciences, my colleagues and the support staff (including those stationed at the
Lahore Campus), who extended their whole-hearted cooperation and support to me.

Rana Nadir Idrees


CIIT/FA12-PMS-007

ix
ABSTRACT

Impact of compensation systems attributes on teachers’


performance with associated variables in universities of Pakistan

This study evaluates how compensation system attributes (CSAs), affect the performance
of teachers serving in universities in Pakistan through the lens of social exchange theory,
which is an over-arching theory used for the current study. Teachers’ performance (TP),
and its relationship with the four CSAs (e.g., pay increase policy, pay levels and mix) have
been described in this research. The idea is to apply a methodological approach to
determine the role of psychological capital (PsyCap) and psychological contract fulfilment
(PCF) as mediators and the role of the social capital (SC) as a moderator. In this regard, a
nationwide survey of 608 teachers from 52 higher education institutes in Pakistan was
conducted using a simple random sampling technique. Survey responses were compiled
and analysed using quantitative research methods, including correlation, regression and
PROCESS, to check for mediation and moderation.
This study reveals that the CSAs positively impact TP. The results also confirm that SC
serves as a moderator between the CSAs and TP. The study also suggests that PsyCap and
PCF positively mediate the link between CSAs and TP. The findings of this research are
fairly aligned with the conclusions drawn under earlier research performed in other areas.
PCF is observed to be a strong mediator. However, the partial mediation of PsyCap in
relation to the CSAs and TP may be attributable to a lack of adequate focus on its
development at the leadership level as well as individuals linking hope, confidence, and
resilience to spiritual beliefs, thus making it relatively indifferent with respect to CSAs.
Apart from bridging the literature gap in the context of establishing linkage of PCF, PsyCap
and SC with TP, this study also provides practical guidelines and suggestions for the policy
and decision makers in HEIs by mainly pointing towards existing compensation
restructuring with a consequential improvement in TP.

Keywords: tenure track system; attributes, compensation system; psychological capital;


psychological contract

x
TABLE OF CONTENTS

1. Introduction…………………………………………………………………..1
1.1 Background of the Problem………………………………………………2
1.2 Pakistani Context………………………………………………………..11
1.3 Core Theories Underpinning the Current Research……………………..15
1.4 Research Problem and Justifications........................................................19
1.5 Problem Statement……………………………………………………....26
1.6 Research Objectives……………………………………………………..27
1.7 Study Contributions …………………………………………………….28
1.8 The Layout of the Thesis………………………………………………..31
2. Literature Review and Framework ……………………………………...32
2.1 Compensation and Employees Performance……………………………33
2.2 Teacher Performance (TP)……………………………………………....35
2.2.1 Teaching…………………………………………………………37
2.2.2 Service…………………………………………………………...38
2.2.3 Scholarly…………………………………………………………39
2.3 Compensation Systems Attributes (CSAs)……………………………...45
2.3.1 Total Compensation Concept……………………………………..46
2.3.2 Work-Life…………………………………………………………52
2.3.3 Performance and Recognition…………………………………….52
2.3.4 Development and Career Opportunities…………………………..53
2.3.5 Pay Increase Policies and Practices……………………………….55
2.3.6 Compensation Systems in HEIs…………………………………..58
2.3.7 Pakistan’s Experience……………………………………………..60
2.4 Psychological Capital (PsyCap)………………………………………...64
2.4.1 Self-Efficacy……………………………………………………...67
2.4.2 Hope………………………………………………………………69
2.4.3 Optimism…………………………………………………………71
xi
2.4.4 Resiliency………………………………………………………..72
2.5 Psychological Contract Fulfilment (PCF)……………………………...73
2.6 Social Capital (SC)…………………………………………………….76
2.7 Compensation Systems Attributes and Teacher’s Performance……….78
2.8 Compensation Systems Attributes and Psychological Capital………...82
2.9 Psychological Capital and Teacher’s Performance……………………84
2.10 Compensation Systems Attributes, Psychological Capital and
Teacher’s Performance………………………………………………...87
2.11 Compensation Systems Attributes and Psychological Contract
Fulfillment……………………………………………………………..92
2.12 Psychological Contract Fulfillment and Teacher’s Performance……...93
2.13 Compensation Systems Attributes, Psychological Contract
Fulfillment and Teacher’s Performance……………………………….94
2.14 Moderating Role of SC on the Relationship between CSAs and TP….96
2.15 Identification of Knowledge Gap……………………………………...98
2.16 COR Theory…………………………………………………………...99
2.17 AMO Theory…………………………………………………………100
2.18 Social Exchange Theory……………………………………………...102
2.19 Conceptual Model…………………………………………………….106
2.20 Hypothetical Framework……………………………………………...106
2.21 Chapter Summary..................................................................................108
3. Research Methodology……………………………………………………109
3.1 Basis and Rationalization of the Research Theme…………………….110
3.2 Research Approach……………………………………………………112
3.3 Research Design……………………………………………………….113
3.4 Sampling Procedure …………………………………………………...113
3.4.1 Unit of Analysis………………………………………………….113
3.4.2 Target Population………………………………………………...114
3.4.3 Sample Size……………………………………………………....114

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3.4.4 Sampling Technique……………………………………………..115
3.5 Measuring Instruments for Constructs………………………………...116
3.5.1 Questionnaire…………………………………………………….116
3.5.2 Mode of Questionnaire Development……………………………116
3.5.3 Structure of the Questionnaire…………………………………...117
3.5.4 Operational Definitions and Instrumentation of Variables………117
3.5.5 Ethical Approval to Advance…………………………………….125
3.6 Analytical Methodology……………………………………………….125
4. Data Analysis………………………………………………………………127
4.1 Data Normality…………………………………………………………128
4.2 Reliability Analysis…………………………………………………….129
4.3 Validity Analysis……………………………………………………….129
4.3.1 Content Validity………………………………………………….129
4.3.2 Convergent Validity……………………………………………...130
4.4 Correlation Analysis…………………………………………………...130
4.5 Descriptive Statistics…………………………………………………..134
4.6 Hypothesis Testing Through Regression Analysis……………………136
4.6.1 CSAs and TP……………………………………………………..136
4.6.2 CSAs and PsyCap………………………………………………...137
4.6.3 PsyCap and TP…………………………………………………...137
4.6.4 CSAs and PCF…………………………………………………....138
4.6.5 PCF and TP……………………………………………………….138
4.7 Mediation Analysis…………………………………………………….139
4.7.1 PsyCap between CSAs & TP……………………………………..139
4.7.2 PCF between CSAs and TP……………………………………....140
4.8 Moderation Analysis…………………………………………………...141
4.9 Summary of Results …………………………………………………...145
5. Discussion…………………………………………………………………..146
5.1 Direct Effects: CSAs on TP, PsyCap, and PCF and PsyCap and

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PCF on TP……………………………………………………………...147
5.2 Indirect Effects: Mediation and Moderation…………………………...149
5.3 Literature Augmentation……………………………………………….150
6. Conclusions………………………………………………………………...151
6.1 Summary of Findings…………………………………………………..152
6.2 Implications of the Study………………………………………………153
6.2.1 Academic/Theoretical Implications……………………………...153
6.2.2 Practical Implication……………………………………………..155
6.3 Limitations of the Study……………………………………………….156
6.4 Recommendations of the Study………………………………………..157
References…………………………………………………………………….159
Appendices…………………………………………………………………….186
Appendix A: Typology of Performance Evaluation System Attributes of
Different HEIs of Pakistan………………………………………187
Appendix B: Typology of Payment System in Different HEIs of Pakistan…...200
Appendix C: Table of Summary of Key Literature Review - In General……..215
Appendix D: Questionnaire …………………………………………………...231
Appendix E: Population and Sampling of HEIs in Pakistan………………….241
Appendix F: Complete List of HEIs in Pakistan……………………………...242

xiv
LIST OF FIGURES

Fig. 2.1: Conceptual Model of CSAs and TP, with Mediators and Moderator………106
Fig. 2.2: Hypothetical Framework of CSAs and TP with Mediators
and Moderator……………………………………………………………… ...107
Fig. 4.1: Mediation Model of CSAs, PsyCap (PC) & TP………….…………………140
Fig. 4.2: Mediation Model of CSAs (IV), PCF (MV) & TP (DV)….………………..141
Fig. 4.3: Moderation Model of CSAs (IV), SC (MV) & TP (DV)………………...…142
Fig. 4.4: Interaction Plot….…………………………………………………………..144

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LIST OF TABLES

Table 1.1: Number of Articles Count and Positioning of Pakistan and its 00
Neighboring Countries Among Top 50 Countries/Territories…….……………..4
Table 1.2: Socio-Economic and Higher Education Specific Statistics of 00
SAARC Countries……………………………………………………………….7
Table 1.3: Faculty Compensation and Performance Management Reforms in the 00
SAARC Region………..…………………………………………………………9
Table 1.4: Statistics Regarding Full-Time Universities Teachers in Pakistan…………...13

Table 2.1: Performance Evaluation System for Teacher's Performance in Different


HEIs of Pakistan…......………………………………………………………….43
Table 2.2: Five Categories of Total Compensation……………………………………...50

Table 2.3: Types of Development and Career Opportunities……………………………54

Table 2.4: Existence and Types of Total Rewards in Different HEIs of Pakistan………62

Table 2.5: Comparison of Different Constructs of PsyCap……………………………...71

Table 3.1: Sample Size Table…………………………………………………………..115

Table 3.2: Dimension and Elements of CSAs (Independent Variable)………………...118

Table 3.3: Dimension and Elements of PsyCap (Mediating Variable 1)………………119

Table 3.4: Dimension and Elements of PCF (Mediating Variable 2) ………………….121

Table 3.5: Dimension and Elements of TP (Dependent Variable)……………………..122

Table 3.6: Dimension and Elements of SC (Moderating Variable)…………………….124

Table 4.1: Normality Statistics of All the Variables (N= 608)…………………………128

Table 4.2: Cronbach’s Alpha Coefficients of All Scales (N=608)……………………..129

Table 4.3: KMO & Bartlett’s Test of Sampling………………………………………..130

Table 4.4: Means, Standard Deviations, Reliabilities, and Correlations among


Variables including Control Variables (N=608)…………………………….131
Table 4.5: Correlation among Variables, including Control Variables………………...132

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Table 4.6: Respondents Mix by Gender (N= 608)……………………………………...134
Table 4.7: Experience Distribution of the Respondents (N= 608)……………………..134

Table 4.8: Respondents Mix by Qualification (N=608)………………………………..135

Table 4.9: Respondents Mix by University Type (N=608)………………………….…135

Table 4.10: Respondents Mix by the Nature of Employment (N=608)………………..135

Table 4.11: Descriptive Analysis (N=608)…………………………………………….136

Table 4.12: Linear Regression Analysis of CSAs and TP (N=608)……………………136

Table 4.13: Linear Regression Analysis of CSAs and PsyCap (N=608)………………137

Table 4.14: Linear Regression Analysis of PsyCap and TP (N=608)………………….137

Table 4.15: Linear Regression Analysis of CSAs and PCF (N=608)…………………..138

Table 4.16: Linear Regression Analysis of PCF and TP (N=608)……………………..138

Table 4.17: Mediation of PsyCap between CSAs and TP (N=608)……………………139

Table 4.18: The Sobel Test for Mediation of PsyCap between CSAs
and TP (N=608)……………………………………………………………..140
Table 4.19: Mediation of PCF between CSAs and TP (N=608)……………………….141

Table 4.20: The Sobel Test for Mediation of PCF between CSAs and TP (N=608)…..141

Table 4.21: Hierarchical Multiple Regression Analysis of CSAs, SC and TP (N=608).142


Table 4.22: Process Procedure Summary: Moderation Model of SC, CSAs and TP
(N=608)……………………………………………………………………..143
Table 4.23: Process Procedure Summary: Moderation Model of SC, CSAs and TP
(N=608)……………………………………………………………………..143
Table 4.24: Process Procedure Summary: Conditional Effect of X on Y at Values of
Moderator (N=608)…………………………………………………………143
Table 4.25: Summary of Results……………………………………………………….145

xvii
LIST OF ABBREVIATION

AS Area of Specialization
BPS Basic Pay Scale
BSC Balance Scorecard
CUE Current University Experience
CUST Capital University of Science and Technology
COLA Cost of Living allowance
CPI Consumer Price Index
CI Confidence Interval
CIPD Chartered Institute of Personal Development
CSA’s Compensation Systems Attributes
D Designation
DFID Department for International Development
ECT Employment Contract Type
EP Employee Performance
FC Financial Capital
FCCU Forman Christian College University
G Gender
GDP Gross Domestic Product
GOP Government of Pakistan
H No. of Hours Worked
HOD Head of Department
HRM Human Resource Management
HC Human Capital
HEIs Higher Education Institutions
HEC Higher Education Commission
HR Human Resource
HRD Human Resource Development
IQ Intelligence Quotient / Cognitive Intelligence
KMO Kaiser-Meyer-Olkins

xviii
KPI’s Key Performance Indicators
LUMS Lahore University of Management Sciences
MSs Master of Sciences
MPhil Master of Philosophy
N Sample Size
NPM New Public Management
NUST National University of Science and Technology
PU Punjab University
PCIs Psychological Capital Interventions
PCF Psychological Contract Fulfillment
PsyCap Psychological Capital
PIs Performance Indicators
Q Qualification
R Pearson’s Correlation Coefficients
SD Standard Deviation
SPSs Special Pay Scales
SKAs Skill, Knowledge and Attitudes
SPSS Statically Package for Social Sciences
SC Social Capital
SDGs Sustainable Development Goals
TIER Teaching Integrity in Empirical Research
TP Teacher’s Performance
TTS Tenure Track System
UT University Type
UMT University of Management and Technology
UHS University of Health Science
UNDP United Nations Development Programme
USAID United States Agency for International Development
UVAS University of Veterinary and Animal Science
UNESCO United Nation Education Science and Cultural
Organization

xix
CHAPTER 1
INTRODUCTION

1
1 I ntroduction

Introduction
1.1 Background of the Problem
Education considered as one of the greatest asset (Sterling, 2001), and it was cleared
that the natural resources, physical capital, and low skill labour, facets that were critical for
its progress in the last century, inadequately employed in this century. As the development
and nourishment of the most important asset, ‘the human resource,’ was holistically a
government responsibility. Higher education significantly contributed to producing both
Human Capital (HC) and new knowledge, which resulted in developing and managing
society's institutions (Johnes, 2006). Past evidence and global case studies suggested that
it was commendable if a country's government gave importance to take key actions towards
transforming developing countries, like Pakistan, into strong knowledge economies
through sustainable higher education.
A major component of sustainable development in an economy was the reduction
of unemployment through enhancing higher education institutional performance.
Currently, there are 197 million unemployed people in the world, making up 6% of the
global population. This figure did not include the 39 million employees who were laid off
from the organizations for which they worked (Orhangazi, 2015). World Bank (2015)
reported that the unemployment rate of those with advanced education is 40.2% of the total
labour force; this rate had increased drastically since 2014 when it was only 16.6%. So, it
was imperative to improve the performance of universities and its teachers so that they
could better train, educate, and develop their students, which would, in turn, revolutionize
the potential of the country's youth. National and international institutions across the globe
had regarded the higher education sector in particular as the core area for the strategic
strengthening and stability of any nation (Bosetti & Walker, 2010).
The flow of innovative ideas, solutions, and technological advancement across the
world were encouraging organizations to focus on hiring knowledgeable workers to fulfil
the increasing and varying demands of society (Kuruvilla & Ranganathan, 2010).
Organizations attempted to achieve competitiveness and superior output through value
enhancement programs aimed at its employees (Harvey, 2009). As such, employee
performance was becoming a key strategic policy dilemma for many organizations.

2
Using strategies such as Total Reward Strategy aligned with the business as well as
people-focused strategies were practised in the current decade. Such a strategy aimed to
achieve the optimum impact of different reward categories on employees’ motivation and
commitment (Cao, Chen, & Song, 2013; Kaplan, 2007; Sweeney & McFarlin, 2005; Tsede
& Kutin, 2013). Compensation systems were very prominent (and were sometimes even
considered dominant) in organizations’ human resource management strategies (Gerhart et
al., 2015). Universities could not be exempted from this. Higher education institution (HEI)
teachers offered distinctive risks and challenges when it was a matter of compensation
systems attributes (CSAs), partly because of their own unique nature and partly because of
their unique working context. For example, Höhle and Teichler (2013) noticed that among
the highly acknowledged peculiar features of academic professionals, was their continual
involvement in the process of learning and maturation, their high degree of selectiveness
regarding their careers, their enjoyment of the freedom they had in determining their work
tasks, and their high level of identification with their profession.
HEIs in developing countries adversely affected by administrative reforms related
to accessibility, accountability, and marketization. Similarly, the faculty of these
institutions perceived the stringent assessments of their teaching and research performance
as a challenge to their autonomy. Appropriate and acceptable performance-appraisal
mechanisms needed to be introduced so that the faculty could remain motivated and also
simultaneously determined to perform their job.
However, in developed countries, teachers kept themselves motivated in high-level
teaching and research while safeguarding the core values of their HEIs. This was in sharp
contrast to the situation in developing countries. For instance, in these countries, according
to Altbach (2002), faculties worked with insufficient financial resources and higher
workloads than those in developed countries. This workload was lowering faculty
members’ psychological contract fulfilment (PCF) (which explained as the degree to which
both employers’ and employees’ promises were fulfilled, as perceived by employees) and
psychological capital (PsyCap) (which referred to human capital attributes like hope, self-
efficacy, resilience and optimism). Resultantly, teachers’ performance (TP), including their
research, teaching, and service output, also suffered.

3
In these developing countries, a number of initiatives and reforms were
implemented a couple of years ago. However, in spite of this, no updates or follow-up
investigation made regarding the influence of compensation on staff productivity in general
or in terms of PsyCap and PCF in particular. Teachers in developing countries engaged
more in teaching and less in research and service than they were in the past. Over the past
decade, however, HEIs became more focused on teachers’ research and service when
assessing their performance. If one looks at university rankings, the role of citations and
research, in addition to teaching, are critical facets for countries irrespective of their stage
of development.
According to the Nature Index (see Table 1.1), the article counts of the top 50
countries/territories in 2016 depicted that Pakistan was far behind China, India, and Iran
who secured the 2nd, 13th, and 33rd positions, respectively. Thus, emphasis on higher
education was even more crucial considering that The Global Competitive Index 2014-
2015 had marked higher education among the most important factors for global
competitiveness.
Table 1.1: Number of Articles Count and Positioning of Pakistan and its Neighboring
Countries Among Top 50 Countries/Territories
Country 2012 2013 2014 2015 2016
China 6585 7631 8828 9698 9772
India 1190 1377 1523 1589 1612
Iran 143 121 149 180 246
Pakistan 62 62 - 130 162
Source: Nature Index (2018) Note: The Nature Index is an author affiliation information database compiled
base on research publications in selected set of 82 high quality science journals.

A World Bank report "Higher Education Faculty in South Asia" by Chapman


(2009) showed that faculty of these institutions confronted with contradictory and,
sometimes, irreconcilable requirements by their institution heads. This was primarily
instigated by the multifarious functions that HEIs were expected to perform within their
countries. Contrary to the perception that the teaching profession was highly valued and,
consequently, compensated generously, this was generally not the case. A survey
conducted across twenty-eight countries and all continents (Altbach, 2012) confirmed this
irony. This aspect was also reinforced in an Asian Development Bank report (2011) which
acknowledged that intrinsic and extrinsic rewards were poorly linked to both the teaching

4
quality and research output of teachers. Often, this was due to inadequate, unsuitable, and
varying set of rewards made available to them. Hence, it was important to identify,
evaluate, and improve the policies affecting the motivation and performance of teachers in
this region (Bleiklie, Enders, & Lepori, 2013). On another level, it was equally crucial to
discover why many teachers started to ponder over the degree to which their psychological
contracts were being fulfilled on the job and the adjustments they consequently made to
their performance.
To date, research mainly confined to exploring the various aspects of the
psychological contract primarily in terms of its violation. Hence, little attempt was made
to analyse PCF on a stand-alone basis. This paper, on the other hand, attempted to address
this gap by incorporating staff's perception of PCF. Since the faculty was expected to return
the favour by meeting their identifiable undertakings, it was vital that their point of view
was also taken into consideration as part of any study on this topic (Grimmer & Oddy,
2007; Katou & Budhwar, 2012). Hence, this research not only discussed the fulfilment of
institutional commitments in the eyes of teachers but also probed into analysing its indirect
impact on TP in HEIs.
As part of our analysis on Pakistan, it was significant to consider the case study of
other comparable countries in the South Asian Association for Regional Cooperation
(SAARC). SAARC countries, like Pakistan, also substantially relied on its students, who
were groomed for success by HEIs. The education system, and especially the higher
education system of the SAARC, was highly competitive, with a literacy rate of
approximately 67% (15 years and older). The total government expenditure on education
was approximately 15% of gross domestic product (GDP), government expenditures on
education was approximately 3.8%, while the government expenditure on higher education
was approximately $2361(in PPP$) per student. About 10, 65,142 teachers and almost 15%
of the total student body was enrolled in HEIs. In total, 1150 HEIs were in competition
with each other for student enrolment and funding. In such a situation, having an academic
staff with unparalleled research, teaching and administrative output not only improved their
local and international ranking but also aid in attracting students. One aspect that deserves
particular attention was the rise in entrepreneurship in HEIs and the associated revenue-
generating potential that this had. This aspect was instigated by a shift towards

5
commercialization and unprecedented investments in the private sector. HEIs were
conveniently positioned to provide these newly established business ventures with not only
mentorship facilities but also partial or complete funding. Such incubation centers had
sprung up in many universities including LUMS and NUST where entrepreneurship
platforms provided the basic financial and training infrastructure for a percentage return on
investment.
SAARC countries exhibited a huge potential to develop a highly trained faculty
pool and, consequently, meet its international commitments regarding the achievement of
sustainable development goals (SDGs) and supplying well-trained human resource aid to
SAARC Governments (at the federal, provincial, and local levels). Currently, SAARC
nations had a GDP of 9876 billion (in PPP$), a population of 1743.921 million growing at
1.59% and a majority younger age profile (326.709 million people were between the ages
of 15-24 years)
Moving on to a country-wise analysis, researcher observed that according to the
World University Rankings 2016-2017, issued by Times Higher Education, not a single
Indian HEI was listed in top 200 HEIs in the world. Similarly, only one Pakistani HEI (the
National University of Science and Technology, Islamabad) was listed in the top 500 HEIs
in the world. This was an alarming situation, especially considering that not a single
university in the other SAARC countries was listed in the top 500 HEIs in the world. These
poor ranking statistics were primarily due to low research scores of the faculty in these
universities. This showed that in order to significantly improve the university rankings of
SAARC countries, it was vital to hire and retain the finest faculty through attractive
incentive offerings (Salmi, 2009). The country-wise details of each SAARC country
(depicting socio-economic and higher education specific indicators) are tabulated below.

6
Table 1.2: Socio-Economic and Higher Education Specific Statistics of SAARC Countries
Population Populatio GDP Literac No. of Student Annual Total Governme Governme No. of
(in n 15-24 in y Rate teacher in s Populatio Governme nt nt HEIs
Thousands years (in billion (15 HEIs enrollm n Growth nt expenditur expenditur
) thousands s- years ents in (%age) expenditur es on e in HE per
) PPP$ and HE e (%age) education student (in
older) (%age) as a % of PPP$)
up to GDP
2015
Afghanistan 32,527 6,885 63 31.74 5474 8.66 2.8 12.51 3.32 795.01 48

Bangladesh 160,996 31,349 538 72.76 5638 * 13.44 1.2 13.82 1.93 622.59 115

Bhutan 775 152 6 57.03 725 10.93 1.3 25.52 7.36 3994.95 15

India 1,311,105 241,540 8,000 69.3 947804 26.87 1.2 14.09 3.84 2419.14 799

Nepal 28,514 5,965 70 59.63 16301 14.94 1.2 17.11 3.71 607.17 9

Maldives 364 70 5 98.61 300 16.23 2.0 12.88 5.22 4400.32 1

Pakistan 188,925 37,628 947 56.98 83,375 9.93 2.1 13.19 2.65 2886.1 163

Sri Lanka 20,715 3,120 247 91.18 5525 19.8 0.9 10.95 2.18 3160.39 16

Total/Avera
1,743,921 326,709 9876 67.15 1065142 15.10 1.59 15.01 3.78 2360.7088 1150
ge
Sources: This is retrieved from http://uis.unesco.org/, http://uis.unesco.org/en/country/bd /http://uis.unesco.org/ and https://www.4icu.org/af/index.html dated on
15the December, 2017.* Bangladesh so far data only found of the Year 2007 .

7
In order to address these concerns and ensured a stable and quality HC supply,
robust and performance-driven compensation system reforms in HEIs were needed.
Realizing the gravity of the aforementioned issues, the higher education commissions of
SAARC counties implemented a number of faculty compensation and performance
management reforms and initiatives in recent years to boost TP. Table 1.3 on the following
page showed a listing of such reforms along with some other pertinent information.

8
Table 1.3: Faculty Compensation and Performance Management Reforms in the SAARC Region
Country Reforms
Afghanistan 1-Pay and Grading Process for a Reward Structure
2-Non-Salary Incentives included a Program of Land Lease and Housing Finance.
3-Teaching and Learning: The concerned ministry would provide training to university teachers to enhance the teaching
performance. Excellent teaching will be acknowledged and compensated. Scholarship for PhD training outside
Afghanistan will be given to 330 people including teachers.
India 1-Pay Increments by the 7th Pay Commission
2-Research Awards for the Teachers
3-Scholarship for PhD Scholars.
Pakistan 1-Funds for Performance-Based Compensation System i.e. Tenure Track System (TTS).were given to 2,000+ tenure
track public sector university teachers.
2-Funds for Interim Placement program for Fresh PhDs are given.
3-Research Awards for the Teachers
Sri Lanka Salaries Revision
Bangladesh 1-About 100 Grants were awarded to faculty members that would strengthen research capabilities in universities.
2-Attractive Monetary Compensation Initiatives are in process for attracting the best brains and researchers as teachers.
Nepal Initiative yet to be taken against the demand of Nepal University Teachers’ Association that salary of top HEIs teachers
in Nepal is comparable to SAARC-level, an environment conducive for research be created and higher education policy
of federal Nepal be formulated.
Maldives Teachers’ Pay has been increased by 35 and 15 Percent

9
Bhutan 1-Promotions in congruence with Nation Civil Service Rules
2- Awards to Teachers
3-Fellowship and Scholarship Programs.
Sources: This is retrieved from http://jobless.af/companies/ministry-higher-education/; http://vikaspedia.in/education/policies-and-schemes/new-initiatives-
taken-by-the-ministry-of-hrd#section 17;http://www.moent.gov.pk/userfiles1/file/National%20Educaiton%20Policy%202017.pdf;
http://www.ugc.ac.lk/attachments/1771_scan0181.pdf; https://www.adb.org/sites/default/files/publication/184418/innovative-strategies-higher-education-
ban.pdf; https://minivannewsarchive.com/politics/education-ministry-hikes-teachers%E2%80%99-pay-by-35-and-15-percent-92062;
http://www.education.gov.bt/documents/10180/12859/Teacher+HR+Policy+2014.pdf/8d09b94f-e435-4e8d-8414-6cf771005db0?version=1.0 dated 15the
December 2017

10
The study reviewed the status and implementation of compensation and
performance management reforms of SAARC and sharing the implementation with
reference to SAARC while investigating Table 1.3. In terms of implementation, for
instance Afghanistan, Ministry of Higher Education Afghanistan (MoHE), with the help of
bilateral, multilateral and donor agencies, was implementing initiatives like professional
career and development program of young lecturers of the universities in different fields
and training and development of human resources in HEIs (Ministry of Higher Education,
2019). In India, bureaucratic hurdles had caused a delay in the implementation of higher
allowances under the 7th pay commission plan. Lack of political buy-in in certain states of
India also posed implementation challenges and resultantly in some of the states, only 4th
pay commission was implemented (Cleartax.in, 2019).
In Pakistan, funds were provided by the government through HEC under the tenure
track system to HEIs (Daud, 2019). However, the rise in salary under TTS was considered
insufficient. The faculty performance system under TTS did not fit in the requirement of
diverse nature of HEIs. Pay regime under BPS also required compatibility with TTS. Salary
revisions in 2016 in Sri Lanka was implemented (Revision of Salaries in Public service-
2016, 2019). However, pay revisions for 2018 were yet to be implemented. Nepal had not
witnessed any visible progress in terms of bringing alignment of the pay structure of HEI
teachers with SAARC-level (Iias.asia, 2019). In the Maldives, the salary was raised. In
Bhutan, there would be another salary raise for civil servants in the 12th Plan drafted by
the Gross National Happiness Commission (GNHC) with the consultation of all
stakeholders. Salary was revised according to the 11th plan (servants, 2019).
All this points to the fact that implementation of pay reforms was always a very
challenging and time taking process in the developing countries and Pakistan was not an
exception to this.

1.2 Pakistani Context


Higher education in under-developed countries, especially in Pakistan, is not
appreciable. In Pakistan, there are 170 HEIs (100 public: 72 private) recognized by the
HEC, Government of Pakistan (“HEC,” 2016). The positioning of the 170 HEIs in the top
500 HEIs of the world in 2017 was alarming; only one university was ranked (in 496th

11
position) (“Top 500 Best Universities,” 2018). A lot of hard work done to identify the
success factors of world-class universities and to use them as standards to improve the
performance of any university irrespective of its present level of quality and to compare a
university’s performance to that of other universities (Alden & Lin, 2004).
The HEC of Pakistan reported that universities had not met the minimum
requirements of the performance. As such, they were warned that they might receive severe
penalties and consequences (Ismail, 2015). The current higher education system of the state
was in turmoil, as it was still not providing quality among other factors at every level (Aziz
et al., 2014). Public universities were facing serious criticisms, yet nothing was done on
empirical grounds (Akhtar & Kalsoom, 2012).
Pakistan ranked low in academic quality and performance, particularly in
comparison with its neighbours Iran and India (Hoodbhoy, 2009). Accordingly, the
performance of public sector universities in Pakistan also criticized (Akhtar & Kalsoom,
2012). The evidence presented in previous research suggested that public universities were
underperforming. This could be seen from the poor quality of their graduates, research,
academic performance, and general management. Haider and Ali (2015) suggested that
even though many public sector HEIs in the country ranked very low in the World
Universities Rankings, no one seemed to be concerned. There seemed to be no urgency
amongst the authorities and officials on the matter, and no plan was derived to solve this
problem.
Bilal and Khan (2012) reported the sub-par performance of universities in Pakistan,
particularly in public-sector universities. Tarar (2006) pointed out that the universities of
Pakistan had not shown significant improvements despite growing globalization concerns.
Underperforming faculty members were producing underqualified students, thus resulting
in the continuous worsening of universities’ performance. The Global Competitive Index
2014-2015 had labelled higher education one of the most significant determinants for
global competitiveness. Sadly, Pakistan ranked 129th (Dawn, 2014). Quality leadership
and capacity building were prerequisites for better performance in the higher education
sector (Hoodbhoy, 2009).
Upon analysing the facts regarding education and the research output of teachers
(see Table 1.4), it was found that in 2015, there were 10,214 university teachers who held

12
PhD degrees and 27,183 university teachers who did not have a doctoral degree. These
teachers published only 11,444 research articles, reviews, and conference papers in total.
HEIs in Pakistan were experiencing the quality issues in both of these ways (Aziz et al.,
2014).
According to Government of Pakistan (2019), Pakistan produced 1,351 PhDs in
2014 (7.3 per million population), which far less than corresponding indicator for India of
24,300 PhDs (18.8 per million population) as cited in Organisation for Economic Co-
operation and Development (OECD) report in 2016. The performance of HEIs of Pakistan
was far behind when compared with the performance of international HEIs because the
university teachers in such institutions did not produce above average (or even average)
research, teaching, or service performance. There were a number of factors responsible for
this below average output and lesser input towards overall university output. These
included the hardly visible service structure for university teachers, the lack of PCF, and
lower psychological capital, among other factors.
Table 1.4: Statistics Regarding Full-Time Universities Teachers in Pakistan.
Description 2013 2014 2015

PhD Faculty 8015 9475 10214

Non PhD Faculty 22445 25121 27183

Higher Education Institutions 153 167 170

Research Output (Articles, reviews and 11008 11218 11444


conference papers).

Source: Government of Pakistan. Higher Education Commission, (2017) &


http://www.scimagojr.com/index.php

It was also evident from the facts and figures given in Table 1.4 that only 27% of
university teachers were PhD qualified. This pointed to the dearth of well-qualified
teachers that were required to educate and develop quality human resources. Meanwhile,
73% of university teachers needed to raise the degree of their qualification. To sum up the
earlier discussion, 27,183 university teachers needed to enhance their qualifications for
their self-improvement. As in the existing socio-economic circumstances in Pakistan,
survival in the profession was becoming difficult, as teaching had increasingly become
more demanding and complex. It was apparent that majority of the institutions were not at

13
all reluctant to curtail headcounts in their best interests to control their operational costs in
terms of payroll and fringe benefits following the worldwide economic crises of 2008
(Shahzad, 2013; Tan, 2010).
Pakistan, with approximately 207 million population occupied the 6th position
among the most populous country in the World (Economic Survey of Pakistan, 2018). The
younger age profile of Pakistan’s population indicated that approximately 54% of the total
population was up to 24 years old. This scenario demanded that the future needs of the
country’s youth were addressed. Student enrolment rate was ever increasing in tertiary
education. According to Yang and McCall (2014), government HEIs were serving nearly
20-30% of the total global population and were facing various performance management
issues. According to Halai (2013), the low employability of graduates from HEI's indicated
that Pakistan’s HEIs were akin to degree-distributing factories.
The universities should aim to understand the importance of implementing an
appropriate and acceptable system of compensation besides merely developing and
measuring teachers’ PsyCap and enhancing PCF to boost their performance. The strategic
indicators of the economy and the large youth population of Pakistan stressed the need to
develop a skilled workforce that could better serve the present and future needs of different
organizations in Pakistan. A pragmatic aim for the HEC of Pakistan would be to
enthusiastically follow its agenda for diverting investment towards higher education
system as a strategic priority where higher education teachers toiled as the key drivers of
the supply chain of education.
Considering the pervasive effect of faculty productivity, the current study tried to
predict the teacher performance in universities of Pakistan. As quality performance in the
research, teaching, and service domains was the central aim for the majority of the
university teachers. While public HEIs were critically evaluated as money-wasting
organizations of the state (Siddiqui, 2010), university TP was necessary for government
HEIs more than the teachers themselves.
PsyCap, a new type of capital as opposed to the traditional ones such as financial,
human, and social capital (SC), was identified as an associated factor with employee
performance (Luthans, Avolio, Walumbwa, & Li, 2005). PsyCap referred to positive
psychological strengths of the employee that included self-efficacy, hopefulness,

14
optimism, and resilience (Avey, Luthans, & Jensen, 2009), researchers had frequently
tested the independent influence of these strengths as mediators with various variables. It
was found that cognitive disposition, the role of leadership, job design, and pragmatic
reasons were the possible predictors of PsyCap (Avey, 2014b). A study conducted by Avey
(2014) encouraged the search for new antecedents of PsyCap and the further exploration
of the existing categories of antecedents.
Job design fitted with intrinsic compensation studied as a potential way to enhance
PsyCap. However, total reward attributes using both intrinsic and extrinsic compensation
attributes influenced employees’ composite PsyCap, and resultantly, the individual output
was largely under-explored, especially in higher educational settings. However, the current
work examined the association between total CSAs and TP through the mediation of
PsyCap.
Organizational behaviour and applied psychology literature confirmed that people
with SC and PsyCap perform better than others (Feldman, Brondolo, Dayan, & Schwartz,
2002; Luthans, Avolio, Avey, & Norman, 2007), and that good performance demanded an
effective pay package. The effect of SC on TP in HEIs, yet to be explored. The ranking
competition and entrepreneurial role of HEIs had led to increased competition in recent
years. HEIs were competing for competent faculty members by offering just, equitable,
and acceptable reward packages. A highly skilled faculty was the core of recognized HEIs,
as this fostered a conducive environment and privileged platform for the production and
dissemination of knowledge (Balcázar & Ñopo, 2016; Khalid, Irshad, & Mahmood, 2012).
Past studies stressed that teachers placed a greater emphasis on internal satisfaction than
external satisfaction (Place, 1997; Wu & Short, 1996). Yet, previous studies also
highlighted that satisfiers (both inner and outer) led to teacher satisfaction (Dvorak &
Phillips, 2001).

1.3 Core Theories Underpinning the Current Research

Conservation of Resources (COR), Ability Motivation and Opportunity (AMO) and


Social Exchange (SE) theory are underpinnings for current research. Among these, SE
theory could be considered as the over-arching theory for the variables of interest
understudies such as PCF, SC, and PsyCap. Current research model was devised to study

15
CSAs and TP as a directly related variables and also if and how the PCF, PsyCap play
mediating role in the context of aforesaid relationship.
In organizations, management primarily concerned with human, social, and
financial capitals. PsyCap had emerged as a fourth important factor over the past decade.
PsyCap was described through Psychological capital frameworks such as COR theory
(Hobfoll, 2002). This theory explained, how work force motivated to gain, retain, and raise
the required resources in the form of PsyCap to show better performance. Researchers
shown that PsyCap positively influenced academic achievements and educational
organizations’ performance. An employee’s motivational endeavouring and choices was
the result of PsyCap comprising of four foundations, namely, (1) hope, (2) self-efficacy,
(3) resiliency, and (4) optimism, which resultantly enhanced motivation and productivity
(Hobfoll, 2002). Moreover, the motivation level, choices and ability of any employee
enhanced through high-performance work systems (HPWS) fairly similar to AMO. HPWS
such as skill enhancement and training, better pay and career growth avenues (Appelbaum,
Bailey, Berg, Kalleberg, & Bailey, 2000), provided a platform to enhance motivation and
performance of the employee (Jyoti & Dev, 2016). It was important for all sectors in
general and services sector, in particular, to follow and implement HPWS. According to
Appelbaum et al. (2000), HPWS included "employee ability-enhancing practices (such as
training and skill development) (A), employee motivation-enhancing practices (including
high pay, career development and top-down information sharing) (M) and practices that
gave employees the opportunity to involve in decision making (O)". HPWS such as career
and development avenues, flexible work schedule and performance bonuses provided a
platform to enhance motivation and performance of the employee (Jyoti & Dev, 2016).
Same was supported in the service sector of India (Ananthram, Xerri, Teo, & Connell,
2018). It also found in Spanish hotel services that HPWS comprising horizontally and
vertically synchronized human resource practices improved employees' productivity
(García, Cortés, Lajara, Sáez, & Lillo, 2018). Moreover, it was usually observed that
service-oriented HPWS such as the training system, the performance evaluation and
compensation structure, points towards a significant focus on service and hence, boosted
staff motivation to demonstrate quality performance (Hong, Liao, Hu, & Jiang, 2013).
HPWS was a currently under-researched area especially in the services sector (Combs, Liu,

16
Hall, & Ketchen, 2006). This research was important because it had the potential to enable
service sector employees to perform better (Batt, 2002). Perhaps HPWPs that mitigated
stress, for instance flexi workplace arrangements (Baltes, Briggs, Huff, Wright, & Neuman,
1999), were of greater significance in service sector as opposed to manufacturing outfits
(Combs et al., 2006).
SE theory as one of the underpinning theory for this research, was originally pitched
by George Homans in 1958 and was later advanced by other theorists (e.g., Blau, 1964;
Emerson, 1976), is broadly the most recognized and used academic model from a
psychological exchange viewpoint and based on a few key characteristics – give-and-take
of behaviours, whether they were physical or non-physical and differences in pay between
two or more people (George & Homans, 1961).
According to SE theory, (Shaw, Dineen, Fang, & Vellella, 2009), two diverse
groups of HRM practices: (1) investing and inducing practices of HR management (such
as better development and more salaries) that boosted employees expected performance
through motivation enhancement (Tsui, Pearce, Porter, & Tripoli, 1997) and (2) HRM
expectation-enhancing practices (such as employee productivity schemes and individual
productivity assessment) that enhanced overall productivity by stressing on employer's
expectations from employees (Shaw, Delery, Jenkins, & Gupta, 1998).
Compensation systems feature various attributes which employees considered
important (aside from a few moderating and mediating variables) and resultantly affecting
employee performance. Teachers of HEIs were not an exception to the perceived
relationship between CSAs and performance. Previous literature described the role of
CSAs on employee performance (Decramer, Smolders, & Vanderstraeten, 2013; Durant,
Kramer, Perry, Mesch, & Paarlberg, 2006; Gerhart, Milkovich, & Murray, 1992; Greller
& Parsons, 1995; Kerchner & Cooper, 2003; Kershaw & McKean, 1962; Oliver &
Anderson, 1995; Pfeffer & Baron, 1988; Skinner, 1969). The literature also described the
association between PsyCap and employee productivity, including other consequences
(Avey, Reichard, Luthans, & Mhatre, 2011a; Combs, Smith, & Nadkarni, 2010; Dieleman,
Gerretsen, & Wilt, 2009; Durant et al., 2006; Hair, Ringle, & Sarstedt, 2011; Peterson &
Luthans, 2003; Sun, Zhao, Yang, & Fan, 2012). There was not enough literature available
on the relationship of CSAs and overall PsyCap (Bakker & Demerouti, 2008; Cascio, 2009;

17
Gu & Day, 2013; Programme, 2013; Wang, Hutchins, & Garavan, 2009; Youssef &
Luthans, 2015; Youssef & Luthans, 2007).
In addition, there was very little literature support available on the link between
CSAs and PCF (Ali & Akram, 2012; Gellner & Schlinghoff, 2008; Cason, Masters, &
Sheremeta, 2010; Mejia & Balkin, 1992; Guest, 2004; Kunz & Linder, 2012; Silverman,
Jarvis, Jessel, & Lopez, 2016; Vroom, 1964). There were also very few pieces of research
showing the relationship between PCF and employee performance (Robinson, 1996;
Rousseau, 1995; Yongjing, Huixin, Zheng, & Baoshan, 2010b). Some research shown that
self-esteem was a mediator among CSAs (Blegen et al., 1992; Carter & Tourangeau, 2012;
Gardner & Pierce, 1998; Kalisch, Lee, & Rochman, 2010; Locke, McClear, & Knight,
1996; Maslow, 1943; Thierry, Erez, Kleinbeck, & Thierry, 2001; Tourangeau, Cummings,
Cranley, Ferron, & Harvey, 2010; Tyler & Blader, 2002) and employee’s PsyCap (Froman,
2010; Nahrgang, Morgeson, & Hofmann, 2011).
Some studies tried to describe the resilience and self-efficacy dimensions of
PsyCap, rather than overall PsyCap, as mediator between CSAs and employee productivity
(Dyer, Schwab, & Theriault, 1976; Shin, Taylor, & Seo, 2012; Stajkovic & Luthans, 2001,
2003; Wu, Chen, & Leung, 2011). A study similar to the present study indicated that overall
PsyCap was a mediator, and highlighted the need for mediation towards a friendly
institutional environment and employee productivity (Luthans, Norman, Avolio, & Avey,
2008a). Another similar study showed that PCF was a mediator between HR policies and
institutional productivity (Katou & Budhwar, 2012).
Other studies had found the relationship of CSAs and staff productivity in the
presence of HC (Harris & Helfat, 1997), but it was seen mostly as supervisory and
colleague support to develop SC (Leana & Pil, 2006). No study had simultaneously
analysed both PsyCap and PCF as mediators between compensation systems and employee
performance. The perception of teachers about CSAs as they relate to their performance in
the presence of the intervening mechanism of PsyCap on teachers has not been researched
in the context of HEIs. Thus, the function of compensation systems as an antecedent for
building PsyCap in HEIs of Pakistan was still unknown. Similarly, the analysis of how
PCF mediated the link between CSAs and TP in the higher education domain of Pakistan

18
remained unexplored. Moreover, the moderating roles of SC with respect to CSAs and TP
were also under-explored.
Performance indicators (PIs) in institutes of higher learning emphasised essentially
on research output while largely ignoring the teaching function of universities and colleges
(Ramsden, 1991). HEIs wanted to improve overall faculty output by upgrading their
standards in research, teaching, and/or community engagement (Kenny, 2016). The
adoption and implementation of these three categories of performance evaluation might
vary from university to university and from department to department within a university.
Some universities gave more weight to research, while others preferred teaching over
research, and others emphasised research and teaching equally. Some universities still
relied on supervisors for appraisals but did not have any clear-cut criteria, which was an
unreliable appraisal method; teachers must be aware of the appraisal criteria in order to
know how to proceed (Miller, 1972). Researcher had studied faculty evaluation systems
(Arreola, 2004; Brown, 1984; Centra, 1994; Sapone, 1980), but many did not suggest
specific criteria, measures, or rewards (Camp, Gibbs, & Masters, 1988). A comprehensive
framework for faculty evaluation should be established that fitted an array of departments
and faculties in universities. The present study used a model that considers all essential
indicators of evaluation that demonstrated the quality of teaching, research, and service
outputs and permitted teachers to focus on their areas of interest and competence. The
present study also considered the total reward approach for assessing CSAs instead of using
the traditional approach.

1.4 Research Problem and Justifications

Given the literature foundation laid in the preceding section, current research drew
strength and inspiration mainly from SE theory as over-arching literature to study the role
of university teacher in the HEIs. It was revealed form the literature that CSAs were
important for teachers but they were not generously compensated and valued in HEIs of
South Asia, SAARC and Pakistan. Resultantly, the current research intended to find the
answer to the question of how better CSAs affected TP directly and with moderator (SC)
and mediators (PsyCap and PCF). Naturally, having a better understanding of the
prevailing CSAs and TP was imperative so that the outcome of the same could be seen in

19
the relevant background. This section mainly explained the research problem definition
and justification on these lines in detail.
Universities provided a conducive environment and privileged platform for creating
and imparting wisdom, and teachers were presumed to be the core service-delivery link
regarding the overall education services supply chain (Balcázar & Ñopo, 2016). In a
globalized world, universities were extremely important for generating, preserving, and
transforming knowledge into wider economic and social benefits. A highly dedicated,
focused, and intriguing teacher works as a catalyst and fosters innovation in their students
who might then find solutions to the world’s problems. Because of this, it seemed that it
would be fair for those working in the teaching profession to be highly valued and
compensated generously; however, this was not generally the case (Rumbley & Altbach,
2016).
Why are attractive CSAs in HEIs perceived to affect TP? To what extent do PsyCap
and perceived PCF help teachers achieve their organizational and individual goals? How
does SC influence the relationship between CSAs and TP? These were the fundamental
questions which provided inspiration and reduced the scope of the current research and led
to the choice to emphasis on the impact of CSAs and other associated variables on TP in
the present study.
PsyCap and PCF are subsets of the overall concept of compensation, a thorough
understanding of which is important to evaluate its relationship with TP. A well-balanced,
total compensation system could be an effective tool in the hands of contemporary
management for motivating teachers to exhibit goal-oriented behaviour. The effect of each
element of compensation practice on costs, benefits, teacher perception, and effects on a
university's strategic position could be substantial or minimal depending on each
university’s specific circumstances.
While there might be no best compensation system or scheme for any given university,
an optimal scheme of total compensation could be custom-designed after a thorough
analysis of all related factors has been carried out. A study of compensation schemes
prevalent in HEIs highlights the key ingredients of a university's pay structure and areas
requiring customization.

20
Though the answer seems to be obvious: that CSAs should be capable to spur the
PsyCap and PCF levels of teachers. Such CSAs have dual effects; initially, they augment
the PsyCap and PCF of employees who done quite well by distinguishing them from
normal or under-performing employees, and furthermore, they inspire the underperformers
to work harder to be appreciated and compensated. Given that the teacher was one of the
key performance drivers in HEIs, inadequate CSAs were perceived to hinder the attainment
of the governmental, university, departmental, and individual performance objectives in
HEIs.
According to the HEC of Pakistan (a regulator of higher education in Pakistan), only
a single Pakistani HEI ranked among best 500 HEIs in the world last year. This showed
the gravity of the situation, particularly when taken in conjunction with the preceding
discussion and necessitates the establishment of structured research to assess the extent to
which teachers’ PsyCap and PCF led to a desirable level of TP. In this context, the
aforementioned research investigates the key factors behind non-appealing PIs (academic,
research, and service) in Pakistan's HEIs and their relationship with CSAs.
Recognition, work-life balance, career growth, and carefully considered performance-
based pay policies were some of the key elements that have an important bearing upon the
TP, life quality, and resultantly productivity. The investigation conducted as part of this
research reinforces the importance of these elements. This study was the first empirical
analysis of CSAs, PsyCap, PCF, SC, and TP in HEIs. It was observed that even if
academics have the desire and required skill to do a certain task, they might still fail if they
lack confidence. Therefore, there was a dire need to analyse the effects of PsyCap in
teachers. Similarly, TP relied on the perceived views of teachers on the fulfilment of
employers’ promises as well as their own promises. These perceptions regarding the
fulfilment of promises as viewed by the teachers depend, among other factors, upon
attractive CSAs.
Researchers had mostly elaborated the principal-agent link in organizations regarding
their attitudinal outcomes rather than focusing on behavioural outcomes, such as agent
productivity. PsyCap studies had discussed mostly interventions like short term trainings
and the role of leadership in building PsyCap and, resultantly, individual output.
Meanwhile, psychological contract studies had emphasized the repercussions of violating

21
psychological contracts rather than PCF (Katou & Budhwar, 2012). However, the current
research discussed the fulfilment of institutional commitments in the eyes of teachers and
its indirect impact on TP.
The literature relating to the compensation system and its attributes, such as
recognition and performance, work-life balance, advancement and career avenues, salary
and benefits, and pay-raise policies, and their impact on TP was reviewed in detail in
Pakistan. Some of the relevant findings setting the theoretical foundation for this study are
summarized herein.
Compensation primarily determined by certain personal attributes (Ding, Fields, &
Akhtar, 1997) in contrast to the market-oriented economies (Adams, 1965). In transitional
economies and in developing countries, the emphases on seniority and flatter wage
structures were shifting to a productivity-based compensation system (Alexashin &
Blenkinsopp, 2005; Chatterjee, Pearson, & Nie, 2006; Glinow, Drost, & Teagarden, 2002).
While structuring remuneration systems, it was essential to consider workers’ priorities
and the extent of alignment amongst employees’ expectations to be used in the
aforementioned system while considering their perception of the extent of its actual use
(Dyer et al., 1976; Lawler, 1971; Wu et al., 2011).
If an employee lost confidence in the compensation system, this could lead to the
employee’s demoralization and disturbance, which mainly originated from a strong feeling
of unfairness and dissatisfaction, which, in turn, was likely to lower his performance
(Bozionelos & Wang, 2007). The performance would decrease when employees believed
that employers were giving small pay raises and reduced growth opportunities while doing
nothing to improve the current benefit scheme.
Contrarily, there might be situations in which workers at all levels might feel that their
employer had, in reality, delivered better than what was agreed (e.g., when workers were
given an unexpected pay jump, better growth avenues, or an improved benefit scheme). In
these instances, the workforce might view a favourable disparity in the social exchange
agreement (including the psychological contract). Consequently, such developments
seemed to strengthen or extend the psychological contract. Further, as this happened,
employees might try to reciprocate by improving their performance (Homans, 1961a;
Wayne, Shore, & Liden, 1997).

22
Teaching was an essential component of universities (Li & Kaye, 1998). Accordingly,
this research focused on two different individual constructs – PsyCap (Luthans, Avolio, et
al., 2007) and PCF (Robinson, 1996; Rousseau, 1995) – as ways in which CSAs affected
TP. In this research, compensation systems were differentiated from impacting PsyCap and
PCF and, resultantly, employee performance. CSAs represented the HC value of an
employee in an organization (Thierry et al., 2001).
The significance of employee compensation systems was examined from the
perspectives of the economic, social, political, and psychological roles it played. The
fulfilment of basic needs fell into the category of the economic role, followed by the
fulfilment of status and self-esteem needed under the social role. The political role of
rewards made an individual feel powerful and in control of resources and that he/she had
the ability of significant decision making. Additionally, the psychological role of
compensation systems helped to promote desired employee behaviour (Adeniji, 2009).
According to a document published by UNESCO (2006) called “Strategic Framework
for Teacher Education and Professional Development Pakistan,” it was discussed that
funding institutions and agencies (both local and foreign) had advised Pakistan on its
underperforming public sector and teaching system.
Certain key issues, like weak accountability, poor incentive offerings, hopelessness
about their career progression, and demotivation, were identified as core problems being
faced by teachers. A robust and performance-driven compensation system in institutes of
higher learning was required to address these concerns and to promote a stable and quality
human resource supply. The HEC of Pakistan introduced the Tenure Track System (TTS)
in 2002, which linked teacher pay to TP and offered teachers a market-based salary
structure. It offered attractive performance-based rewards and repute to the teachers. It also
aimed to promote a culture of research in HIEs by providing appropriate resources and
support. Like all revolutionary reform mediations in a closed system, TTS was
encountering intermediary transformations.
In the education profession, compensation was linked with input (i.e., one’s skill set
and time spent working), rather than outcomes. Such drivers of earnings were criticized
due to a lack of a results-orientated approach. Migrating to an earnings-based linking salary
to certain indicators of performance to some extent resulted in the improvement of the

23
prevailing system (Azumi & Lerman, 1987). Some of the advantages of performance-based
compensation systems pointed out by Azumi and Lerman (1987) included (1) rewards in
the form of professional development opportunities; (2) enhancement of teacher and
educational institution performance by introducing good governance; (3) implemented
coherent and common teacher-management goals; (4) critics of common compensation
systems are of the opinion that such structures are unfair to teachers who were highly
motivated and efficient but remain unrewarded for their extra efforts; (5) performance-
based compensation systems were highly equitable; and (6) these compensation systems
may attract buy-ins from political leaders and the public for reforms in the public sector
education to bring credibility and efficiency to the system.
Since this research work concentrated on TP as an output variable and because
teachers were the backbone of the education delivery chain (Balcázar & Ñopo, 2016;
Sarrico & Alves, 2016), this study could benefit up to 34,444 teachers (comprising 9253
PhDs and 25,191 non-PhDs) and 1.3 million enrolled university students at over 170+ HEIs
in terms of improvements in TP. According to HEC Vision 2025, the total student
enrollment in Pakistani universities in 2024-25 expected to increase to 3.8 million.
Similarly, the number of faculty members in HEIs was expected to increase to 26,759 in
public HEIs and 11,555 in private HEIs.
The trend for the fast-paced adoption and acceptance of innovative ideas, solutions,
and technological advancements across all economies and sectors was increasing, and
organizations were becoming more and more competitive in today’s tough market (Kalfa
& Taksa, 2012). This was a tone setter for university students who could equip themselves
in line with industry expectations and get better jobs as a result (Hyslop & Sears, 2006).
Accordingly, HEIs had shifted their focus from the elite to the masses (Wilton, 2011) and
had adopted new management principles, despite major ideological objections from
academic staff (Leathwood & Read, 2013). Managerialism and its dynamics, such as key
PIs, ratings, and quality control processes had led to graduate employability concepts
(O’Byrne & Bond, 2014).
The HEC is running various scholarship programs as part of its human resource
development (HRD) agenda. This research highlighted useful information to support the
decisions made by the HEC in assessing and identifying any adjustments required for its

24
ongoing and new programs. The researchers were explored efficient means to uplift the
standard of education. It was necessary to equip the future of the nation with the latest and
highly useful techniques and tools to meet the challenges of evolving digital world.
The Government of Pakistan (GoP) had outlined Vision 2025 which, among other
things, envisaged the major expansion and quality enhancement of education and
recommends raising the education budget allocation to 4% of Pakistan’s GDP by 2018 and
introducing comprehensive reforms (Economic Survey of Pakistan, 2016). This study
likely to aid the ongoing efforts of governments in achieving their visions as well as
meeting international commitments of Pakistan towards SDGs. Higher education was
gaining importance again, with post-2015 SDGs focusing on making higher education
more accessible (Ilie & Rose, 2016).
The HEC aimed not only to maintain its current accomplishments but also to introduce
additional measures that were consistent with the views expressed in the GoP’s Vision
2025. The harmonization of HRD needs with economic needs requires the active and vital
support of all HEIs. The HEC had designed a three-tiered framework of tertiary education.
TIER 1 included developing Pakistan’s top 30 HEIs, TIER II included providing HEIs with
funding from both public and private sources and maintaining diversity within HEIs. The
number of TIER 1 and TIER II universities was envisaged to increase to 300, and it was
expected that these institutions would enrol 7.1 million students. TIER III represented
affiliated colleges that presently allowed easy access for students (Government of Pakistan,
Higher Education Commission, "HEC Vision 2025", 2019, pp. 1-2).
The enhancement of the quality higher learning needs a considerable boost in the
development of faculty through local and global programs. According to annual report of
HEC in 2015, it had succeeded in having 28% of HEI faculty being PhD degree holders.
Over the next decade, the HEC hoped to add more than 95,000 teachers and aimed for 40%
of all HEI teachers to hold PhDs from indigenous and globally recognized HEIs.
Pakistan’s population of over 195 million, which was growing at a rate of 1.89% and
of which the majority fits in younger age profiles, indicated how strong the continuously
growing the demand is for various changes in the years to come (Economic Survey of
Pakistan, 2016). The enterprises needed a continuous supply of talented individuals who
were polished and prepared by the HEIs in order to succeed in the marketplace (Bleiklie et

25
al., 2013). Since education was one of the key ingredients of human and economic
development, there was a compelling need to conduct research focused on education,
particularly university education to (a) increase the quality and outreach of education and
(b) bridge the industry and academia gap to build a knowledge economy and achieve
sustainable economic growth.
Ylijoki (2003) concluded that academic culture, having built-in freedom and
autonomy traditions, undermined by the strange culture of managerialism, which used its
own commercialism concepts, such as the “client,” “quality assurance,” and “products.”
Dobbins, Knill, and Vögtle (2011) explained that new public management (NPM) roll-out
was also causing local HEIs to revisit their missions, visions, and governance systems.
However, national HEI systems were pre-set by nation-specific regulatory and
coordination setups, which, to a large degree, indicated historical, institutional, and
national developments and the economic goals of the country (Neave, 2003). This study
provided an empirical evidence and recommendations to enhance TP through governance
and compensation structure reforms.
Why teaching was a less preferred option as a profession was a question requiring a
detailed examination? In order to allow this profession to grow and compete with other
professions in the job market, attractive pay, contractual terms, and job security would need
to be incorporated (Altbach, Reisberg, & Pacheco, 2013).
Such a situation, especially when taken in conjunction with the preceding discussion
and necessitated the establishment of structured research to assess the extent to which
teachers’ PsyCap and PCF lead to a desirable level of TP.
A compensation system and its attributes (e.g., recognition and performance, work-
life balance, advancement and career avenues, salary and benefits, and pay raise policies)
and their impact on TP have been reviewed in Pakistan. In this study, compensation
systems differentiated from impacting PsyCap and PCF and the resulting TP. CSAs
represented the HC value of staff in an entity (Thierry et al., 2001).

1.5 Problem Statement

TP was a thoroughly researched and explained concept, but the impact of CSAs on
this variable was unclear due to a lack of investigation despite the acknowledgement of its

26
significance (Decramer et al., 2013). Some contemporary studies had encouraged others to
carry out research on associated variables, like PsyCap, PCF, and SC, on TP (Avey, 2014a;
Luthans, Youssef, & Avolio, 2015; Wang, Chen, & Hsu, 2014). Moreover, these variables
have not been analysed for HEIs in Pakistan. This knowledge gap demanded that empirical
studies be conducted on these variables and that new findings be considered by
policymakers and stakeholders.

1.6 Research Objectives


In view of the preceding discussion and underperformance of teachers in HEIs of
Pakistan, investigating key factors behind non-appealing Performance Indicators (PIs) i.e.
academic, research, and service of universities operating in public and private sectors in
Pakistan and their relationship with monetary and non-monetary CSAs in the backdrop of
theoretical research was of great significance. Accordingly, broad research questions which
have been framed and used as a basis for setting the objectives of this research are:
1. How did CSAs impact TP?
2. To what extent, if at all, did PsyCap and PCF play a mediating role between CSAs and
TP?
3. To what extent, if at all, did SC play a moderating role between CSAs and TP?

This study discussed the significance of CSAs and SC in HEIs and their impact
(mediating or moderating) on PsyCap, PCF, and TP. The study aimed at gaining
information from the full-time faculty members/teachers of HEIs in Pakistan with the
objective to study that how CSAs affect their performance. More precisely, current
research is meant to achieve the following objectives:
 To investigate the role of CSAs in enhancing TP.
 To evaluate the role of CSAs in enhancing the PsyCap of teachers.
 To examine the role of CSAs in enhancing the PCF of teachers.
 To evaluate the extent to which PsyCap and PCF mediate the relationship between
CSAs and TP.
 To investigate the moderation of SC on CSAs and TP.
 To bridge the literature gap in the relevant field with reference to studies in Pakistan
and to serve as a baseline for further research and exploration.

27
1.7 Study Contributions
This section manly highlights some of the pertinent contributions this research was
expected to offer in terms of (a) enriching or bridging the gap in the theoretical literature
and (b) providing practical suggestions and guidelines for the policymakers dealing with
HEIs particularly in Pakistan and generally for the countries in similar development span
to improve the situation.
TP is a thoroughly researched and explained concept, but the impact of CSAs on this
variable had not been researched extensively. Recent studies have encouraged others to
research the effects of associated variables, like PsyCap, PCF, and SC, on TP Moreover,
these variables had not been analysed in HEIs in Pakistan. There was a compelling need to
consider CSAs as a significant source of productivity and efficiency enhancement in HEIs
in Pakistan. The present research also aimed at contributing towards bridging the literature
gap highlighted herein.
There was a strong desire among the stakeholders of public and private universities to
diagnose the problems which are currently underpinning the performance of universities,
especially the unsatisfactory rankings given to them by local and international
organizations. CSAs (among other factors) could have a significant bearing on teachers’
motivation and commitment to improving their productivity. However, so far, there had
been no literary research providing details about this issue in the context of Pakistan.
Therefore, there was a compelling need to bridge this literature gap, as doing so could add
much value to public and private universities’ compensation and performance management
systems. The current research explored CSAs and TP measures.
It also assessed teachers’ perception regarding CSAs and their impact on TP in
departmental and overall university performance. In addition, different concerns and
challenges regarding the optimization of CSAs were identified and used as bases for
outlining effective guidelines and recommendations for the decisive administration of
universities in Pakistan. The goal of creating such guidelines was to provide a basis for
enhancing the PsyCap and PCF level of teachers to high and sustainable levels so that the
desired standards of higher education quality achieved in higher learning institutions (both
government and privately owned).

28
The outcome of this research expected to gain interest of a diverse type of readers
across the world (particularly those in developing nations) in the areas of HRM generally
and in the areas of compensation and performance management particularly in the
following ways:

 The compensation system for performance improvement employed by the


organizations to improve employees’ PsyCap and PCF, thereby supporting
organizational missions, visions, and strategic objectives to achieve the desired
performance, which has been a subject of discussion among management,
teachers, researchers, and consultants for a number of years.
 The theoretical importance of this research was that it endorsed and added
existing empirical literature concerning the basis of the total CSAs-PCF-TP,
total CSAs-PsyCap-TP, and CSAs-SC-TP relationships.
 This research especially oriented the regional higher education authorities, such
as the Ministry of Higher Education, Afghanistan; the Department of Higher
Education, India; the Ministry of Higher Education, Sri Lanka; the HEC of
Pakistan; the University Grant Commission of Bangladesh; the Department of
Higher Education, Maldives; the Department of Adult and Higher Education,
Bhutan; and Ministry of Higher Education and Highways, Nepal, along with
other policymakers, towards a compensation system that creates more links to
compensation, PsyCap, PCF, and SC for TP, thus enabling these groups to
attain their short-term and medium-term plans.
 It oriented the HEC of Pakistan and other policymakers towards a compensation
system that created more links of compensation to TP, thus enabling the
attainment of the goals outlined in Vision 2025 of Pakistan.
 It provided guidelines for society in general and policymakers to revisit and
improve the protocol and funding programs for teachers and to restructure
compensation systems and initiatives. Such compensation systems and
initiatives include the TTS in Pakistan; the 7th Pay Commission remunerations
offered to federal university teachers in India for addressing the salary hike for
nearly eight-lakh teachers and academic staff of HEIs; the revision of salaries
for university teachers in the HEI in Sri Lanka; salaries increases (of up to 35%)

29
imposed by the Ministry of Education, Maldives; and the Pay and Allowances
Revision Order 2014-15 in Bhutan. All reforms should be made on just,
equitable and acceptable terms.
 In due consideration of the outcome of this study, faculty morale and motivation
was likely to enhance the output of research and teaching in HEIs (in Pakistan
in particular as well as those countries having similar profile in general).
 The outcome of the research was also expected to provide a basis for exploring
and implementing non-financial compensation and work-life opportunities.
 HEIs had a significant effect on the social and economic fabric of society.
Therefore, it was urgent that we identify, evaluate and improve the policies
regarding teachers, who were the most important stakeholders in the
universities (Bleiklie et al., 2013). Especially in the subcontinent, this study also
provided guidelines to foreign governments and agencies, such as the USAID,
the DFID, the UNDP, etc., to channel and re-align their funding and technical
assistance to developing countries, like Pakistan, in a productive, focused, and
efficient manner.
In this study, the existence of appropriate CSAs (which include acceptable forms and
mixtures of compensations, policies for granting pay increases, and pay levels and benefits)
have been examined. Teachers’ PsyCap constituents (including self-efficacy, hopefulness,
and optimism) have also been measured. The present research also evaluated whether better
CSAs increase the level of PCF. Furthermore, teachers’ PCF levels that comprise teachers’
ability to perceive whether the universities and their own promises are being fulfilled has
been investigated. It is found that once a teacher’s PsyCap and level of PCF increases,
he/she performs in an envisaged manner. This confirms that CSAs are viewed as having a
direct effect on TP. Moreover, the SC (in which the term “social network” refers to one’s
network outside the faculty organization and in which “social trust” includes support from
within an organization) of teachers, along with the changes in viewpoints in relation to the
proposed relationship (positive or negative) was observed.

30
1.8 The Layout of the Thesis
The current study structured in the six chapters briefly described below:

Chapter 1 provided background knowledge about the research problem, a briefing on the
problem statement, and the justification for the present study together with the study’s
objectives and its anticipated theoretical and practical contributions.
Chapter 2 discussed about holistic analysis of the available literature on the variables of
interest by studying diversified set of definitions, quantitative studies, and the theory
encompassing the relationship between these variables. After reviewing the literature, gaps
have been identified and have served as bases for the design of a conceptual model.
Towards the end of this chapter, a hypothetical framework has been proposed to define the
basis of the relationship between variables.
Chapter 3 explained the design, approach and methodology of the study. This part lays
out the path that is to be utilized to testing the hypothesized framework. This chapter also
contains the operationalization of the variables and their instrumentation to clarify which
perspective forms of the variables have been used.
Chapter 4 provided the empirical solutions obtained from the statistical examination of
the data, which is gathered from the inbound faculties of HEIs in Pakistan. It also provides
a description of the few demographics of the respondents who were involved in this
research exercise.
Chapter 5 described the findings summarised using the investigation performed in the
preceding chapter and related the same to the defined problem statement and to the prior
research.
Chapter 6 presented a conclusion drawn based on the research findings. It also illustrated
the many practical and theoretical implications of this research work. It also considers the
underling limitations of the research under consideration and highlight recommendations
for researchers and practitioners.

31
CHAPTER 2
LITERATURE REVIEW AND FRAMEWORK

32
2 Literature Review and Framework

Literature Review and Framework


According to Webster and Watson (2002), a good review of previous literature serves as a
basis for advancements in literature. It not only helped with the development of theories
but also played a vital role in exposing hidden aspects of previous research. This chapter
provides a critical analysis of significant research involving the concepts under
consideration in the present study. Also, this section helped to minimize potential
weaknesses in the previous research.
This chapter comprised a literature review of seven key concepts, starting with (1) an
overview of compensation and employee performance, (2) TP in terms of teaching,
research and scholarly contributions, (3) CSAs encompassing total compensation concepts,
work-life, appreciation, career and development avenues, pay increase policies and
practices, compensation system in HEIs in Pakistan and related experiences, (4) PsyCap
constituting self-efficacy, hope, optimism and resiliency, (5) PCF, and (6) SC. Formal
definitions, as well as empirical assumptions about the proposed linkage between such
variables from earlier studies, are also explained in the later part of this section. In the end,
the hypotheses developed on the basis of previously suggested theories presented.

2.1 Compensation and Employees Performance


It is important for all sectors in general and services sector, in particular, to follow and
implement HPWS. HPWS incudes "employee ability-enhancing practices (such as training
and skill development) (A), employee motivation-enhancing practices (including high pay,
career development and top-down information sharing) (M) and practices that give
employees the opportunity to involve in decision making (O)" (Appelbaum et al., 2000).
HPWS such as career and development avenues, flexible work schedule, and performance
bonuses provide a platform to enhance motivation and performance of the employee (Jyoti
& Dev, 2016). Same supported in the service sector of India (Ananthram et al., 2018). It
also found in Spanish hotel services that HPWS comprised horizontally and vertically
synchronized human resource practices improve employees' productivity (Úbeda-García et
al., 2018). Moreover, it was usually observed that service-oriented HPWS such as the
training system, the performance evaluation and compensation structure indicates a major
focus on service delivery and hence boosts staff motivation to demonstrate quality

33
performance (Hong et al., 2013). HPWS (HPWPs) was an area under research especially
in services sector (Combs et al., 2006) because it has the potential to enable service sector
employees to perform better (Batt, 2002). Perhaps HPWPs that mitigated stress, for
instance; flexible working arrangements (Baltes et al., 1999), were of greater significance
in service sector as opposed to manufacturing outfits (Combs et al., 2006). In another study,
it was reported that the satisfaction with work-itself, better supervision and satisfaction
with compensation positively affected organizational commitment of teachers working in
public sector universities of Pakistan (Malik, Nawab, Naeem, & Danish, 2010).
According to social exchange theory perspective of principal-agent relationship (Shaw
et al., 2009), two diverse groups of HRM practices: (1) investing and inducing practices of
HR management (such as better development and more salaries) that boosted employees
expected performance through motivation enhancement (Tsui et al., 1997) and (2) HRM
expectation-enhancing norms (such as employee performance schemes and individual
performance assessment) that enhanced overall productivity by stressing on employer's
expectations from employees (Shaw, Delery, Jenkins Jr, et al., 1998). The social exchange
relationship referred as give and take. Employees would be motivated if they were
rewarded fairly and sufficiently through implementing the diverse HR practices. Talent
management practices (such as hiring, career and development and compensation)
positively affected employee performance in service sector organizations (Bibi, 2019).
Previous literature described the role of CSAs on employee performance (Decramer
et al., 2013; Durant et al., 2006; Gerhart et al., 1992; Greller & Parsons, 1995; Kerchner &
Cooper, 2003; Kershaw & McKean, 1962; Oliver & Anderson, 1995; Pfeffer & Baron,
1988; Skinner, 1969).
Compensation as a dominant HRM practice function in any organization (Noe,
Hollenbeck, Gerhart, & Wright, 2017, p.11), including universities. The link between
productivity and compensation was the focus area of the reinforcement theory (Skinner,
1969), and it was based on the constructs and methodologies of modifying HR relationship
management (Luthans, 1973; Stajkovic & Luthans, 1997). Higher performance was more
likely to be found when effective compensation systems were in place than when less
effective compensation systems were in place (Durant et al., 2006; Gerhart et al., 1992;
Irtwange & Orsaah, 2009; Shaw, Delery, Jenkins, et al., 1998). An individual’s

34
performance mainly drove by financial incentives (Durant et al., 2006). Innovative
universities often modify a fixed salary program into a variable salary program as per
teachers’ preferences. Organization's performance mainly drove by employee's skills and
behaviours through compensation and incentives (Katou & Budhwar, 2015).
A pay-for-performance scheme, linking employee performance to pay, as an
organizational control influenced employee’s behaviours, performance, or both (Oliver &
Anderson, 1995). Around the turn of the 20th century, developed countries revised their
compensation systems to reduce inequities and to enhance the output of employees
(Kerchner, Koppich, & Weeres, 1997; Kershaw & McKean, 1962). Such a pay system
ensured that teachers' similar amounts of work experience and qualifications received
similar amounts of pay (Podgursky & Springer, 2007). According to Podgursky (2010), a
revised compensation system critically analysed by standardizing compensation, denying
public school administrators’ power to change an individual teacher's salary to account for
productivity and labour market changes. An increasing national interest in other well-
designed and effective compensation systems observed in educational institutions when
compared to traditional compensation system.
Ineffective compensation systems failed to provide teachers with adequate incentives
to convince them to perform well (Johnson & Papay, 2009). Podgursky (2008) described
that the rigidities and inefficiencies that aroused from a compensation system favour more
effective and acceptable compensation settings. A compensation system that accounted for
performance and labour market realities enhanced individual and organizational
productivity in educational institutions.

2.2 Teacher Performance (TP)


Promoting employee performance was becoming a greater challenge than it was
before. To improve employee performance, organizations must give their employees a
working atmosphere where they were motivated and committed on one hand and also had
job security and career development opportunities (Lester & Kickul, 2001). Previous
literature supported the view that profitable institutions devise new approaches to recognise
and invest in their human resources (Boštjančič & Slana, 2018). Performance is defined as
“the actual results achieved compared to the desired results” (Yu, Hamid, Ijab, & Soo,

35
2009, p. 815). Arreola (2004) argued that teacher evaluation by scientifically assigning
numbers to the teachers as a way of highlighting their differences in terms of various
characteristics (as cited in Ebel, 1965, pp. 454-55).
Balance Scorecard (BSC) as an employee performance management tool used
particularly in commercially driven organizations (Karathanos & Karathanos, 2005). BSC,
suitable for profit-oriented organizations and less relevant for measuring TP in the
education sector, which posited by others (Yu, Hamid, Ijab, & Soo, 2009). However, BSC
may be tailored to address the requirements of HEIs. Academic performance described as
an “individualized, self-managed and intrinsically motivating, with high levels of personal
commitment” (Bellamy, Morley, & Watty, 2003). High and non-cohesive workloads
observed to be counter-productive for TP; therefore, a balance was needed to be maintained
in this regard. (Kenny & Fluck, 2014).
University teachers’ performance assessments mechanisms explored in several
different ways such as students' feedback (Bedggood & Donovan, 2012). Faculty
performance measurable "in terms of teaching, research, and service outputs" (Cashin,
1996; Weistroffer, Spinelli, Canavos, & Fuhs, 2001). A study done by Kenny (2017) found
that a consensus among the faculty of HEIs that overall academic performance needed to
be improved. Of those surveyed, 75% agreed that institutional standards required upgrades
in the areas of teaching, research and/or social service of HEIs. All type of assessment
indicators to compensate must be easy to understand and compute (Brown & Reilly, 2009),
and there must not be too many of them (Zingheim & Schuster, 1997).
TP generally encompassed performance regarding teaching, research, and service.
Adopting and implementing these three categories of performance evaluations often varied
from university to university and from department to department within a single university.
Some universities gave more weight to research, some emphasized teaching over research,
and some placed equal importance on research and teaching. Teachers in various
departments and various universities had varying professional requirements, and
resultantly, their levels of compensation also varied (Braskamp & Ory, 1994a).
Some universities still relied on supervisors’ appraisal to determine TP; such
universities lacked clear criteria for TP. This was an unacceptable way to appraise.

36
Teachers must accept appraisal criteria so that they can proceed in the right direction
(Cashin, 1996).
Various scholars studied the notion of TP assessment (Arreola, 2004; Sapone, 1980),
but many did not suggest specific criteria or measures that should be used to offer rewards
referred (Camp et al., 1988). Some scholars focused only on teaching performance while
ignoring the research and service. However, it should be noted that the performance
parameters have been introduced into HEIs in Pakistan through TTS during last decade.
Presently, the acceptable framework of performance measured among the various
departments, faculties, and institutions of the higher education sector were unclear and
inconsistent. However, comprehensive and elastic models for TP measurement can be
established to fit an array of departments and faculties within universities. This study also
used a model that considers all indicators of TP, including the quantity and quality of
teaching, research, and service. This model permitted teachers to focus on their areas of
interest and competence. One of the key components of CSAs, an incentive scheme, could
be linked easily to productivity.
A comprehensive TP measurement system involved meeting criteria measured by
reliable assessment tools and developing a consensus regarding common values through
political settings (Arreola, 2004). According to Ebel (1965), a complete TP system
included the organized appraisal of pertinent TP to ascertain the level to which a teacher’s
overall performance was consistent with the departmental and institutional goals. A TP
mechanism based on reliable data helped to make several human-resources-related
decisions, such as those regarding promotions, pay, and providing learning and
development opportunities. Data based on key performance indicators (KPIs) in teaching
depicted the clear relevance of TP. A classical approach to appraising teachers’ actions
included examinations of their teaching, service, and scholarly work/research, as explained
in the sections below.

2.2.1 Teaching
Teaching referred to a classified level of interactions with the pupil which enabled,
encouraged, and enhanced his or her learning. Components of TP included knowledge of
the material, content-transferring competencies, syllabi-content-framing expertise, and

37
course organization. TP measured applied by various researchers (Weistroffer et al., 2001)
include: (1) a number of courses taught to undergraduate and graduate students; (2) a
number of credit hours taught; (3) a number of additional or new courses taught in a year;
(4) a number of course developments made during a year; (5) a number of independent
study projects completed in an academic year; (6) a number of new
representations/nominations in research committees; (7) a number of research committees
served during the past academic year; (8) student evaluations; (9) peer evaluations (if
available); (10) external recognition; and (11) the willingness of the teacher to show
flexibility towards his departmental or college needs (e.g., becoming an instructor for less
interesting subjects; lecturing at unfavourable times; volunteering in experimental methods
of teaching, like distance learning, team training, and coaching; etc.) (Weistroffer et al.,
2001).

2.2.2 Service
Service performance comprised community service, institutional service, consulting, and
advising (academic, career, and counselling) activities. When providing community
service, teachers used their expertise to serve society without an extrinsic (except when
providing a consulting service). College (faculty) service, also referred to conducting
administrative tasks (non-teaching and/or non-research activities), were also carried out to
meet organizational goals. Such tasks were not essentially linked to, nor do they relied on,
a teacher’s specialization. Academic advising involved suggestion, on an individual basis,
to students their educational undertakings, while career advising involved suggesting
prospective job avenues to students. Moreover, counselling as the provision of guidance to
students who needed help addressing private, emotional, and psychological fears.
Though there were many approaches to understanding the notion of service, the
current study adopted the common meaning advocated by Braskamp and Ory (1994b) to
be principally operationalized. For this reason, service signified administrative work and
offering a level of expertise to society. As such, its appraisal comprised service to the HEI,
service to the occupation, communal assistance, supportive premiums, and the teacher’s
extent of reaching out to help others. Furthermore, also as proposed by Braskamp and Ory
(1994b), good service generally means that a teacher serve fairly to their HEI, to the public,

38
and to their occupation. In the present study, service productivity was categorized as (1)
immediate HEI service, (2) service to the occupation, and (3) service to society (Rayburn,
2011). Seven faculty evaluation methods to assess their performance included; (1) written
evaluations (2) evaluation measured (3) interviewing (4) Video recording and making
observations (5) measures of reputation, value, and impact (6) accomplishment and result
indicators and (7) portfolio and records (Braskamp & Ory, 1994b).
Service was categorised into four classes. The first class comprised actions like (1)
leading or serving committees, (2) guiding student groups, (3) carrying out managerial
tasks, and (4) giving another valuable service to the faculty or to the HEI (Weistroffer et
al., 2001). The second class comprised actions like (1) serving on educational journalistic
panels, (2) reviewing research for university or conferences, and (3) vigorous involvement
in educational and specialized establishments, such as occupying a position on and/or
attending various boards or working groups of such institutions, and being an organizer or
chairperson of conferences or seminars.
The third class included the use of a teacher’s talents and skills outside his
institution and profession to serve the community. As noted in Braskamp and Ory (1994b),
this special kind of service usually included (1) giving mechanical support to civil and non-
civil institutions; (2) developing public administrative reforms for the government at
various levels; (3) participating in media programs, including appearing as an expert; and
(4) attesting before lawmakers (Weistroffer et al., 2001).

2.2.3 Scholarly
Scholarly activities were linked to a teacher’s field of specialization. These
activities included proficiency, discovery, dissemination, and translation activities
(Arreola, 2004). In the past, how to measure research productivity was debateable
(Altbach, 2015), and this still an issue for some HEIs. Generally, research performance
measures comprised count of published articles, the number of study grants secured from
external sources, and the number of MS and PhD scholars produced (Taylor, 2001). Now,
teachers were motivated on maximizing the quantum of papers they produce and the
quantum of research grants they receive (Taylor, 2001). Some scholars shown their
concerns over the higher education quality like performance indicators, suitability for the

39
intended purpose and value addition (Barnett, 1992). From the viewpoint of many HEI,
research performance led to career development (Court, 1999; Sowell, 1990).
Declines in the quality of TP (research and teaching) had dangerous consequences
for the macro environment, especially in today’s knowledge-based economy. In Pakistan,
higher education helped much of the country’s population (especially youth) to augment
their expertise and knowledge. As a result, the nation was more competitive internationally
and produced better economic output than in the past. So, it can be concluded that with
worse teaching and research quality, the desired economic targets cannot be achieved. If
the TP of university teachers was not adequate, graduates would be underqualified.
According to Romer (1989), poorly developed human resource would resultantly lower
HC and economic growth.
According to Taylor (2001), use of outside research proceeds, volume of research
publications and accomplishments increased in recent years while determining research
allocation targets for HEIs. However, any faculty member can attempt to receive the best
teacher reward, due to tough competition.
The application of performance indicators should instead encouraged individual
faculty members to gain new skills and improved their leadership concerning their teaching
and research duties (Taylor, 2001). Showing lip service and window dressing must be
stopped to bring about functional rather than cosmetics changes by building a culture
recognizing teaching and research as a built in feature of teacher life (Taylor, 2001).
Oromaner (1997) stated that now HEIs including other stakeholders demanded
accountability in the form of performance indicators (as stated in Cave, Kogan, & Hanney,
1989). The introduction of teaching and research indicators impacted teachers in different
ways. The apprehension conveyed by many researchers (Barnett, 1992; Cave, Kogan, &
Hanney, 1989; Morrison, Magennis, & Carey, 1995; Taylor, 2001), the initiation of TP
assessment measures would exert pressure on and motivated teachers to focus on meeting
institutional goals. In meeting increased tangible goals, teachers were under pressure and
should be motivated by compensation systems.
The alignment of results with what was anticipated measured by the managers for
performance control (Ittner, Larcker, & Randall, 2003). As an employee’s productivity was
critical, the appraisal and management of it given much consideration. An employee’s

40
performance was a result of effort, capabilities, and direction (Sudarjat, Abdullah, &
Sunaryo, 2015). Contextual performance and task performance were two major
components for personnel selection (Rotundo & Sackett, 2002). Several definite strategic
factors guide the choice of performance indicators used to determine which rewards should
be given to an employee. These were as follows:
1. Zobal (1999) stated that criteria for receiving a reward was not be technical and
instead must be easy to understand (as cited in Liccione, 1997), as Zobal (1999)
views this as crucial for achieving group or departmental goals (as cited in Shaw &
Schneier, 1995).
2. This was also pinpointed that use of few indicators is found to be more effective
to gauge the output of members (Zingheim & Schuster, 1997). It was suggested that
three to five indicators should be used (Zingheim & Schuster, 1997).
3. Goals must be smart, allowing employees to have some control over them.
According to the performance pay award scheme (Weistroffer et al., 2001), merit pay
could be ascertained on the basis of the following formula: Teaching score × Teaching
coefficient + Research score × Research coefficient + Services score × Services coefficient.
In this equation, the coefficient of each category computed based on the characteristics
deemed important by the university. It was found that, in many cases, faculty incentives
were linked more closely to research performance than the other two TP categories
(Diamond & Adam, 1998; Tuckman, 1979). Kasten (1984) pointed out the following
reasons for the weak link between teaching and faculty rewards:
(1) TP relied on more than standard measures, for instance credit earned, students’ grades,
and students’ feedback.
(2) There were still differences among the departments within any given HEI in terms of
what indicators should be used to measure the service quality of teachers.
In the aforementioned sections, three disparate facets have been explored that are
integral to any assessment of teachers' performance; teaching, research and administration
are all equally vital aspects that must be incorporated into an approach to evaluating
teachers' productivity. The research and teaching indicators to be used for TP appraisal still
a matter of debate in Pakistan’s higher education sector. Table 2.1 showed the teaching,
research, and administrative performances of the faculty as measured by HEIs in Pakistan.

41
Teaching and peer evaluation, research evaluation, and administrative/service evaluation
were assigned average weights of 50%, 40%, and 10%, respectively. Teaching includes
courses taught (15%), student evaluation (14%), peers evaluation (11%), new courses
developed (6%), and supervisor evaluation (23%), and includes the personal traits of the
teachers. Research performance indicators included the number of research publications
produced (22%), student supervision/research or project supervision (14.7%), research
funding/projects (5.5%), seminars/conferences/workshops (9%), and awards/honours
(5%). A detail image depicting the typology of TP indicators across different HEIs in
Pakistan obtained from HR managers, reports, and evaluation forms of various universities
presented in Appendix A with a summary shown in Table 2.1 on the following page.

42
Table 2.1: Performance Evaluation System for Teacher's Performance in Different HEIs of Pakistan
5 CIIT UMT PU UHS UVAS FCCU CUST
HEI Information

Type Public Private Public Public Public Private Private


Chartered by Federal Punjab Punjab Punjab Punjab Punjab Federal
Establish on 2000 2004 1882 2002 2002 2004 2015
Campuses 8 2 5 2 5 1 1
Faculties/Schools 6 7 13 5 3 6 3
Students 35,452+ 10,000+ 374,659 60,000+ 5,000+ 6347+ 3500+
Faculty Strength 2679+ 600+ 1102+ 4969+ 300+ 220+ 113+
Ranking 6th in HEIs & 23rd in 2nd in 9th in HEIs 10th in HEIs 20th in
3rd in General General HEIs & & 2nd in & 2nd in General
category in category 2nd in Medical Agriculture category
HEIs of in HEIs of General Sciences in category in in HEIs of W-4
Pakistan, 190th Pakistan category in HEIs of HEIs of Pakistan category of
position in Asia HEIs of Pakistan Pakistan Universities
as per QA Asia Pakistan in HEIs of
University Pakistan
Teaching Evaluation
Indicators
Teaching and Peer
Evaluation 35% 52.50% 50% 40% 67% 45% 20%-100%
1-Courses Taught 10% 17.5% Yes 17% Yes
2-Evaluation by Students 10% 10% 23% Yes No Yes Yes
3-Evaluation by Peers 10% No 12% No No No No
4-New Courses
Developed 5% No Yes Yes 8% Yes
5-Evaluation by Yes Yes No Yes Yes Yes Yes

43
Supervisor/Personal
Characteristics
Research Performance 50% 39% 50% 45% 33% 37% 20%-100%
1-Research Publications 25% 20% 30% 20% Yes 13% Yes
2-Student's Supervision 15% 12.5% 20% 10% No 16% Yes
/Research or Project
Supervision
3-Research
Funding/Project 5% 6.5% No 5% No No No
4-Seminar
/Conferences/Workshops No No No 10% No 8% No
5-Award /Honors 5% No No No No No No
Administrative
Performance 15% 9% 0% 15% No 18% 20%-100%
Note: TTS-Tenure track system CIIT-COMSATS Institute of Information Technology, Islamabad UMT-University of Management and Technology, Lahore PU-
University of the Punjab, Lahore UHS-University of Health sciences, UVAS-University of veterinary and Animal Sciences, Lahore FCCU-Forman Christian
College University, Lahore, CUST- Capital University of Science and Techno logy, Islamabad. In the columns, "Yes" indicates that the study found the existence
of concerned faculty performance appraisal indicator but its weightage is not given, and No" indicates non-existence of that indicator in the concerned HEIs. HEIs
information data obtained through HEC and concerned universities website.
.

44
2.3 Compensation Systems Attributes (CSAs)
Human resource (HR) functions improvised to address the concerns of different
stakeholders, especially employees. In most of the literature, the classical approach towards
human resource management (HRM) openly criticized. Recent literature demonstrated
clearly that HRM needed to add value instead of simply executing routine administrative
functions. After understanding the importance of adding value, some organizations started
to outsource the management of HR functions to those who can manage better with a
relatively low budget. This scenario suggested that HRM functions as an important
contributors to achieving organizational, department, and individual goals; the most
significant function among these was compensation management.
Belcher (1979) defined the term “reward” as a dual give-and-take between staff and
the employing organization, where the staff puts the effort in and receives pay, benefits,
and facilities from the employer. This signified that monetary and non-monetary
compensation as directly linked in a worker’s desire to exert effort and maintain a long-
lasting relationship with an organization. In the current research, compensation considered
as comprising salary, benefits, and performance incentive schemes (which include deferred
compensation plans, non-worked compensation, and compensation from work itself
(Michael, 2006). In practice, it was very close to the heart of the principal and agent in
many organizations (Banjoko, 2002).
Ivancevich (2003) proposed that monetary rewards included monthly salary and
obligatory or performance-based bonuses, as well as paid time off and life and health
insurance; non-monetary rewards include appreciation, recognition, and promotions. It was
found that the types of rewards mentioned above impact employee, departmental, and
institutional performance.
Compensation system design as a one of the fundamental tools through which
organizations invested in their employees; hence, a detailed understanding of this concept
in its totality, its components, and its attributes was crucial. Bolden et al. (2012) argued
that less powerful academics and researchers experience disadvantages under performance
management systems. Conversely, Anderson (2006) reported that some academics would
go the extra mile and would do research activities on their own.

45
Pakistan did not give due social reputation to academics. Their social reputation
could be increased, however, by boosting their status through enhanced funding, which
would give them more power and recognition.
Bentley, Coates, Dobson, Goedegebuure, and Meek (2013) observed that Japanese
academics, for instance, had a high degree of work satisfaction but were under high stress
at the same time. Academics in the UK and Australia were found to be highly stressed and
relatively unsatisfied.
Systemic commonalities and/or contrasts might exist across institutes of higher
learning. Each higher education system had its own definition for workload and academic
work as well as its own relative emphasis on salary and rewards and on teaching and
research (Cummings & Shin, 2014). Proper attention should be given to the wellbeing of
teachers, including their physical and mental wellbeing. They were required to be given
access to avenues for boosting their physical health by being given physical and mental
health sessions.
Education work environments deteriorated from the last few decades (Kinman &
Jones, 2008). Work-life balance was a pivotal aspect of productivity enhancement. Due to
budgetary constraints, teachers took on larger workloads and paid less than people in many
other professions (Fredman & Doughney, 2012).
Adequate funding was necessary to carry out teaching activities in an accountable
manner (Kenny, 2016). Utilizing a pay-as-you-progress model for rewarding research
grants was a proven way to motivate academics to be more results-oriented. A well-
rounded researcher could be seen attending and presenting at relevant conferences, and
he/she would have a presence in relevant journals and reports.

2.3.1 Total Compensation Concept


The total compensation concept inferred that the different components of a reward
package, including employee benefits, must be well planned, synchronised, and well-
adjusted to benefit fulfil the needs and aspirations of the organization’s workforce within
the overall policies and parameters applicable to the employing organization. Modern
reward administration acknowledged the worth of the regular cash take-home and
emphasized the entire reward structure as a significant contributing factor towards workers’

46
psychological energy and excitement as well as productivity. Compensation as a dominant
part of HRM in any university, often divided into intrinsic compensation and extrinsic
compensation (i.e., monetary and non-monetary rewards).
2.3.1.1 Monthly Salary Composition
Monthly salary composition referred to an employee’s base pay (direct cash salary
payments) and monthly allowances. Base pay is the sum of the worker's fixed income and
is central to any reward scheme. Monthly allowances included monthly compensation
granted to an employee aside from his basic pay used to cover normal personal expenses,
as opposed to business or official expenses. Monthly allowances usually paid to cover
expenses such as rent, utility bills, medical bills, cost of living, entertainment, etc. Periodic
allowances, in many situations, characterize the different components of basic salary with
the aim of receiving benefits according to the prerequisite rules.
Another effect of breaking up monthly compensation into basic and monthly cash
allowance could be the financial implications of determining entitlements for bonus
payments and provident fund contributions, which were sometimes commuted on the basis
of basic pay rather than gross monthly emoluments.
Certain parts of one’s monthly salary may not bring in any straight cash to the worker.
These may include rent-free accommodation, domestic servants, drivers, company-paid
phone and utility bills, etc. From the corporation's perspective, such expenditures constitute
a portion of employment costs and, therefore, considered as an essential part of the total
employee compensation package.
2.3.1.2 Annual Compensation
In addition to a monthly salary, some payments were made on an annual basis.
Examples of annual payments include leave fare assistance, bonuses, etc.
2.3.1.3 Non-Worked Compensation
Paid leave form a part of employment costs even though some employees might not
appreciate that the paid leave was an extra benefit to their normal monthly pay. Paid leaves
were generally classified into different categories, such as sick leave, casual leave, and
annual/privilege/earned leave. Depending on individual company policies, unavailed
leaves might or might not be cashable. The accumulation of unavailed leaves might either
be allowed or subject to a maximum limit.

47
2.3.1.4 Incentive Schemes
A portion of a total compensation package may be linked to define performance measures,
like the achievement of specific targets, commission, /brokerage targets, advisory fees, etc.
Incentive schemes were normally unique to individual organizations. Within the same
company, incentive schemes may vary between functions and managerial levels.
2.3.1.5 Deferred Compensation
This category encompasses a diverse group of plans which may generally be classified
as plans that offer benefits to staff or their families in case of certain personal losses, such
as the (1) plans for deferring compensation or benefits to the future; (2) plans involving
certain tax advantages for covered employees; (3) capital accumulation plans; and (4) a
combination of the above.
The benefit accruing to employees from the above forms of compensation plans were
generally not included in their current compensation. These indirect and deferred
compensation plans can be classified as (1) life and accident insurance coverage such as
group term life insurance, post-retirement death benefits, accidental death and disability
insurance and travel accident insurance; (2) medical expense benefits- "basic" hospital,
surgical, and regular medical coverage, major medical and comprehensive medical expense
coverage, dental expense benefits, prescription drugs, post-retirement medical benefits and
other medical expense benefits; (3) disability income benefits- disability assistance within
a year, disability assistance for more than one year, other disability assistance; (4)
retirement benefits- pension plans, provident fund plan, gratuity plan, continuation of other
employee benefits into retirement; and other benefit plans- company cars, club
memberships, vacation expenses, personal loans, car/house loans, security guards,
relocation expenses and long service awards.
The categorization of compensation into intrinsic and extrinsic compensation required
some consideration. Extrinsic compensation included non-monetary and monetary
incentives for achieving certain job performance levels and acquiring new skills and
knowledge. Non-monetary rewards included safety rewards, non-worked pay and
amenities.
Fringe benefits and employee benefits represent non-monetary benefits (Adeniji &
Osibanjo, 2012). These benefits could be categorized as either regulation driven or

48
discretionary. Monetary or financial rewards represent core compensation and included
basic pay, inflationary adjustments, and incentive pay, among other rewards. Monetary
rewards are awarded when an employee meets or exceeds job performance standards or
improves their job skills or knowledge. The reinforcement theory linked productivity to
compensation (Skinner, 1969). Financial incentives or core compensation attributes
assisted in assessing an employee’s performance (Durant et al., 2006). Innovative and
open-minded universities modified their compensation practices according to teachers’
preferences.
The literature review suggested that the two following main definitions of total
compensation (or the reward concept) should be followed:
Narrow Definitions. Virtually comprising compensation and benefits, and in some cases
including other tangible incentives (e.g., development).
Broad Definitions. Include everything that was "rewarding" about serving for an employer
or everything an employee receives consequently to his employment.
Traditionally, CSAs included salary and benefits. According to Heneman and Coyne
(2007), compensation included salary, benefits, and personal growth opportunities.
WorldatWork (2007) viewed total reward concepts by considering work-life balance
programs in addition to salary, benefits, and personal growth opportunities. WorldatWork
(2007) defined total compensation as the financial and nonfinancial yield given to
personnel in return for their time, abilities, exertions, and outcomes. It included the
thoughtful combination of the five main components given below in Table 2.2 into a
customized package that enticed employees to attain the firm’s desired output
(WorldatWork, 2012).

49
Table 2.2. Five Categories of Total Compensation
Compensation Benefits Development and Work-Life Performance & Recognition
Career Opportunities
Compensation Packages a worker Development is Work-life refers to a Performance means the
includes monthly utilizes to augment referred to as a mix of customized set of alienation of efforts at the
both fixed pay and the take-home learning experiences organizational policies and organizational, group, and
variable pay linked salary that a worker aimed at enhancing procedures together with a personal level with
to performance. receives. employees' practical vision actively supporting organizational vision,
skill set and employees towards mission and goals.
competencies. creating work-life balance. Recognition means
Career opportunities Examples acknowledging or paying
refer to a scheme for attention to worker’s
employees to proceed initiatives, behaviours, or
with their career plans performance.

Examples Examples Examples Examples Examples

1-Competitive Pay Medical Aid, 1-Internship 1-Flexi Work 1-Financial Recognition


Package Retirement and
Pension Benefits
2-Incentive 2-Overseas 2-Non-Worked pay 2-Institution Respects
Bonuses Assignment Differences
3-Career Ladder and 3-Fitness and Welfare 3-Performance Feedback
Pathways
4-Tutition Assistance 4-Consideratio for 4-Contribution and Work is
Dependents Valued

5-Attending External 5-Fiscal Support 5-Challenge and Interest


Seminars from My Job
6-Self-Development 6-Civic Engagement 6-Challenging Targets
Tools and Techniques

50
7-Coaching and 7-Administration 7-Manageable Workload and
Mentoring Engrossment/Culture Reasonable Work Pace
Opportunities Modification Mediations
8-Sabbaticals 8-Recognition Via Non-
Financial Means

Source: Five category model of WorldatWork, 2012

51
Compensation and benefits attributes were discussed in detail above. Three other attributes
of total compensation concept were discussed herein.

2.3.2 Work-Life
A customized array of organizational procedures could be part of a firm’s vision to
actively support its employees’ work-life balance. A firm may implement different
compensation systems to make employees feel comfortable and successful in both their
personal and professional lives. There are seven key classes of work-life balance initiatives.
These categories were salary, benefits, and other compensation management policies and
practices. An appropriate mix of these initiatives would target the concerns of all
stakeholders (i.e., employees, their families, and the organization itself. The seven major
categories were (1) flexible work, (2) non-worked pay, (3) fitness and welfare, (4)
consideration for dependents, (5) fiscal support, (6) civic engagement, and (7)
administration engrossment/culture modification mediations.
The objective underlying the implementation of a helpful work-life policy was to
make the employees more performance-oriented. Organizations that analysed the outcomes
of their work-life balance schemes concluded that such schemes fostered zeal and
enthusiasm among employees and enhanced their performance. If workers perceive to have
more grip over aligning their personal and professional lives, they complete their tasks at
work with more passion. In 50% of the organizations examined the by Work & Family
Connection, work-life plans enhanced employee performance. Many other surveyed
organizations have also documented the growth in employee performance after introducing
work-life policies and practices. Scott Paper Co., for instance, reflected that its work-life
scheme enhanced output by 35%. Regarding telecommuting, many researchers reported
performance improvement when staff members given the option to perform their
responsibilities conveniently at home or away from the office.

2.3.3 Performance and Recognition


Performance referred to the alienation of efforts at the organizational, team, and
individual levels with the organization’s strategic goals. This includes setting expectations,
exhibiting skills, making assessments, giving feedback, and consistently improving.

52
Performance consisted of the congruence of the firm’s, teams’, and employees’ exertion
toward the attainment of departmental and institutional goals. Performance could also be
thought of like the depiction of proficiency or competency. Performance feedback
described how successfully a task compared to KPIs, and the requirement of the results
achieved. Performance feedback enhanced the psychological mind-set of employees by
intrinsically motivating them to achieve results.
Recognition referred to acknowledging or giving focused attention to an employee’s
initiative, effort, or output. Appreciation meets employees’ core psychological need to
recognise their efforts and boosted an organization’s strategy by encouraging desired
performance which led to overall organizational performance. These could be formal or
informal and could be either cash or noncash rewards (e.g., giving shields, certifications,
plaques or offering dinners, etc.).
Recognition, as a way of paying special attention to desirable activities,
determinations, behaviours, or outputs. It fulfilled an internal psychological need for an
individual’s accomplishments to be acknowledged while helping to achieve departmental
and firm goals. Recognition schemes could be are formal or informal and recognised
individual performance generally, without the need for scheduled accomplishments or
productivity standards that the staff was required to attain. Appreciation strategies
increased productivity by giving quick, productive, and nurturing feedback for certain
behaviours.

2.3.4 Development and Career Opportunities


Development as "a combination of learning experiences aimed at enhancing
employees' practical skills and competencies." Development focused on better employee
productivity on the one hand and, on the other hand, encourages leaders to further their HR
strategies. Career opportunities were typically given in the shape of career advancement
plans that enabled staff to pursue their career goals. Career opportunities provided within
the organization to encourage talented employees to take positions that allowed the firm to
get the most out of the employee’s abilities and add value to their organization. Common
types of development and career opportunities were given in Table 2.3 below.

53
Table 2.3: Types of Development and Career Opportunities
Advancement
Learning Opportunities Coaching/Mentoring
Opportunities
Tuition Assistance. Leadership Training. Internships.

Corporate Universities. Access to Experts/Information Apprenticeships with


Knowledge Bases — Experts.
Membership of Associations,
Attending and/or Presenting at
Conferences beyond the Area
of One’s Expertise.
New Technology Exposure to Resident Experts. Overseas Assignments.
Training.

Attending External Formal or Informal Mentoring Internal Job Postings.


Seminars, Conferences, Sessions Organized Internally
Virtual Education, etc. or Externally.

Self-Development Tools Job


and Techniques. Advancement/Promotion.

On-job Learning; Career Ladders and


Problem-Solving Pathways.
Assignments at a
Progressively Senior
Level.

Leaves Granted with The Succession Planning.


Objective to Allow
Specific Knowledge,
Skills or Experience
gain.
Giving Defined and
Decent "On and Off
Ramps" during One’s
Career.
Adopted from the Model of reward system from World at work (2012)

54
2.3.5 Pay Increase Policies and Practices
Pay raise policies were one of the key attributes of any compensation system. The
various types of pay increases included (1) merit increases, (2) lump-sum increases, (3)
step-rate increases, (4) general increases, (5) cost-of-living allowance (COLA) increases,
(6) equity-based adjustments, and (7) market-based adjustments.
Employees normally qualify for different kinds of basic salary raises, such as a
universal raise, COLA raise, new rank raise, stage raise within grades, or a raise on superior
performance. A universal pay raise known as an “across-the-board raise” and offered in
equal proportions to the firm’s entire workforce based on certain each employee’s
qualifications. For example, all workforce might get pay raise equal to a proportion of their
base pay or gross pay. Organizations might identify that few workers (e.g., those who go
beyond the highest of their pay ranges or those whose performance was below average)
were to be disqualified from getting such raises. Across-the-board pay raises are not
theoretically attuned with performance incentive schemes, and the application of such
raises has become limited as the application of more advanced incentive schemes has
expanded.
A COLA increase given to all the employees to safeguard their purchasing power
against the pressure of inflation. These raises were usually linked to increases in the
Consumer Price Index (CPI).
Raises on the basis of promotions were a separate class of raise. This type of
monetary incentive granted when an employee is moved up to a higher rank or grade. The
size of this raise depended on how high the jump in the rank or grade was, and where the
employee ranks among their colleagues, bosses, and juniors. However, within-range
increases as a basic salary increase granted based on individual seniority and productivity.
There were two major beliefs regarding within-range raises; the first was that such
raises depend on seniority (e.g., step raises that are particularly for non-exempt employees)
and the second belief was that raises should rely on merit and should often be managed as
an array of raises in proportion to the employee’s degree of productivity. Merit increases
could be linked to step-wise raises.
In-built ideas for merit raises, such as the pace at which an employee moves through
pay ranges, were based on task productivity. The output of the employee and his or her

55
existing pay rate within the pay range were important considerations. As a result, the merit
increase may vary in size and timing. Most firms were now changing their policies
regarding the frequency and pattern with which they award raises and vary the size of
raises. A fixed interval for granting pay raises may be job-specific, however, the most
routine timeframe for granting pay raise was to grant pay raises annually. Some firms did
not follow this pattern. Instead, the proportional salary increase given to an employee is
linked directly to that employee’s productivity and indirectly to the employee’s place
within the salary range. Upper and lower management often given a planned framework
for granting salary premiums.
As management gains professional maturity, compensation systems developed to
support the leading principles of management. The use of discretionary and arbitrary pay
decisions created confusion and conflicts were disruptive to organizational performance.
A system of controls is needed for fair compensation to be given (Wilson et al., 1995).
People come to work for an organization for many reasons. Several studies have
endeavoured to ascertain the most important ones. Evidently, the traditional approach to
designing a compensation package was not always the best way to motivate an employee.
For many employees, personal growth and career progression opportunities were more
important than monetary rewards. Such employees prefer to work under a leader in an
industry or for an institution that rewards its employees by giving promotions. For others,
the enterprise may be geologically appropriate, may offer prospects for travel or
concessions on goods and services, and these benefits may be more important than a pay
raise. Finally, many people attracted by the compensation, benefits, employee services, and
opportunities to receive incentive pay, stock options, or special awards. They were excited
about the opportunities that were available to them as well as by the challenging role, the
work environment, and the vision of the organization’s leaders.
Three approaches were commonly used to determine what was valuable to employees.
First, a firm attempted to use diverse reward schemes and observed what works best to
motivate employees. Some organizations used short-term contests or performance
campaigns to see what it would take to inspire people. Similar to the Hawthorne
experiments on human motivation conducted in the 1950s (Parsons, 1974), one may found
that any attention people received likely would lead to increased performance and morale

56
over the short term. However, companies need to sustain reward systems to achieve
enduring results.
Second, compensation packages could be designed according to the employees’
preferences. The Wilson Group, Inc., framed and managed a “Personal Preference Survey”
for its many customers, and every time, the study showed several significant findings. For
example, through a number of surveys, it was determined that the top five most important
factors that employees desire from their employers are the following:
1. Exemplary leadership
2. Medical benefits
3. Active involvement in decision-making
4. Non-worked compensation
5. Challenging tasks
However, on closer examination, it was found that some of these results varied
according to the employees’ qualification, sex, and age. The leading two demands, the
excellence of leadership and medical benefits, were high on the list across all groups,
(except for individuals in their 20s, who preferred personal growth and career development
over medical care). It was surprising that only indirect compensation was among the top-
ranked demands, while direct compensation was largely ignored. This was in congruence
with other studies on motivation (Herzberg, Mausner, & Snyderman, 1959) and employee
opinion surveys.
The third approach is a more personalized way to identify what people value by
observing what choices they make when they have the freedom to do so. If the individual
enjoys travel or attending sporting events, rewards that offer such experiences should be
well suited to that individual. If the individual uses his or her free time to be involved in a
public, worship place, or social welfare tasks, providing that employee with the chance to
follow these activities would be more useful than sending them on a trip. If an individual
follows creative endeavours in art, music, woodwork, etc., providing them with a gift that
supports their interest in these activities may have a pervasive effect on that worker’s
motivation. This simple, obvious concept has been well researched (Premack, 1959).
Do rewards include healthcare benefits, training, access to specialized equipment,
involvement in decisions, or membership in task forces or internal committees? Must all

57
rewards be contingent on performance? The simple answer was “yes”; defined rewards in
the current study as programs, processes, and practices that influence employees’
behaviour. However, rewards must not be considered as a quid pro quo or as reinforcing
only a transactional relationship (Wilson et al., 1995).
The salaries and bonuses given to teachers were the subjects of many news stories,
owing to their extraordinary development since the introduction of TTS, especially in
recent decades and especially in Pakistan. The anger and resentment over executive
compensation account for much of the public hostility toward financial capitalism in
general.

2.3.6 Compensation Systems in HEIs


It was known that the longer one can retain high-profile research academic, the better
the quality of education and research. There were some fringe benefits which benefited the
longevity of employment (e.g., an extra week of holidays for a person who has been
employed for more than five years). The increase in student enrolment across the globe
created a compelling need for HEIs to recruit more faculty. However, in parallel, HEIs
explored options that allow more flexibility regarding payroll systems and for the
adjustment of the expertise and size of the faculty as demands change (Altbach et al., 2013).
There was a need to understand and studied a few common problems that universities
confront in terms of compensation. A reward system, though one of the best operational
techniques for compensation, failed in many organizations. Compensation package
attributed should account for an organizations goals, work culture and different business
life cycle situations. Typical compensation attributes, like incentive schemes, should be
included. Organizations still focused more on establishing compensation system attributes
according to market practices. They simply looked at common exercises or popular
strategies and value their schemes at the average, median, or seventy-fifth-percentile
compensation level among peer universities rather than formulating strategies based the
typical and unique needs of their firms and staff (Ashby & Miles, 2002). The same found
to be a source of serious mistakes on the part of HEIs of Pakistan. Here, universities might
not be formulating and enforcing compensation system attributes according to the needs of
the teachers or of the universities themselves.

58
An individual's compensation dependent on his qualifications and experience and
indicated individual performance (Hyclak, Johnes, & Thornton, 2004). Refining
compensation practices and ensuring internal consistency in compensation systems
allowed enterprises to give their workers and prospective employment seekers
compensation packages that based on objective performance appraisal methods (Thomas,
2013). Shifting faculty compensation to a performance-based system serves as an
influencing tool, by which workers are compensated for the work performed rather than
for the time given (Rayburn, 2011). In addition, teachers responded in line with major
theories of economics. Teachers behave positively when they were given more monetary
rewards proportionate to the number of research publications they produced and responded
negatively when financial benefits were not offered as a reward (Backes-Gellner &
Schlinghoff, 2008). Academic and research performance impacted the compensation
appropriation of teachers who had an extraordinary research output (Gomez-Mejia &
Balkin, 1992).
Teachers compensated for raising the reputation of their HEI by spending more time
working on prestige-enhancing research outputs. Since allocating more time to teaching
(or other activities) had less link with a teacher’s salary, even in general HEIs or art
colleges, teachers, according to the same economic motivation, was not expected in willing
to put extra effort for acceptable teaching and other performance (Melguizo & Strober,
2007).
Compensation as a direct association with the organizational performance in terms of
the quality of goods produced, overall development, and revenue (Hassel, 2002; Kalleberg
& Moody, 1994; McAdams & Hawk, 1994; Podgursky and Springer, 2007; Varadarajan
& Futrell, 1984).
Supporting this idea, (Meihuizen & Benschop, 1999) argued that employee stock
option plans positively affect productivity. Additionally, offering rewards more frequently
leads to employees’ satisfaction with performance-related reward (Cason et al., 2010;
Lazear, 2003). Greater transparency and fairness in the compensation system (TTS and
BPS) also led to improve employee performance (Agho, Price, & Mueller, 2011; Jackson,
Schuler, & Rivero, 2006; Lazear, 1996; Tsui, Pearce, Porter, & Tripoli, 1997; Vroom,

59
1964). Limited and achievable measures positively linked to employees’ satisfaction with
performance-related rewards (Lazear, 1996; Tsui et al., 1997; Vroom, 1964).

2.3.7 Pakistan’s Experience


There were three kinds of compensation systems available in Pakistan: a basic pay
system (BPS), tenure track system (TTS) or a system using special pay scales (SPSs). The
BPS scale, commonly used in the public sector, while the TTS is often utilized in
universities. SPSs (or private scales) are implemented in private and in some public
organizations (e.g., the Pakistan Atomic Energy Commission and Kahuta Research
Laboratories).
CSAs design significant to our understanding of important attitudes and behaviours
(Dulebohn & Werling, 2007). As academic work becomes more complex and as the
academic labour market becomes more differentiated, there was a need to integrate
diversity into extended promotional and reward schemes (Dunkin, 2003b).
HRM Practices and employee’s performance found to have a positive relationship in
telecom industry of Pakistan (Marwat, Qureshi, & Ramay, 2006). Employee compensation
was getting visibility and serious consideration in large oil and gas production and
marketing companies operating in Pakistan (Sarmad, Ajmal, Shamim, Saleh, & Malik,
2016). In the textile sector of Pakistan effective HR systems such as compensation regime
and training enhanced employee's performance (Hassan, 2016). This signified the
relationship between compensation and staff performance evident in Pakistan. In the
context of HEIs, it would be very interesting and useful to analyse this, considering that it
was a human capital intensive sector.
Permanent, contractual and part-time teachers differ in terms of their preferred CSAs.
Every member of the workforce received a guaranteed base pay and typical allowances.
Peculiar forms of CSAs were pertinent only to certain employees. The use of incentive
schemes as CSAs are gaining importance and acceptance. Many organizations were now
using these schemes to compensate their employees. The payment of annual bonuses was
reported by the majority of the surveyed organizations. They shifted from obligatory bonus
plans to performance-based bonus plans by presenting employees with technical

60
achievement awards, stock option programs, etc. to cope with the risks associated with
fixed compensation attributes.
Perceived job worth, the candidate’s worth, internal equity (Chicha, 2006), market
trends in compensation, policy structures, budgetary and financial strength, and HEC
regulatory bodies’ provisions were the determinants of compensation. In the literature,
internal equity, job evaluation, and individual feedback regarding rewards for managing
compensation were also considered important. However, some of the recent literature
emphasised on the influences of external aspects – such as outside employment
marketplaces, marketplace ratings, and external competitiveness – on reward policies and
practices (Dulebohn & Werling, 2007).
Developing HC by initiating a TTS by the HEC in Pakistan in 2002 was a challenging
and cumbersome job. By providing funding and assistance targeting growth in output of
PhDs in Pakistan, the HEC helped towards building a knowledge-based economy. This
evident from the literature, which stated that the number of PhDs received in Pakistan in
the last 10 years is almost double the number received over the 50 years prior. Research
output has also increased (HEC, 2012).
In the context of literature reviewed herein and associated findings narrated in the
preceding passages, there is an urgent need for the present research. To summarise the
literature review, compensation attributes (TTS, SPS and BPS) generally have a strong
bearing on the PsyCap development of employees and, subsequently, on employee and
department performance. Compensation system settings and incentives, whether monetary
or non-monetary, fuel the employee’s PsyCap to meet individual, departmental, and
organizational objectives.
Table 2.4 described and the different types of rewards under CSAs in different HEIs
in Pakistan. Reward types included basic pay, allowances, incentives, pay increases,
medical benefits, leaves, advances to faculty, accommodation, terminal benefits, group
insurance, considerations for dependents, travel, subsistence and hospitality, performance
and recognition, and training and development. More detailed information comparing the
payment systems of the government and privately run selected HEIs of Pakistan, which
was obtained through reports, statutes, and HR managers of different HEIs, were provided
in Appendix B.

61
Table 2.4: Existence and Types of Total Rewards in Different HEIs of Pakistan
Type of Rewards CIIT (Semi- PU UMT
Public) (Public) (Private)
Basic Pay under BPS No Yes No
Basic Pay under TTS Yes Yes No
Basic Pay under SPS Yes No Yes
Allowances Yes Yes Yes
Incentives Yes Yes Yes
Pay Increases Yes Yes Yes
Advance Increments Yes Yes No
Medical Coverage Yes Yes Yes
Leaves Yes Yes Yes
Advances to Faculty Yes No No
University Provided Accommodation Yes Yes No
Terminal Benefits Yes Yes No
Group Life Insurance Yes Yes Yes
Financial Assistance to the Family of Yes Yes No
Teachers
Travel, Subsistence and Hospitality Yes Yes Yes
Performance and Recognition Yes Yes Yes
Development and Career Yes Yes Yes
Opportunities
CIIT-COMSATS Institute of Information Technology, Islamabad, UMT-University of Management and
Technology, Lahore, PU-University of the Punjab, Lahore BPS-Basic Pay Scale: It is applicable in
government HEIs of Pakistan TTS-Tenure Track System: It is applicable in both semi-public and public
sector HEIs of Pakistan SPS-Special Pay Scale: It is applicable in Semi-public and private HEIs of Pakistan
In the columns, "Yes" indicates that the study found the existence of reward, and "No" indicates non-
existence of rewards.

The minimum pay of lecturers, assistant professors, associate professors, and


professors in public, semi-public, and private HEIs is Rs.25,500, Rs.47,000, Rs.94,000,
and Rs.292,000, respectively, including TTS, SPS and BPS pay scales. The minimum pay
in public HEIs was low. Allowances, such as PhD allowances, given to teachers in the
public and semi-public sector at a rate of only Rs.10,000 per month. Special allowances
given to senior faculty members in public sector organizations at a rate of Rs.5,000 per
month; in the semi-public sector organization, it comprised a one-time honorarium or
increment that was equal to one increment. Increments range from Rs.2200-Rs.14,000 for
teachers in HEIs from all cadres. A major aspect of salary in both types of public sector
organizations is the ad-hoc allowances accumulated from year to year (from 2010), which
ranges from 10-15% of basic pay. Recently, the government took the decision to make ad-
hoc allowances a part of the regular running base pay. Publications in foreign journals were

62
now rewarded. The publication incentive ranges from Rs.7000-Rs.10,000 per publication.
Incentives provided to a PhD supervisor in private university was more than in public
universities. Incentives for non-PhD teachers/officers in public universities was Rs.5,000
per month. In the semi-public sector, incentives exist for faculty development programmes.
Faculty members who which to obtain a PhD/MS are given full fee waivers and 2-4 years
leave with pay as per the discretion of the authority.
Advance increments based on receiving a PhD degree while joining a university
ranges from 2-4 increments and was especially pronounced in the government HEIs. In the
private sector, bargaining over packages was a common practice. Medical coverage (which
normally included compensation for eyeglasses, dental braces, cosmetic surgery, vitamins,
and tonics) often excluded from compensation packages given to HEI employees.
Maternity leave is given for up to 90 days. Encashment of refused leave (number of days)
with full pay in a public university was available for up to 365 days.
Furlough/Sabbatical leave given in public-sector HEIs, provided that the teacher
has completed four years of active service. Not more than two years’ of furlough may be
granted at any one time; the second time, it may be granted for three years. In extraordinary
cases, without pay leave of up to five years may be given in the public sector as per the
discretion of the concerned head of the department.
Advances to faculty for house building given with 0% mark-up and no limit of
instalments for up to 80% of their provident fund for teachers working in semi-public
universities. University-provided accommodation benefits were available in public
universities and were partially available in semi-public and private universities. General
purpose loans were not available in public universities. In cases of terminal benefits,
pensions given in public universities. However, in semi-public universities, employees
must choose either gratuity or pension. Provident funds were contributory in nature in the
public sector only. Voluntary provident funds in public university were non-contributory,
and teachers contribute up to 2% of their basic pay.
Insurance coverage in case of death and disability was available at public universities.
In cases of death, the Punjab government announced that Rs.3.4 million is to be given to
the dependents of the deceased teacher, but not always done in practice. In the public sector,
one child or widow of the deceased could receive employment in the place of the deceased.

63
In the domain of travel, subsistence, and hospitality, public-sector teachers were given
fewer benefits than teachers who work for semi-public and private HEIs. In general, it has
been observed that the pay scales and overall compensation packages are substantially
higher in the private sector opposed to the public sector, making the former a more
attractive opportunity for most well-qualified teachers.
In terms of performance and recognition, proper continuous feedback systems and
informal methods of appreciation were not in place. Mostly, informal mentoring programs
were in place in all HEIs. The systems of job advancement and career pathways were
mostly based on the standards set by the HEC. Private HEIs relaxed the number of
publications required for promotions when compared to public and semi-public HEIs
(Details regarding compensation and benefits offered to teachers based on a TTS can be
seen in Appendix B).

2.4 Psychological Capital (PsyCap)


PsyCap a key asset of HCM along with human, social, and financial capital. Since the
beginning of this century, psychologists analysed the connection between principal and
agent to comprehend investment in PsyCap in the workplace. "Positive organizational
behaviour (POB) (Luthans, 2002) and its product, PsyCap (Luthans, Avolio, et al., 2007;
Luthans & Youssef, 2004), originate from the fundamental and applied research in positive
psychology" (Seligman & Csikszentmihalyi, 2000; Sheldon & King, 2001), appeared to be
adopt in organizations (Luthans & Youssef, 2004).
PsyCap comprised developable and malleable resources (demonstrating self-efficacy,
resiliency, optimism and hopefulness) of the staff (Hsu, Hsu, & Chiu, 2012; Seligman,
2002). PsyCap and trust variables mediateds the association between leadership and group
or departmental productivity even when the variable of transformational leadership was
controlled (Walumbwa, Luthans, Avey, & Oke, 2011). Positive PsyCap (comprising self-
efficacy, hopefulness, and resiliency) mediates between conducive institutional
environment and individual consequences (Luthans, Norman, et al., 2008a). Moreover,
mindfulness interacted with it in gauging positive emotions. The part of positive emotions
also studied in PsyCap umbrella (Abbas & Raja, 2015; Avey, Wernsing, & Luthans, 2008).

64
Several studies identified that PsyCap and its attributes related to a number of
variables, including understanding worker stress, intent to leave and employment search
behaviour, improving satisfaction and retention, increased happiness, firm commitment,
reductions in costs as a result of absenteeism, and good performance (Avey, Patera, &
West, 2006; Avey, Reichard, Luthans, & Mhatre, 2011b; Baron, Franklin, & Hmieleski,
2013; Dawkins, Martin, Scott, & Sanderson, 2013; Gooty, Gavin, Johnson, Frazier, &
Snow, 2009; Luthans, Avey, Clapp-Smith, & Li, 2008; Luthans, Avolio, et al., 2007;
Luthans et al., 2005; Peterson & Luthans, 2003; Walumbwa et al., 2011; Walumbwa,
Peterson, Avolio, & Hartnell, 2010; Youssef & Luthans, 2007).
Current research in organizational behaviour affirmed that individual differences in
their strength of character (Peterson & Seligman, 2004) and affirmative emotional
conditions (Luthans, 2002). In a study of an Indian business process outsourcing company
concluded that employees with a higher degree of hopefulness executed their services more
effectively than those with low levels of hopefulness (Ho, Whitaker, Mithas, & Roy, 2013).
The researchers examined an individual level of psychological energy and excitement, as
another type of PsyCap (Dutton, 2003; Fritz, Lam, & Spreitzer, 2011; Hobfoll, 1989; Ryan
& Frederick, 1997). This type of energy and excitement diminished, particularly in jobs
requiring employees’ involvement in intentional behaviours, self-discipline, and directive.
The degree of energy and excitement has several aspects, such as career avenues, the
crafting of the job, and the way the job contributed to the organization. The existence of
this form of PsyCap headed better productivity and compensation. Employees who perform
effortfully, deliberate jobs, like clerical tasks, resultantly perform poorly on jobs
demanding self-discipline (Vohs et al., 2008). When the type of the duty was boring,
comprised of several directions, and demands a high level of self-discipline, employees’
psychological drive and self-esteem become exhausted, and their output and determination
in performing their responsibilities decreases. Existing theories of motivation failed to
appropriately address PsyCap in better comprehending individual enthusiasm and zeal in
today's quickly changing organizations in this knowledge-based economy (Stajkovic,
2006).
Psychological capital interventions (PCIs) helped to improve individual PsyCap and,
resultantly, output (Luthans, Avey, Avolio, & Peterson, 2010; Peterson, Gerhardt, & Rode,

65
2006). Mere appreciation was not a substitute for a good salary; similarly, a good salary
was a not a replacement for pride in one’s work, while pride alone would not pay one’s
bills (Hindustan Times, 2006). Luthans (2007) "confirmed the connection between
adequate recognition and PsyCap: Recognizing others [has] a strong positive impact and
as a part of the positive psychology notion of Receive by Giving". Job resources, including
some compensation attributes, motivate the workforce to meet the desired outcomes.
Employees then become committed to the job itself (Hackman & Oldham, 1980).
Positive Organizational Behaviours (POB) research dealt with psychological
variables that influencd the capabilities and strengths of human resources in organizations
and enhanced their performance. Antecedents of POB (such as the meaningful work of
employees and supportive organizational climate) influenced PsyCap, and resultantly
employee satisfaction and well-being (Kim, Kim, Newman, Ferris & Perrewe, 2019).
Positive psychology aimed at fostering positive emotions, positive personality
characteristics, positive thought processes, experiencing positive situations, and so on.
POB stresses on using a positive lens wile dealing employee performance such as what
they did well rather what was wrong. SE and COR theories could be very useful to explain
employee performance in this context. Maladaptive behaviours were not focused on; rather,
the focus was put on strengths. This positive emphasis stared after World War II when
psychologists discovered a new aspect of emerging positive psychology which was called
PsyCap (Luthans, 2007).
In organizations, management was primarily concerned with human, social and
financial capitals. PsyCap has emerged as a fourth important factor over the past decade.
PsyCap derived from Psychological base theories such as COR theory. COR theory
(Wright & Hobfoll, 2004) helped in explaining what influence employees' motivation and
zeal to attain, maintain, and proliferate the required tools as found in PsyCap to achieve
optimum performance indicators. Researchers shown that PsyCap positively influenced
academic achievements and educational organizations’ performance. What drives an
individual’s motivation to strive and make choices could be depicted through high-order
psychological resources comprising (1) hope, (2) self-efficacy, (3) resiliency, and (4)
optimism, which consequently affect performance and motivation (Hobfoll, 2002).
Moreover, employee motivational striving, choices and ability enhanced through HPWS

66
fairly consistent with the AMO theory. HPWS such as skill enhancement and training,
better pay and career growth avenues (Appelbaum et al., 2000) provided a platform to
enhance motivation and performance of the employee (Jyoti & Dev, 2016).

2.4.1 Self-Efficacy
Self-efficacy enhanced an employee’s PsyCap by creating a constructive work mind-
set (Luthans, Avolio, et al., 2007). Self-efficacy created a dissimilarity in how an individual
views, senses, and performs and affects how groups perceive events (Bandura, 1998).
Bosscher and Smit (1998) argued that experiences in life contribute to creating self-
efficacy beliefs. According to Maddux (1995), a few cognitive determinants of employee
behaviour received ample and consistent empirical support regarding the concept of self-
efficacy.
CSAs helped employees to be self-efficacious (Rynes, Gerhart, & Minette, 2004;
Schay & Fisher, 2013; Turban & Keon, 1993). Employees’ engagement with their work
correlated with their self-efficacy, one of the POB capacities (Luthans & Peterson, 2002).
Self-efficacy enhanced through challenging people and setting clear, measurable, and
achievable goals. Recent studies confirmed that positive effects of self-efficacy (i.e.,
expectancy) observed when employees given more compensation (e.g., challenging tasks)
and negative effects of self-efficacy seen when employees given less compensation (e.g.,
no challenging tasks) (Stirin, Ganzach, & Pazy, 2016).
Expectancy theory described a performance-based effort. An employee should trust
that they were proficient in productively carrying out a job. In fact, they should be self-
efficacious or demonstrate job-oriented confidence (Dieleman et al., 2007; Locke &
Latham, 2006) in such a way that they certain that, if they put in the work, the results they
attained would be worth the effort. A related study also recommended that performance-
based bonuses as a key component of the way in which CSAs affect employees’ self-
confidence (Earley & Lituchy, 1991) and stimulated their productivity (Durant et al.,
2006).
With strong incentive schemes in place, productivity goals set to assess productivity
and compensation (Susseles & Magid, 2005). Job and personal attributes helped staff in
meeting their job requirements (Bakker & Demerouti, 2008). Research showed that

67
motivated personnel exercise more vigour and confidence in their studies (Schaufeli et al.,
2001). Derivatives of job commitment included job resources and individual resources that
enhanced psychological energy and excitement in addition to self-efficacy.
Job resources included peer-social capital and supervisor-social capital, job
characteristics (feedback, task diversity, and independence), and growth prospects (Bakker
& Demerouti, 2008). Moreover, job resources (productivity response, communal support,
and mentoring) played both intrinsic and extrinsic motivational roles for employees.
Self-efficacy related to completing an assignment with confidence through positive
psychology. Social cognitive theory relevant to self-efficacy as an individual goes through
a process of learning by observing. Human beings were proactive, self-organized, self-
reflecting, and self-regulating rather than only reactive to environmental forces and
controlled by external factors. Bandura’s theory of reciprocal determination (later renamed
the social cognitive learning theory) founded upon the argument that a specific behaviour
type as the outcome of a combination of personal, environmental, and behavioural
influences. This was the foundation of self-efficacy PsyCap.
Strategies build on this theory focus on enhancing the cognitive skills of individuals,
improving emotional intelligence and motivational processes, enhancing competencies, or
changing overall social settings to improve work output. For example, in educational
institutions, managers presented with the challenge of increasing efficiency, improving the
self-confidence of teachers. By applying social cognitive theory as a framework, managers
can guide teachers to reconsider their faulty and discouraging self-beliefs (personal
factors), which can improve their self-regulatory practices and academic skills
(behaviours). Doing this could change the educational institution’s settings/structure and
interactive environment in a way that yields successful academic achievements
(environment). What individuals believed to be true shapes how they behaved, (Bandura,
1986). Bandura posited that the human as an agent who was continuously engaged in self-
development and that humans do not live in isolation; therefore, they considered as the
producers and products within their eco-system. High self-efficacy led to serenity when
one was faced with difficult tasks.
Agreeing with the theory of conservation (Hobfoll, 2001), employees tend to attain
and keep the things that matter the most to them, such as material goods, and social and

68
personal attributes. COR theory depicted self-efficacy as one of the psychological
resources that helped to build the reservoir of PsyCap for better performance of the
employee. In a way, job resources, such as management teaching, entrance into
specialist/data nets included organizational affiliations, attending and/or appearances in
seminars beyond an individual field of specialization, shared experiences with local
specialists, and official or casual mentoring schemes. In or outside an individual’s
institution, employees as their own individual personal resources, such as hopefulness,
confidence, and self-worth. Both types of resources helped employees to perform better
(Bakker & Demerouti, 2008; Luthans, Norman, et al., 2008a). A meta-analysis reported a
0.38 direct association between self-efficacy and employee productivity (Stajkovic &
Luthans, 1998). Moreover, AMO theory discussed that employee motivational striving,
choices and ability enhanced by implementing HPWS such as career and development
avenues, high pay and flexible work schedule.

2.4.2 Hope
"Constructs related to hope began to be introduced into the psychological and
psychiatric literature in the 1950s" (Magaletta & Oliver, 1999). Hope typically referred to
as one’s perceived capability in planning to meet goals in addition to one’s level of goal-
directed energy (Luthans, Avolio, et al., 2007; Snyder, 2002). One's belief in his or her
capability to govern important objectives thus very important to understand (ÇETİN &
BASIM, 2011).
It was consistently found that more hopeful employees set more complex targets for
themselves and generally manage to attain their targets (Anderson, 1988; Emmons, 1992;
Irving, Snyder, & Crowson, 1998; Peterson & Byron, 2008; Snyder et al., 1991). Research
on variables of composite hope and the power dimension of hope forecasted possible
shades of creativity and the ideas championing dimension respectively (Rego, Machado,
Leal, & Cunha, 2009). Hope was a pro-motivation cognitive condition dependent upon an
individual’s interactive analysis of the root of their goals and their motivation to achieve
them. Theories stated that hope helped a person reach their goals and provides a person
with chances to achieve them. Traditional psychotherapists focused on reducing or
eliminating desperation rather than building positive attitudes related to hope. Hope often

69
produced excellent academic performance. In a person’s life, hope pertains only to those
goals which a person was close to achieving. Researchers observed that hope leads to better
performance and greater satisfaction (Peterson & Byron, 2008).
Hope theory based on goals, pathways (goal planning), and agency (goal-driven
energy). Being hopeful was not enough for a person to achieve their goals; a person must
had plausible alternative ways to meet his/her goals. It was one of the strongest theories
discussed in this paper and has empirical measurements of positive psychology. In the
context of foregoing discussion, hope and high performance might be a strong linkage in
the education sector for teachers and students also. It also improved an employee’s
capability to achieve his or her targets in different ways without being discouraged by their
failures.
According to COR theory, hope, another significant psychological resource, as part
of the reservoir of PsyCap depicted motivational striving and resultantly performance of
the employees. The hope held by both managers and associates was positively linked to
performance (Luthans & Jensen, 2002; Peterson & Luthans, 2003). PsyCap resources
differently affected the level of performance as well (Youssef & Luthans, 2007). The
agency dimension of an Adult Hope Scale was the best predictor of lifetime gratification
(Bailey, Eng, Frisch, & Snyder, 2007). Hope has also been shown to bring positivity and
good results to academics (Ciarrochi, Heaven, & Davies, 2007).
Scheier and Carver (1993) theory of optimism emphased general prospects of
affirmative results, while Snyder's hope theory (Snyder, 2002) emphased the way in which
assessments of individual intervention could promote the achievement of objectives. Hope
and optimism stand alone as separate dormant concepts, inferring a modest change in
comfort (Gallagher & Lopez, 2009). It was evident that the hope capacity of the PsyCap of
organizational leaders was developable in the current era (Youssef & Luthans, 2005).
Results supported the idea that there was a unique variance within each PsyCap capacity
in predicting the wellbeing of employees. As such, these dimensions were not similar
(Magaletta & Oliver, 1999).

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Table 2.5: Comparison of Different Constructs of PsyCap

Construct

Theoretical component Hopefulness self-efficacious optimist

Objective focused x
Agent factor x x x
Pathway component x
A state like x x x

Source: Adapted from the work of Peterson & Byron (2008)

2.4.3 Optimism
Optimism as a form of excitement described by the capability to create affirmative
beliefs. Optimistic people deduced present or previous happenings in an affirmative way
(Luthans, Avolio, et al., 2007). Optimism founded in theory of attribution. Agreeing to this
theory, employees tend to casually attribute harmful instances as outer, provisional, and
particular while affirmative instances as inner, permanent, and universal.
Sometimes, optimistic individuals observed to be more hardworking, well-
motivated, and to have higher morale than other employees, even when they were
experiencing deadlines under pressure, job insecurity, and a poor work environment
(Mäkikangas & Kinnunen, 2003). Moreover, having more control over one’s job, even if
it was relatively demanding, along with dependent care policies helped employees to
manage work-family conflicts (Mauno, Kinnunen, & Ruokolainen, 2006); when compared
with pessimists, optimists take maximum advantage from benefits like tuition support.
They derived maximum benefits from innovative technology teaching;
coaching/mentoring activates, such as leadership training; performances at seminars
beyond their field of specialization; and contact with local specialists. Progression
opportunities – like training sessions, mentorships with specialists, and projects from either
inside or outside employment postings – also helped them to follow their goals under
adverse circumstances (Wrosch & Scheier, 2003). How individuals explained success and
failure depends upon whether their approach to thinking about success and failure is
optimistic or pessimistic. It was an objective-oriented cognitive system that works when
extraordinary results expected (Scheier & Carver, 1985).

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An optimistic person contributed his/her success to their skills, traits, or
characteristics, while a pessimistic person credits their success to chance. The opposite
occurred in cases of failure: an optimistic person correlated failure with unforeseen
challenges faced during a task, while a pessimistic related their failures to a lack of skills
or their poor characteristics. In other words, “Attribution theory dealt with how the social
perceiver used the information to arrive at causal explanations for events. It examined what
information gathered and how it was combined to form a causal judgment” (Fiske, &
Taylor, 1991). People usually preferred to develop a cause-and-effect relationship within
given situations even if there is none. Researchers shown that, in academic settings,
optimistic individuals outperform pessimistic individuals. According to COR theory,
optimism was another significant psychological resource that as part of the reservoir of
PsyCap helped in motivational striving and resultantly staff performance. In line with the
theory of AMO, HPWS such as ability-enhancing HRM systems and motivation helped to
build the hope psychological capacity as a part of a reservoir of PsyCap.

2.4.4 Resiliency
Resilience revealed the psychological hardiness element of PsyCap (Avey et al.,
2009). According to Jung and Yoon (2015), "resilience is one’s perceived ability to recover
from hardship or failure". The higher one’s resilience, the higher their requisite ability.
Being resilient meant coming back from difficult circumstances or persisting through tough
times. In terms of PsyCap, this characteristic was most significant to retain balance within
individuals. The cognitive consistency theory emphasized the ability of people to continue
thinking clearly when unpredictable occurrences result in conflict. Resilient people think
positively and continue used their full energy to make things happen under unfavourable
circumstances. A person’s performance needed to be changed as circumstances change.
This kind of change occurs when a change in one’s attitude led to a change in their actual
behaviour. This theory concentrated on the ways in which internal motivations operated
when there was conflict and tension between thoughts and the environment. This tension
caused by dissonance, which people were intrinsically motivated to reduce. Festinger
(1957), clarified that one’s commitment to a decision was the beginning, not the end, of
conflict. In this dynamic world, so many things happened that frustrate people, but this

72
attribute of PsyCap made it possible for people to create a balance between circumstances
and their achievement of goals. As a kind of internal motivation that was coordinated with
two elements of cognition: the behavioural cognitive element and the environmental
cognitive element.
1. The behavioural cognitive element of cognition referred to change to one’s actions
created by a change in one’s feelings about a situation.
2. The environmental cognitive element of cognition referred to change that result
from changing a situation.
In line with COR theory, besides self-efficacy, hope and optimism, resiliency was
also an important part of a reservoir of PsyCap that helped to get motivated and
performance oriented employee. In addition to that AMO theory described that motivation
and ability-enhancing HPWS worked in generating the resiliency named as psychological
hardiness element of PsyCap. Resilience could be enhanced by following HRD strategies,
such as resource concentrated, danger concentrated, and procedure concentrated
approaches (Luthans, Vogelgesang, & Lester, 2006). A risk-focused HRD strategy for
developing resilience among employees emphasized the promotion of an effective
organizational culture. Process-focused HRD strategies for enhancing PsyCap resilience
comprise a mastery and achievement understandings, distance knowledge acquisition or
modelling, persuasion or affirmative responses, mental or physical stimulation, and well-
being (Luthans et al., 2006). This approach to developing resilience enhanced
resourcefulness (e.g., one’s skills, knowledge, and experience). According to Report of
Government of Australia in 2012, compensation systems also helped to improve resilience
among disabled and injured employees.

2.5 Psychological Contract Fulfilment (PCF)


PCF is termed as a worker's system of trust as shaped by the firm he or she works for
(Rousseau & Greller, 1994). Recent research indicated that psychological contracts affect
employee and institutional goals (Robinson & Morrison, 1995; Shore & Tetrick, 1994).
PCF linked to Social exchange theory (SE). SE theory, which was originally postulated by
George Homans in 1958 and later advanced by other theorists (Emerson, 1976), was the
most broadly recognized and used academic model from a psychological exchange

73
viewpoint and expressed based on a few key characteristics – give-and-take of behaviours,
whether they were physical or non-physical and differences in pay between two or more
people (George & Homans, 1961).
A review of the earlier literature discussed highlights that that a principal-agent link
discussed with a primary focus on attitudes rather than on its effect on institutional and
individual output (Katou & Budhwar, 2012; Pate, Martin, & McGoldrick, 2003). Research
on psychological contracts lacked an emphasis on PCF when compared with violations of
psychological contracts (Grimmer & Oddy, 2007; Nelson & Tonks, 2007). When violating
the psychological contract, the individual accepted that the institution failed in fulfilling its
undertakings (Baker, 2009). This research, conversely, concentrated on the fulfilment of
institutional promises as viewed by the workforce, who expected to return the favour by
carrying out their identifiable undertakings (De Jong, Schalk, & De Cuyper, 2009; Katou
& Budhwar, 2012).
It is confirmed that the outcome of the psychological contract significantly linked to
the individual and the firm meeting their respective obligations as agreed upon. However,
it needed to be understood that higher performance levels do not necessarily depend on the
mere soundness of psychological contracts. If a contract is not rigorous and observed not
to be respected, it will decrease motivation and causes varying degrees of withdrawal.
Tangible realistic relationships for employment connection were scarce (Guest, Conway,
Briner, & Dickman, 1996).
An examination recommended, however, though possibly not intensely empirically
confirmed, that HR policies might be a significant interpreter of worker observations of
their psychological contract with regard to both institutional and employee contentment
with their duties. Precisely, it was contended that a key purpose of HRM is to nurture a
constructive contract and, resultantly, to improve employee promise fulfilment and
enhanced the institution’s bottom line (Katou & Budhwar, 2012; Suazo, Martínez, &
Sandoval, 2009).
It was also found in another study that there were ways in which psychological
contracts could be created as a result of HR functions; this relationship needed to be further
explored (p. 160). This was the intent of previous research on worker’s promise fulfilment
(Suazo et al., 2009).

74
It was argued in the study of Guest (2004) that, despite the generic investigation of
the psychological contracts since last decade, further study was required to develop an
appropriate model for comprehending the relationship between an institution and its
workers. Precisely, more focus should be given to empirical investigations in this area (Pate
et al., 2003), particularly regarding cause-and-effect relationships (Cropanzano & Mitchell,
2005). Baker (2009) further supported the study of institutional and workers’ perceptions
of the psychological contract. Consequently, current research tested a conceptual
framework theorizing that PCF serves as a mediator between CSAs and TP.
Staff tend to fulfil their promises in response to the extent to which institutions
honour their commitments given to employees with regard to the psychological contract
(Coyle‐Shapiro, 2002; Purcell & Hutchinson, 2007; Rousseau, 1995).
Trade-offs comprised an essential element of the psychological contract, meaning
that that workforce definitely answers to promising conduct from their institutions (Katou
& Budhwar, 2012). According to Coyle‐Shapiro and Kessler (2000), when personnel are
confident that the institution violated their stated obligations, this was an adverse effect on
the workers’ willingness to fulfil their promises to the institution.
In the current framework, institutional and worker promised fulfillment were two
dimensions of psychological contracts. Psychological contracts are traditionally classified
as transactional and relational contracts. Psychological contracts were found to be quite
subjective (McDonald & Makin, 2000). Transactional contracts were financial and short-
term in nature and involve readily observable productivity terms, while relational contracts
are simultaneously financial and non-financial and long-term in nature, with non-readily
observable terms. Competitive pay and performance incentive schemes represented
transactional contracts, whereas loyalty, training, and career development are parts of a
relational contract. Psychological contracts of balanced (hybrid) and transitional natures
were further discussed (Rousseau, 1995). The hybrid contract as a combination of
transactional and relational contracts and has been gaining popularity recently, whereas the
transitional contract provides no warranty as to the environment shifts and the use of
technology and globalization become the norms of organizations (Rousseau, 1995).

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2.6 Social Capital (SC)
Though the relationship of pay with HC remains a topic of interest for economists
and management experts, the predictability of another kind of employee capital with
regards to paying had not been accounted for. Besides cognitive abilities and qualifications,
employees had other capacities and assets that helped them to meet their departmental and
institutional targets, which, in turn, led to better compensation. For instance, intelligence
theories revealed that, besides the cognitive intelligence (IQ), social and emotional
intelligence were important (Daniel & Goleman, 2006; Gardner, 1999; Gardner, 2006b;
Goleman, 1995).
According to Baruch-Feldman et al. (2002), organizational behaviour and applied
psychology literature confirmed that people with higher SC and PsyCap were better
performers than other employees, and their better performance demands better pay
packages. In the present research, the researcher measured and discussed various kinds of
social capital in terms of a peer, supervisor, and external SC. Literature also elaborated that
general SC (internal and external) and internal SC in particular (peers and supervisor
support) may helped to improve employees’ performance and lead to higher pay.
The productivity advantages of different forms of SC argued by many researchers
(Fisher, 1985; Gil et al., 2005), and two claims extended to explain that SC has direct a
connection with work performance.
According to Cohen and Wills (1985) and Seers, McGee, Serey, and Graen (1983),
the initial claimed that a professional’s SC assists them in confronting job stress in highly
demanding jobs. Precisely, higher employee SC yielded higher performance. Social
support was especially valued when an individual is under considerable stress. Thus, a
teacher’s SC was crucial for them in HEIs to counter job stress to achieve departmental
and institutional goals. In addition, some teachers relocated, often leaving their families to
live by themselves for some time, after getting a job at a university. Such a situation,
together with few connections or companions owing to odd job routines and requirements,
accentuated the significance of boss and peer help in meeting the stressful demands of the
job; receiving both quantitative and other rewards was also helpful.
Secondly, the theory of social exchange explained the effect of SC on job
productivity. Social exchange theory (SE), which was originally postulated by George

76
Homans in 1958 and later advanced by other theorists (Emerson, 1976), was the most
broadly recognized and used an academic model from a psychological exchange viewpoint.
The standard theory elaborated the link of giving by receiving – for example, more peer
support is given to an employee, which made the employee able to perform efficiently and
effectively (Blau, 1964; Gouldner, 1960). Particularly, the role of supervisor SC in
inferring job output was significant, and researchers argued that employees with social
trust, including that gained by receiving support from within the organization (especially
when it comes from a boss), tend to work harder towards attaining departmental and
institutional goals, recognizing that they were under contract to perform for their employers
(Organ, 1988). Based on these two enriched angles that discuss SC, the research assumed
that SC moderated the link between CSAs and TP, and the present research provide new
empirical testing for the neglected relationship between CSAs and TP in the presence of
SC.
The network was essential for developing SC, as it provided avenues for employees
to work together with each other (Adler & Kwon, 2002). Research found that promotions
were directly linked to SC (Burt, 1997a, 1997b). Furthermore, it was acknowledged by
Seibert, Kraimer, and Liden (2001) that SC was directly linked to certain CSAs. Relying
on two significant notions in SC, the research measures used in the current research (“social
network” and “social trust”) are evaluated in terms of employees’ SC.
Several distinguishing characteristics of SC were likely relevant to university
teachers in HEIs in Pakistan. Initially, HC was primarily seen as an employee resource of
the employee, while SC comes from teams and departments, which, in our case, exist in
the HEIs of Pakistan. Secondly, SC was intangible, unlike HC and financial capital.
Salespeople, managers, teachers, and counsellors draw heavily on their
personal intelligence to perform well (Howard Gardner, 1999; Weller, 1999). SC helped
employees to develop and improved their interpersonal intelligence (Gardner, 2006a).
SC was important for HEIs in the knowledge driven economy of today because it
fulfils their needs for respect, recognition, and friendship in the workplace. Unfortunately,
the literature on management emphasized more on improving processes and technology
rather than on SC development. Hence, it was asserted that some firms had capable
employees, good processes, and easy access to the high technology, but, at the same time,

77
they are compromising departmental and institutional performance due to a lack of SC
among colleagues and between employees and supervisors. These poor relationships
decrease cooperation, and resultantly, individual, departmental, and institutional goals are
not met to the degree to which they could be. In this regard, comprehending the ideas of
SC was highly significant.
SC not mean liking, acceptance, or merely being nice, nor does it mean discussing
each other’s personal details that may cross the boundary between employees’ personal
and professional lives. Rather, discussions about personal lives prevent mutual trust and
healthy relationships between colleagues from forming. Moreover, SC could not be
developed if employees were thinking about the norms of equity and respect in an
organization in a cosmetic way. For instance, if a firm were to state that its employees were
viewed as associated with the organization rather than simply being employees but then
did not engage the employees in the policy-making, this would spoiled the social trust and
social network.
Efficient organizations understand the concept of environmental shifts and invest in
the SC enhancement of employees to get a reasonable return, just as they invest in
manufacturing goods and delivering service to customers. Peers, supervisors, and external
SC were commonly found in firms but their levels fluctuate widely between
firms. SC could decrease expenses incurred on business transactions by strengthening two
key dimensions of SC: the social trust and social networks among employees.

2.7 Compensation Systems Attributes and Teacher’s Performance


Compensation schemes that were prevalent in HEIs and/or adopted by major
competitors indicated which factors should be considered in designing an organization's
pay structure. The nerve epicentre of any university was its faculty, the people who worked
for it. The importance, availability, quantity, and frequency of providing monetary and
non-monetary rewards helped to procure, maintain and retain efficient, motivated, and
high-performing employees. Presently, universities adopt different models for
organizational change and reformation. Teachers’ wellbeing considered through
employing modifications in various components of CSAs besides the work environment.

78
Faculty rewards lead to institutional and individual performance (Fairweather, 1995;
Melguizo & Strober, 2007). Research incentive schemes under CSAs enhance the research
performance of teachers (Fairweather, 2005). Opportunities for growth, work-life
practices, and benefits are considered significant CSAs, in addition to a monthly salary, by
universities’ faculty members. Researchers observed what motivates employees and helped
them prosper (Bakker & Demerouti, 2008; Tait, 2008). Work-life balance arrangements
developed the PsyCap of staff (Luthans & Youssef, 2007; Wang et al., 2009). Both intrinsic
and extrinsic forms of compensation helped to improve the university teacher's
performance (Nyambura, 2108). Researcher explained key factors behind retention of
university teachers in Pakistan and found that total reward positively related to retention
and happiness of the teachers (Akhtar, Aamir, Khurshid, Abro, & Hussain, 2015).
Academic staff in Asia reported considerable intrinsic compensation by helping
students learn (Asian Development Bank, 2010). Adequacy, suitability, and availability of
extrinsic rewards (monetary and non-monetary) ensured the retention of employees and,
subsequently, of their high performance. Thus, to get good performance from teachers in
Asia, effective CSAs must be in a place that allowed reasonable standards of living. In
addition to extrinsic compensation, intrinsic compensation helped universities develop
dedicated and engaged teachers. The core of an excellent compensation system was the
provision of due protocols to teachers (Gappa, Austin, & Trice, 2007). When extrinsic
compensation was inadequate, HEIs would be wise to devise ways to intrinsically
compensate teachers by paying them full respect and regards associated with their work.
Preferred types of compensation differ across universities and countries. To offset the
impact of low base salary, HEIs generally offer other kinds of payments such as housing
supplements or additional rewards to teachers who take on additional teaching loads.
However, housing supplements and limited health care benefits do not compensate for
inadequate base pay (Lee, 2003).
Unsuitable and inadequate academic reward systems unintended consequences for
individual and organizational performance. Research found that the compensation given to
university teachers was insufficient and non-competitive in most countries. To bridge this
deficit, many university teachers earned supplementary income through consultation
services, teaching evening classes, and teaching as visiting lecturers at other institutions.

79
The undesirable consequences associated with this were reduced faculty office hours,
reduced contact with pupils, and reduced time for research, lecture preparation, and
curriculum development. In this situation, some teachers decide to stop teaching altogether,
and even those who stay were not highly motivated or committed (Chapman, 2009). It is
concluded that insufficient remuneration lowers the teacher's performance (Welch, 2007).
Higher education work environments deteriorated since the 1980s (Kinman &
Jones, 2008). Teachers were required to assume a heavy workload and to be underpaid due
to budgetary constraints (Fredman & Doughney, 2012). CSAs, like development, career
opportunities (e.g., tuition assistance, professional development, and sabbaticals etc.)
(Johnson & Papay, 2009), and incentive schemes (Tarquinio, Dittus, Byrne, Kaiser, &
Neilson, 2003) are known to improve TP.
The psychological role of compensation through a university's system of incentives
or disincentives is tied to staff members’ evaluation to modify their behaviour (e.g.,
teaching effectiveness). Increasing the effectiveness of rewards and using objective
indicators for granting recognition rewards work as effective and inexpensive incentives.
In the absence of an effective incentives mechanism, the discretion of administrators might
or might not ignore institutional values (Fenker, 1977).
From the principal-agent model, it was extracted that rewarding teachers based on
objective performance indicators were itself an inducement to boost TP (Franzoni, Scellato,
& Stephan, 2011). It was observed that the values of research incentives were financial and
non-financial in nature. Non-financial incentives were those which have symbolic value
and that signal that setting performance targets are considered to be valuable for the
institution (Kelman & Friedman, 2009). Some unintended consequences of using research-
based incentive mechanisms were that (1) teachers spend more time on research, (2) many
pieces of research have shared authorship, and (3) single articles are often split into two or
more articles. These consequences boost the research performance of the teacher but were
inconsistent with organizational goals (Courty & Marschke, 2011). It is not appreciable
that teaching effectiveness compromised by using more valuable incentives on research, as
this damages the overall worth of the HEIs (Melguizo & Strober, 2007). These incentives
could also boost research performance by increasing the percentage of A*, A, and B
publications from some teachers at the cost of reducing teaching or administrative

80
performance referred to as ‘effort substitution’ (Kelman & Friedman, 2009). It was also
supported through the study in one of the American schools of business by Brickley and
Zimmerman (2001) that modifications to performance driven compensation for TP
improve methodology of teaching, course development, and student feedback, but lacking
research funding resulted in a preference for the volume of published work over quality
(Butler, 2003).
The system of higher learning has a unique description of workload, university
teacher's jobs, and the importance of salary and rewards compared to teaching and research
(Cummings & Shin, 2014). Since working more hours in teaching (or other activities) was
poorly linked to salary in some HEIs, teachers were not inclined to exert extra effort in
teaching and service or administrative activities (Melguizo & Strober, 2007). Advocates of
the multitasking theory suggested that offering monetary incentives based on research
instead of teaching reduces teaching quality. If research, teaching, and service performance
were equally important to institutional qualitative and quantitative values, the incentive
mechanism must enforced that every type of TP is associated with similar marginal benefits
on the basis of faculty members’ performance (Bak, 2015). In recent decades, the
commercialization of academic science by HEIs (Etzkowitz & Webster, 1998) and ranking
competition (Shin & Toutkoushian, 2011) among them drive the research performance of
teachers. Presently, the entrepreneurial role of HEIs was to generate revenue and their
global ranking gauge university performance. Global rankings, like the Times Higher
Education Supplement, Shanghai Jiao Tong, and Champions League (Swiss Centre for
Science & Tech Studies) focused on research but remain relatively unrelated to teaching
methods and student engagement forms.
HEIs in Pakistan faced similar challenges. Here, universities might not be
formulating and enforcing compensation system attributes according to the needs of the
teachers or of the universities themselves. Pakistan lacks the provision in due social
reputation to academics. Social reputation could be increased by boosting the status of
academics through enhanced funding and more empowerment and recognition. Developing
HC through initiating TTS by HEC in Pakistan in 2002 was a challenging and cumbersome
act (Government of Pakistan, 2012). The present study has identified the effectiveness and
acceptability of currently existent compensation systems package designs in the HEIs of

81
Pakistan. As per the HEC’s report in 2012, new compensation systems (e.g., the TTS) offer
many obvious benefits to the faculty. The TTS, among other initiatives, has augmented the
research output of Pakistani teachers taking it to over 10,000 publications in 2016 from
2,000 a year in 2004. However, according to core-2014 outlets, journals are ranked in four
categories: A* (the best), A (better), B (average), and C (below average). The level of A*
has been diminished from 3.84% to 2.21%, and the quality of A dropped from 10.16% to
6.84% from 1996 to 2013 as stated by Saeed (2016) in an article research landscape of
Pakistan in 'MIT technology review'. Hence, only approximately 10% of papers are of high
quality (Saeed, 2016). Therefore, the hypothesis that CSAs influence TP has been made to
study the usage of the said link in HEIs of Pakistan.
Hypothesis (H1): Compensation systems attributes (CSAs) have a positive effect on teacher
performance (TP).

2.8 Compensation Systems Attributes and Psychological Capital


CSAs, such as pay (Bretz, Milkovich, & Read, 1992; Frank, 1985; Dyne & Pierce,
2004) enhanced workers’ PsyCap by signalling to them that were recognized as valued
contributors in the institution (Greller & Parsons, 1995). When an employee views himself
to be a part of officer’s cadre (Lawler & Jenkins, 1992), he inclined to have a positive self-
image (Thierry et al., 2001; Tyler & Blader, 2002). Compensation packages perform a
socio-economic and political role in fulfilling the needs of staff (Adenike, 2009). Core and
fringe compensation communicate the positive features of a compensation program and
resultantly enhanced the purchasing power, status, and power needs of employees (Adeniji
& Osibanjo, 2012). Positive self-esteem helped to supplement PsyCap. CSAs foster the
resiliency part of PsyCap (Bakker & Demerouti, 2008; Cascio, 2009; Gu & Day, 2013;
Luthans & Youssef, 2007; Programme, 2013; Wang et al., 2009).
Similarly, intangible inducements such as training avenues, professional growth, and
tangible rewards (e.g., medical benefits, promotion avenues, and comparative pay and
incentives) lead to employees’ self-efficacy and optimism (Wu et al., 2011). Furthermore,
regular paycheques enhanced one’s hope dimension of PsyCap.
Feedback and rewards increased PsyCap (Schunk, 1991). Employees’ PsyCap and
performance in both volatile and peaceful times were likely to be boosted through the

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implementation of resilience-enhancing HR practices (Bardoel, Pettit, Cieri, & McMillan,
2014). The work of Luthans (2007) and Luthans et al. (2015) also discussed the concept of
“receiving by giving,” by which rewarding by recognizing employees was given and
increased PsyCap is received. In fact, meaningful recognition from one's workplace could
made employees happy (Carter & Tourangeau, 2012), and this feeling linked to enhancing
an individual’s self-esteem.
Opportunities for growth, a healthy and balanced life routine, and promotions were
considered as key alternative CSAs to pay. Researchers now concentrate on what kept
employees motivated and prosperous (Bakker & Demerouti, 2008; Tait, 2008). Work-life
balance facilities developed the PsyCap of employees (Luthans & Youssef, 2007; Wang et
al., 2009; WorldatWork, 2007). A supportive organizational climate, collaboration,
communication, and convenient physical conditions of the schools etc. emerged as
contributor to teacher's PsyCap (Cimen & Ozgan, 2018).
It was important for all sectors in general and services sector, in particular, to follow
and implement HPWS. According to Appelbaum et al. (2000), HPWS incuded "employee
ability-enhancing practices (such as training and skill development) (A), employee
motivation-enhancing practices (including high pay, career development and top-down
information sharing) (M) and practices that give employees the opportunity to involve in
decision making (O)". HPWS such as career and development avenues, flexible work
schedule and performance bonuses provide a platform to enhance motivation and
performance of the employee (Jyoti & Dev, 2016). Same has been supported in the service
sector of India (Ananthram et al., 2018).
The pool of employees' PsyCap emblematically demonstrated as stock (Avolio &
Luthans, 2006) is positively affected by HRM practices. It is on account of the malleability
of PsyCap that staff continue to build or withdraw from their PsyCap inventory that is
expended on attaining and consequential of performance outcomes. Agreeing with the
theory of conservation (Hobfoll, 2001), employees tend to attain and keep the things that
matter the most to them, such as material goods, and social and personal resources. In a
way, job resources, such as management teaching, entrance into specialist/data nets include
organizational affiliations, attending and/or appearances in seminars beyond an individual
field of specialization, shared experiences with local specialists, and official or casual

83
mentoring schemes. In or outside an individual’s institution, employees had their own
individual personal resources, such as hopefulness, confidence, and self-worth. Both types
of resources helped employees to perform better (Bakker & Demerouti, 2008; Luthans,
Norman, et al., 2008a).
CSAs have a positive link to the PsyCap of faculty in the HEIs of Pakistan. Thus, the
researcher hypothesised as follows:

Hypothesis (H2): There is a positive association between compensation systems attributes


(CSAs) and psychological capital (PsyCap) of faculty members.

2.9 Psychological Capital and Teacher’s Performance


Relevant literature also confirmed that employees vary in their positive
psychological states (Luthans, 2002) and individual capacities (Hannush, 2005). Also,
employees with enhanced PsyCap can exercise more control over their tasks and resultantly
give more output in their job (Avey, Reichard, Luthans, & Mhatre, 2011c). Particularly,
current studies in the USA retail industry, management consultancy industry, and an Indian
industry approved that industry workforces whose PsyCap of hope is high perform very
well in their assigned tasks, which has instituted the application of PsyCap into the business
setting (Ho et al., 2013; Rego et al., 2009). Regarding the link between self-efficacy and
productivity in the work environment, a relevant study conducted in the higher education
sector confirmed that university teachers having better degree of self-efficacy perform their
tasks more efficiently, creating the importance of PsyCap to the higher education setting
(Taylor, Locke, Lee, & Gist, 1984; Wang et al., 2014).
Teachers were regarded as transformative intellectuals in an educational institution,
and by developing their psychological capacities, their teaching performance could be
enhanced (Wang et al., 2014). In another recent piece of research conducted in teaching
hospitals in Egypt, it was concluded that worker output could be improved by increasing
the PsyCap of administrators, nurses, and medical consultants (Nafei, 2015). This idea was
also reinforced in another case study conducted on marketers of Vietnam, which found that
improved PsyCap led to better individual performance (Nguyen & Nguyen, 2012). It was
acknowledged that PsyCap was linked to overall employee productivity (Légal & Meyer,

84
2009; Lewis, 2011). A research conducted on multiple industries of China found that
improved PsyCap led to higher level of creativity (Cai, Lysova, Bossink, Khapova, &
Wang, 2019). In another study of sports institutions, PsyCap enhanced the employees' well-
being (Kim, Kim, Newman, Ferris, & Perrewé, 2019).
PsyCap can be theorized as an asset that helps employees control their activities and
feelings in agreement with institutional or departmental goals. This asset encompasses self-
confidence, optimism, hopefulness, and resiliency; people who have high levels of this
resource show better performance than those with low PsyCap.
As current capital was a significant determinant of desirable outcomes (Dutton,
2003), it demanded proper attention for retaining and enhancing a workplace. It was
particularly relevant in those jobs where workers are involved in thoughtful actions and
decision-making processes that demand self-discipline and control (Baumeister,
Bratslavsky, Muraven, & Tice, 1998). In this decade, the same was applicable for HEI
professionals. Moreover, many other professional requirements of teachers in the HEIs
have been shown to contribute to reducing the current capital; these include increased
working hours and reduced salary, fringe befits, and non-worked compensation (holidays,
study leave, and regular job schedules).
As such, studies determined that PsyCap is specifically a key form of capital that
helped HEI teachers cope with the ever-increasing job demands and decreased job
influence, thus leading to good performance. Researchers’ justification for establishing that
PsyCap and employee performance were positively correlated as a result of receiving better
pay was dependent on the PsyCap enhancing and strengthening the principal-agent
relationship hypothesis developed in the field of psychology and management. In a recent
study, it was found that there was a performance difference between employees who were
involved in laborious, thoughtful actions (e.g., accountants) and those whose jobs demand
self-discipline and control (e.g., teachers) (Vohs et al., 2014).
It was observed that when a worker's job requires much regulation and self-control,
that employee’s PsyCap reduced, and their performance and determination in fulfilling
their responsibilities diminish. Therefore, researchers believed that employees who have
enhanced PsyCap ought to maintain and enhance their work productivity due to enjoying
higher non-financial and financial compensation. Current study analysed the influence of

85
PsyCap in the higher education space of Pakistan, and the researcher claimed that teachers
with such strengths will have exceptional research, service, and scholarship performance.
Most of PsyCap research was done in the manufacturing industry and have frequently
tested the influence of hope, efficacy, resilience, and optimism independently. Research in
university settings were relatively sparse (Ganotice, Yeung, Beguina, & Villarosa, 2016).
Sun et al. (2012) noted that high PsyCap enhances the productivity of employees in the
service organizations of China. The same could be applied to the service sector, which
includes HEIs.
The researcher, through this research investigated PsyCap and its relationship with
employee output among universities faculty in Pakistan. Prior research demonstrated that
people with more PsyCap are more task-motivated, undistracted by difficult working
conditions, and stable in confronting hurdles than their low PsyCap counterparts.
Positive human resource capacities and strengths referred as positive organizational
behaviour, and these could be evaluated, enhanced, and properly administered to yield
desired productivity levels (Nelson & Cooper, 2007; Snyder & Lopez, 2009; Turner,
Barling, & Zacharatos, 2002). Workers with elevated self-esteem appear to have rich
psychological assets that enhance productivity standards in virtually all job functions
(Bandura, 1977, 1989).
Therefore, previous studies demonstrated that faculty members with enhanced
PsyCap are highly motivated towards achieving their goals. These workers were less
diverted by challenging job environments and were much more consistent in confronting
impediments when compared to their colleagues who have low PsyCap.
Examining the link between PsyCap and performance of teachers would enriched the
current literature. Results were meaningful within the context of Pakistan’s HEI sector, as
they helped build a customized performance-oriented and acceptable system for boosting
teachers’ research, teaching, and administrative performances.
It was important for all sectors in general and services sector, in particular, to follow
and implement HPWS. According to Appelbaum et al. (2000), HPWS included "employee
ability-enhancing practices (such as training and skill development) (A), employee
motivation-enhancing practices (including high pay, career development and top-down
information sharing) (M) and practices that give employees the opportunity to involve in

86
decision making (O)". HPWS such as career and development avenues, flexible work
schedule and performance bonuses provide a platform to enhance motivation and
performance of the employee (Jyoti & Dev, 2016). Same has been supported in the service
sector of India (Ananthram et al., 2018).
Agreeing with the theory of conservation (Hobfoll, 2001), employees tend to attain
and keep the things that matter the most to them, such as material goods, and social and
personal resources. In a way, job resources, such as management teaching, entrance into
specialist/data nets include organizational affiliations, attending and/or appearances in
seminars beyond an individual field of specialization, shared experiences with local
specialists, and official or casual mentoring schemes. In or outside an individual’s
institution, employees with their own individual personal resources, such as hopefulness,
confidence, and self-worth. Both types of resources helped employees to perform better
(Bakker & Demerouti, 2008; Luthans, Norman, et al., 2008a).
So, a build of PsyCap reserve of an employee provided incremental ability and a
stronger base to derive strength from and achieve best performance going forward.
Likewise, PsyCap depletion might negatively affected the ability and resources of the
employee to perform better in future. For instance, PsyCap of an employees, symbolically
could be considered as an account in the bank (Avolio & Luthans, 2006). Given the
variability of PsyCap influenced with the environment, the person and the narrative that
PsyCap reflected tools and resources maintained by an individual in a bank account with
check-in and out option for his or her goal achievement. With this in mind, one could safely
argued that PsyCap and staff performance were correlated. Aligned with the prior research,
it was hypothesized that PsyCap influenced employee performance.
Hypothesis (H3): Psychological capital (PsyCap) has a positive effect on teacher
performance (TP).

2.10 Compensation Systems Attributes, Psychological Capital and


Teacher’s Performance
A theoretical relationship between CSAs and TP is observed in the work of Luthans,
Norman, et al. (2008a). They examined and found a mediating role of PsyCap on
supportive organizational climate and individual output. Thus, their study supported the

87
idea that linkage between CSAs (compensation, benefits, work-life, etc.) and TP (research,
teaching, and service) is influenced by PsyCap in the proposed model. PsyCap appears to
be a significant mediator, as it is more individual specific, especially where a supportive
organizational climate or the CSAs are considered to be outside the control of the
individual.
Similarly, a theoretical link between CSAs and TP can be inferred from the study of
Renn and Vandenberg (1995). They studied the job characteristics framework put forth by
Hackman and Oldham in 1980. Through their investigation, they determined that
psychological conditions mediates between key job attributes and individual performance
(Renn & Vandenberg, 1995). Critical psychological stated that include job characteristics
were therefore linked to intrinsic compensation. The identity, significance, and variety of
the task affect the perceived meaningfulness in one’s job. While job characteristics, like
autonomy and feedback, demonstrate the degree of responsibility and job confidence due
to the job. Their findings provided some support for the model of the current research,
where PsyCap acted as a mediator between CSAs (intrinsic and extrinsic) and TP. More
specifically, intrinsic compensation and CSAs are variables that were outside of
employees’ control. So, linking PsyCap that was individual-specific with either job
characteristics (as in Renn and Vandenberg (1995)) or CSAs in the current study was
significant.
PsyCap means developable and malleable resources of employees (Seligman, 2002).
CSAs enhanced PsyCap by signalling status increases (Greller & Parsons, 1995). When an
employee viewed himself to be a part of the officer’s cadre (Lawler & Jenkins, 1992),
he/she inclined to have a positive self-image (Thierry et al., 2001). Meaningful recognition
makes people felt valued (Chan & Morrison, 2000) and increases their PsyCap. Incentive
schemes (Earley & Lituchy, 1991), training on the job, and mentoring (including
psychological capital interventions (PCIs)) (Luthans et al., 2010) positively affected
PsyCap and employee performance. By investing in human, social, and positive PsyCap
management, a firm could attain competitive advantage (Luthans & Youssef, 2004).
Rewards also improved employees’ PsyCap of self-efficacy (Schunk, 1991). Ferraro,
Moreira, dos Santos, Pais, and Sedmak (2018) reported that decent work affect PsyCap,
which offers work motivation and resultantly performance.

88
The model of Gardner, Dyne, and Pierce (2004) proposed that CSAs affect self-
esteem, and subsequently, self-esteem affects self-efficacy, which affects work
performance. Their results generally endorsed that the PsyCap is a mediator and, to an
extent, the suggested mediation of PsyCap in relation to linkage between CSAs and TP.
When compared with pessimists, optimists receive the maximum benefit from
knowledge-enhancing avenues, like tuition support and innovative technology teaching,
and from coaching/mentoring activities, such as leadership training, attending seminars
outside an individual’s field of specialization, and receiving contact with local specialists
who could helped them follow their targets under adverse circumstances (Wrosch &
Scheier, 2003). Derivatives of work engagement included job resources and individual
resources (besides self-efficacy) that enhanced an employee’s psychological energy and
excitement. Job resources could be referred to as peer-social capital, supervisor-social
capital, job characteristics (feedback, task diversity, and independence), and growth
prospects (Bakker & Demerouti, 2008). Moreover, job resources (productivity response,
communal support, and mentoring) play both intrinsic and extrinsic motivational roles in
meeting the basic needs of employees. CSAs helped employees to become self-efficacious
(Schay & Fisher, 2013; Turban & Keon, 1993). In a study of an Indian business process
outsourcing company, it was concluded that employees who had more hopefulness execute
their services better than those whit low levels of hopefulness (Ho et al., 2013). PCIs help
to improve individual PsyCap and, resultantly, output (Luthans et al., 2010; Peterson et al.,
2006). Health and well-being practices developed the PsyCap of the employees (Luthans
& Youssef, 2007; Wang et al., 2009).
Agreeing with the theory of conservation (Hobfoll, 2001), employees tend to attain
and kept the things that matter the most to them, such as material goods, and social and
personal resources. In a way, job resources, such as management teaching, entrance into
specialist/data nets include organizational affiliations, attending and/or appearances in
seminars beyond an individual field of specialization, shared experiences with local
specialists, and official or casual mentoring schemes. In or outside an individual’s
institution, employees had their own individual personal resources, such as hopefulness,
confidence, and self-worth. Both types of resources helped employees to perform better
(Bakker & Demerouti, 2008; Luthans, Norman, et al., 2008a). In a way, job resources can

89
also add to individuals’ personal resources, such as hopefulness, confidence, and self-
worth. Subsequently, these resources helped employees to perform better (Bakker &
Demerouti, 2008; Luthans, Norman, et al., 2008a).
It was important for all sectors in general and services sector, in particular, to follow
and implement HPWS. According to Appelbaum et al. (2000), HPWS incuded "employee
ability-enhancing practices (such as training and skill development) (A), employee
motivation-enhancing practices (including high pay, career development and top-down
information sharing) (M) and practices that give employees the opportunity to involve in
decision making (O)". HPWS like career and development avenues, flexible work schedule
and performance bonuses provided a platform to enhance motivation and performance of
the employee (Jyoti & Dev, 2016). Same had supported in the service sector of India
(Ananthram et al., 2018).
A meta-analysis reported a direct correlation of 0.38 between productivity and self-
efficacy (Stajkovic & Luthans, 1998). Furthermore, hopefulness degree of both managers
and associates were positively linked to performance (Luthans & Jensen, 2002; Peterson
& Luthans, 2003).
When the type of the duty was boring, contains several directions, and demands a
high level of self-discipline, employees’ psychological drive and self-esteem become
exhausted, and their output and determination in succeeding at their jobs decrease
(Baumeister et al., 1998; Wan & Sternthal, 2008). Organizations could boost PsyCap from
implementing onsite exercise wellness programs and family-friendly benefits, such as
childcare facilities. According to the list of “Best Places to Work,” for example, the benefits
of Google and software form SAS prove that employees’ well-being could be achieved
through fostering their PsyCap and that this could lead to higher performance (Luthans,
Youssef, & Avolio, 2015, p. 62).
Investing in teachers’ PsyCap was an emerging phenomenon. Employees with
enhanced PsyCap could exercise more control over their tasks and, resultantly, give more
output (Luthans, Avolio, et al., 2007). Particularly, current studies in the American retail
and management consultancy industries as well as an Indian industry revealed that industry
workforces whose PsyCap of hopefulness high perform very well in their assigned tasks,
which has instituted the application of PsyCap in many business settings (Ho et al., 2013;

90
Peterson & Byron, 2008; Rego et al., 2009). Regarding linking self-efficacy to productivity
in organization, a recent research conducted in the higher education area confirmed that
university teachers with better levels of self-efficacy were performing their tasks quite well,
which highlights the significance of PsyCap in higher learning settings (Taylor et al., 1984;
Wang et al., 2014).
Teachers were regarded as transformative intellectuals in an educational institution,
and by developing their psychological capacities, their teaching performance can be
enhanced (Wang et al., 2014). In another recent piece of research conducted in teaching
hospitals in Egypt, it was concluded that individual output can be increased by enhancing
the PsyCap of administrators, nurses, and medical consultants (Nafei, 2015). This idea was
also reinforced in another case study conducted on marketers of Vietnam, which found that
improved PsyCap lead to better individual performance (Nguyen & Nguyen, 2012). Sun et
al. (2012) observed that increased PsyCap improves worker's performance, as found in the
service sector of China. Most of this research was done in the manufacturing industry and
tested the influence of hope, efficacy, resilience, and optimism independently. Research in
university settings was relatively sparse. The current work added to filling this knowledge
gap by measuring the mediating effect of collective PsyCap. Research in universities
settings are underexplored (Ganotice et al., 2016).
PsyCap in HEIs was underexplored (Ganotice et al., 2016). It was also recommended
that even if most of the jobs are contractual with less job security, organizations could
invest in its employees by offering them various strategies that helped them find new
employment and career growth opportunities (Hind, Frost, & Rowley, 1996). An asset-
intensive human resource development policy could improve resilience and enhanced the
job-seeking ability of the workforce by compensating them through tuition fee
reimbursements and learning and career development opportunities (Luthans et al., 2006).
Compensation improved the self-esteem of employees (Carter & Tourangeau, 2012;
Froman, 2010; Greller & Parsons, 1995; Kalisch et al., 2010; Maslow, 1943; Thierry et al.,
2001; Tourangeau et al., 2010; Tyler & Blader, 2002). Positive self-esteem enhanced
PsyCap, in turn, improved job performance (Froman, 2010). Investing in PsyCap improved
the bond between teachers and the university and eventually improves TP as well.
Empirical evidence showed that pay system attributes directly affect productivity (Gneezy

91
& Rustichini, 2000; Hechler & Wiener, 1974), which, at times, moderated by constructs
such as self-esteem (Brockner, 1985). Positive human resource capacities and strengths
were referred as positive organizational behaviour, and these could be evaluated, enhanced,
and properly administered to yield desired productivity levels (Nelson & Cooper, 2007;
Snyder & Lopez, 2009; Turner et al., 2002).
Moreover, the theoretical concept behind PsyCap having a mediating nature in
relation to the link of CSAs and TP is also based on the conceptual sequence of the
framework hypothesis. As discussed earlier in the preceding, researchers proposed that (a)
CSAs affect TP, (b) CSAs affect PsyCap, and (c) PsyCap affects TP. Researcher proposed
that CSAs influenced TP by virtue of their effect on PsyCap. Thus, it was hypothesized
that:
Hypothesis (H4): psychological capital (PsyCap) mediates the effect of compensation
systems attributes (CSAs) on teacher performance (TP).

2.11 Compensation Systems Attributes and Psychological Contract


Fulfillment
According to Guzzo and Noonan (1994), strategic HRM schemes, including
compensation, affected the psychological arrangement. Remuneration mechanisms were
influential tools in the success of a psychological contract. Employees were not happy with
the quantum of compensation received, as these were often lower than perceived.
Employees wish to be a part of human-resource-welfare-oriented institutions that were fair
and ethical in their treatment of employees (Cropanzano, Ambrose, Greenberg, &
Cropanzano, 2001; Folger & Cropanzano, 1998; Milkovich & Newman, 2005).
Remuneration packages were primarily managed and regulated by the key personnel, and
the majority of employees expected their organizations to meet the minimum standards of
compensation (Bloom, 2004; O’Meara, 2011). However, this was the case of workers in
industrial and organizational settings, not in HEIs.
University teachers were unique and should be offered a well-designed compensation
package. Strategic remuneration policies were directly connected to the psychological
contract (Anvari, Mansor, Rahman, Rahman, & Chermahini, 2014). It was described that
the executive’s remuneration criteria (pay-for-performance) violated the relational type of

92
psychological bonding while offering golden parachutes to uphold the executive’s
relational psychological contract (Kidder & Buchholtz, 2003). Violations occur due to a
lack of employment safety, remuneration, and avenues for growth (Turnley & Feldman,
1999). It was seen that poorly defined exchange relationships cause both the employer and
employees to not completely comprehend the fulfilment of promises from each other.
Rich empirical insights evidence the custom of mutual benefit (‘the more I receive,
the more I provide’), depicting that offering payments increases good decisions as well as
good behaviour (Backes-Gellner & Schlinghoff, 2008; Cason et al., 2010; Gomez-Mejia
& Balkin, 1992; Heneman III & Milanowski, 1999; Homans, 1961b; Kunz & Linder, 2012;
Vroom, 1964). Types of compensation, policies for granting pay raises, and benefits
increase the PCF level of university teachers. An employment relationship depicts whether
teachers and universities were fulfilling their respective promises.
Hypothesis (H5): There is a positive association between compensation systems attributes
(CSAs) and psychological contract fulfilment (PCF) of the faculty.

2.12 Psychological Contract Fulfillment and Teacher’s Performance


University teachers felt that if they had a sufficient level of PCF, which included
meeting their own promises and having the universities promised to them also met, they
perform better. PCF was positively linked to employee performance (Yongjing et al.,
2010b). If employers gave small salary increases, few avenues for growth, and did not
enhance benefits, employees would not fulfil their end of the employment contract
(Robinson, 1996; Rousseau, 1995).
Oppositely, when given unpredictably high increases in salary, improved avenues for
growth, and better benefits, employees perform better (Homans, 1961a; Wayne, Shore, &
Liden, 1997). The inferences drawn from the theories of social exchange and equity were
in congruence (Adams, 1963, 1965). However, both theories recommend that the
probability of viewing under-fulfilment appeared to be higher than the probability of
viewing over-fulfilment. The proportion of decreased productivity in situations of under-
fulfilment was quite high (Carrell & Dittrich, 1978; Goodman & Friedman, 1971). Thus,
it was evident that PCF helped to improve TP.

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Hypothesis (H6): Psychological contact fulfilment (PCF) has a positive effect on teacher
performance (TP).

2.13 Compensation Systems Attributes, Psychological Contract


Fulfillment and Teacher’s Performance
According to the report "Higher Education Faculty in South Asia" by Chapman
(2009), faculty members were currently experiencing contradictory and possibly
irreconcilable demands, owing to the manifold contribution of HEIs worldwide.
Academics to teach larger classes and conduct more research than they have had to in the
past. They required to serve on several committees within institute even though they are
given less time for this. They required to teach students with below average or average
aptitudes while guaranteeing these students that they would be polished and refined enough
to easily find employment or to start their own business soon after their graduation.
They supposed to have more SKAs in the workplace, but they might be assessed by
a biased and subjective performance appraisal system. They might be required to do more
research under a compensation system where rewards linked to teaching performance (e.g.,
teaching load). Even their teaching performance compromised, as they allocated time on
research at the cost of teaching preparations because HEIs prefer research output over
teaching quality. In this regard, the CSAs discussed in the present study should be
understood as supplementary prototypes of people management strategy and perhaps as
additional contributors to the enhancement of the PCF level of university teachers.
Drawing from the work of Guest and Conway (2004) and Purcell, Kinnie, and
Hutchinson (2003), Figure 1 depicted a conceptual model connecting CSAs and TP through
the state of psychological contact. This had been further supported in various pieces
research which has shown that effective people strategies shape employer and employee
promise fulfilment and lead to institutional and individual performance (Rousseau, 1995).
This might also provide some evidence for the association between CSAs and TP through
PCF (Suazo et al., 2009).
The emphasis an organization places on career and development avenues was a clear
signal of the extent to which the institution values long-term partnerships with its
employees (Gomez-Mejia, Balkin, & Cardy, 2004). Each category of rewards aimed to

94
produce a psychological agreement through building reliance that the institution takes care
of their monthly compensation and deferred compensation (Gomez-Mejia et al., 2004).
Effective employee relations management motivated employees, who then reciprocate by
fulfilling their commitments to the institution (Robinson & Rousseau, 1994). The
psychological agreement meant “perceptions of the employees and employers regarding
employment relationship” (Robinson & Rousseau, 1994). PCF defined as “employees
perceptions that the organization providing what it promised” (Turnley & Feldman, 1999).
It was argued in the studies of Guest (2004) and Baker (2009) that, despite the generic
investigation of psychological contracts in the past decade or so, further investigation is
required to shape-up a robust conceptual model for comprehending the relation between
an institution and its workers. Specifically, more focus should be given to empirical
investigations in this area (Pate et al., 2003) in order to inspect cause-and-effect
relationships (Cropanzano & Mitchell, 2005). Consequently, the present research tested a
conceptual framework theorizing the mediation of PCF between CSAs and TP.
Remuneration mechanisms were influential tools in the success of a psychological contract.
Employees were not happy when the compensation they received lower than they
perceived it would be. Employees wished to be a part of human-resource-welfare-oriented
institutions (Bloom, 2004). University teachers were unique and should be offered well-
designed compensation packages. Rich empirical insights depict that offering benefits
improve employees’ attitudes, thoughts, and behaviours. Availability, suitability,
adequacy, and a variety of rewards increase the level of PCF of university teachers.
An employment relationship described whether teachers and universities were
fulfilling their respective promises to each other. If university teachers perceive a sufficient
level of PCF, they tend to perform well. PCF increases an individual’s output (Yongjing,
Huixin, Zheng, & Baoshan, 2010a). Katou and Budhwar (2012) have shown the link
between HR policies and institutional output with a mediator of PCF in the service sector
in Greece. The conclusion not only backs the idea that HR policies (especially
compensation policies) directly affected organizational productivity and helped to fill the
gaps in the prevalent work with regard to managing the association between human
resources and output in a non-US/UK perspective. It was recommended that this
phenomenon is further explored in other contexts.

95
Historically, the impact of CSAs on the individual rather than organizational
performance was evaluated through the intervening mechanisms of PCF in the context of
HEIs in Pakistan, as per the following hypothesis.
Hypothesis (H7): Psychological contract fulfilment (PCF) mediates the effects of
compensation systems attributes (CSAs) on teacher’s performance (TP).

2.14 Moderating Role of SC on the Relationship between CSAs and TP


In the 1990s, much literature discussed the association between educational
outcomes and SC (Yang, 2016). There are various kinds of SC, such as school SC and
family SC. Here, the researcher emphasises employee SC, which was not explore as
extensively as other kinds of SC.
According to Chen (2011), SC is defined as social network and social trust. In the
current study, the researcher measures and discusses peer, supervisor, and external SC.
Different distinguishing characteristics of SC are linked to this research of university
teachers in the HEIs of Pakistan. HC was primarily the resource of the employee, while SC
comes from teams and departments, which in our case, exist in the HEIs of Pakistan.
PsyCap and creativity relationship was dependent on improved supervisor support and
better job characteristics (Cai, Lysova, Bossink, Khapova, & Wang, 2019).
Secondly, SC, unlike HC and FC, was intangible. SC is important for HEIs, as it
fueled the knowledge-based economy and fosters respect, recognition, and friendship
needs in the workplace. Leana and Pil (2006) stated that both internal and external SC
promote TP in schools.
Horizontal relationships described along several dimensions. First, having a more
relationship among employees helped faculty members attain a wider array of viewpoints.
Second, employees with many colleagues in their discussion networks have considerably
more compensation (Carroll & Teo, 1996). Peer recognition was also found to be very
important for faculty productivity (Dunkin, 2003a). Papa (1990) argued that workers who
was good at communicating in the workplace was more inclined to accept and use
information technology development in their organizations, and this eventually resulted in
improving the bottom line of the school. Meverson (1994) concluded that Swedish
managers who concreted relationships with their colleagues had improved levels of

96
compensation and performance. Thirdly, the theory of social exchange depicts the outcome
of SC on job productivity; the typical theory elaborated the link of giving by receiving –
for example, giving more peer support to the employee makes them able to perform more
efficiently and effectively (Blau, 1964). SC can enhanced performance at the employee
level. Performance depended on friendly relationships among colleagues and with one’s
boss and the institution as a whole; these were forms of internal SC. Networking between
the employee and people outside his/her organization was external social capital and also
influenced the staff performance.
The high SC of teachers, particularly at the senior level, in universities led to better
performance when compared to teachers at the junior level. This was because, teachers
universities at the senior level more than those at the junior level tend to use their
connections within the university, community, public, and private research institutes to
enhance their research, teaching, and administrative performances. To conduct research,
they accessed to peer-reviewed and non-peer-reviewed journals, thus improving their
chances to publish several per year. World Bank reported that the merit of a paper was not
always considered when a piece of research submitted for publication; often the networking
of the faculty member and his/her administrative positions in relation to the editors
determine the probability of the research being published.
Handling administrative tasks (e.g., heading the committee of industry-university
linkage and hostels) during the organization of conferences and convocations requires good
networking outside the organization to complete and executed the tasks successfully on
time. For better teaching performance, these employees could arrange many on account of
their network outside their organization. They could also acquire teaching material support
from their counterparts and learn from their practices. So, adding SC to HRM policies can
result in better output. This relationship needed to be measured to empirically determine
how SC moderated between CSAs and TP. It would be interesting to see how CSAs affect
TP in the presence and absence of SC.
Based on the discussion above, this study assumed that SC moderated the link
between CSAs and TP.
Hypothesis (H8): Social capital (SC) moderates the effect of compensation systems
attributes (CSA) on teacher performance (TP).

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2.15 Identification of Knowledge Gap
The most exciting and interesting thing about knowledge was that it went beyond
preconceived boundaries and limitations and embraces new ideas openly. After reviewing
the relevant literature and theories, the study identified a few gaps in the existing body of
literature, which covered in this thesis.
Teachers presumed to be the core service delivery link in the entire education
services supply chain. Therefore, inadequate compensation systems, especially as they
affect teachers, expected to hinder the attainment of the governmental, university,
departmental, and individual performance objectives, particularly in public sector
universities.
As per the HEC, so far, not a single Pakistani HEI is listed among the top 500 best
higher learning organisations globally, which showed the gravity of the situation. Such a
situation, when reading in conjunction with the preceding discussion, necessitated
structured research to measure teacher motivation and allegiance for performing at a
desirable level. In this context, the aforesaid research investigated the key factors behind
non-appealing performance indicators (academic, research, administrative) of government
and privately run HEI's of Pakistan and its relationship with reward and recognition
systems.
Most research discussed the principal-agent link by considering employees’
attitude changes rather than behavioural changes. PsyCap investigations have emphasized
more on limited span training initiatives and the role of leadership in building
psychological self-efficiency, hope, and resiliency and, subsequently, individual
productivity. Recently, PCF became the focal point of research in this field. In this regard,
the current research emphasised the institutional fulfilment of terms and conditions as
viewed by the employees of organizations, who were also supposed to fulfil their part of
the terms and conditions as outlined in the contract.
Although TP was a thoroughly explained concept, the impact of CSAs on this
variable never investigated extensively. Certain recent studies encourage research on
associated variables, like PsyCap, PCF, and SC, on TP. Moreover, in relation to HEIs in
Pakistan, these variables remain understudied. Such a gap demands an empirical study on
these variables, promising optimization in the literature and new findings for policymakers.

98
Understanding some of the pertinent theories is quite relevant here, as they aid
comprehension of the theoretical foundations of this research, and hence, these theories
were covered herein.

2.16 COR Theory


Theme of COR theory suggests that persons made efforts to secure, maintain, impart,
and safeguard those matters to which they attach centrally a value. COR theory was
basically a pro-motivation piece of work that explained great deal of human behaviour in
relation to the quest for acquisition and conservation of resources to sustain, a core attribute
enshrined in human nature. Researchers endeavoured to pinpoint the categories of
resources that were the most central to employees, and they sufficiently acknowledge the
contribution in this field is Hobfoll’s COR theory. This notion advocated that people
possessed a diverse resources, including tangible assets (e.g., vehicle, work instruments),
social attributes (e.g., duration, job, level of seniority), personal attributes (e.g., core skill
set and personal characteristics like self-efficacy and optimism), and emerging means (e.g.,
loan, insights and knowledge, wealth), which were linked to work-related achievements.
Furthermore, to obtain and retain these means and resources, there is a need to inject a
sense of being capable to meet immense challenges at people, family and organizational
level. Hobfoll, Halbesleben, Neveu, and Westman (2018) talked about a study highlighting
an inverse linkage between fiscal constraints, sense of social exclusion, and decline of
PsyCap among those seeking jobs on the one side, and desire to stay with the employer and
remain committed on the other side (as cited in Lim et al. 2016, pp. 70-71). Likewise,
PsyCap preservation is also connected with improved work-life balance over the period
(Siu, 2013). On the contrary, decline in PsyCap serves as a stress booster when employees
face an abusive form of supervision (Lim, Chen, Aw, & Tan, 2016).
COR theory's first principle argument suggested that loss of means and resources is
significant that corresponding gain (Lee & Ashforth, 1996). Once can infer that there were
severe implications associated with this principle. By way of example, pay reduction or
loss considered more damaging in comparison to the impact any pay raise would have
caused. It also highlighted that that job related resource gains have stronger worth in the
backdrop of loss of resource (Vinokur & Schul, 2002).

99
COR theory's second principle suggested that resource investment is required to
hedge against or recover from already incurred losses, and also build resources (Ng &
Feldman, 2013).
Hobfoll (1998, 2001a) explained various outcomes of the resource investment
process for ease of understanding the underling complex nature of the concept.
1. Persons with better resources are relatively well stationed for gaining resources.
2. Persons having lesser resources are expected to face greater resource loss
(Whitman, Halbesleben, & Holmes, 2014).
3. Initial loss in resources points towards future resource losses and vice versa
(Demerouti, Bakker, & Bulters, 2004).
As highlighted above, Hobfoll (1988, 1989) defined attributes as aspects which
persons appreciate, focus on tangible items, status, etc. Constructive segments of
psychological capital included (1) reward and incentives (J. Shin et al., 2012), (2) decision
power, skilfulness and empowerment (Diestel & Schmidt, 2012), (3) avenues for
development (Xanthopoulou, Bakker, Demerouti, & Schaufeli, 2009), (4) representation
in decision formulation (Lee & Ashforth, 1996), and (5) resilience (Shin et al., 2012).
Social support category of psychological resources included boss, peer, employer, marital,
client, etc.) (Chen, Siu, Lu, Cooper, & Phillips, 2009). Paid leaves, experience of recovery
and energizing (Mojza, Sonnentag, & Bornemann, 2011). Family-Friendly Workplace
Policies (Payne, Cook, & Diaz, 2012)
This theory disproved by the few researchers for its skipping the personality traits
(Hobfoll, 2001) and having limitless resources and neglecting SC as a category of resource
(Adeola, 2003). In fact, people could not bypass the influence of personality (like that for
neuroticism) and be driven by a few key resources (like object and condition resources)
including social capital. By and large, it treated as a comprehensive and more acceptable
model for boosting motivation.

2.17 AMO Theory


Motivation and ability-enhancing theories explained how motivation, ability and
opportunity to participate are enhanced. Bailey (1993) put forth the theory of AMO, which
was later advanced by Appelbaum et al. (2000) among other scholars. This was the most

100
broadly recognized and used from this viewpoint and is found on three grounds: (1) ability
(A), (2) motivation (M), and (3) opportunity (O). In this model, the first factor, ‘ability,’
referred that people perform well when they had the capabilities. The next factor,
‘motivation,’ is found on the premise that people should have adequate motivation. Finally,
‘ability’ referred to their work environment provides opportunities to participate. Precisely,
if the employees were less capable, don’t have enough motivation level and confront a poor
job culture to participate, they are unlikely to inspire the employee to apply more exertion
for better performance.
This model was often used to comprehend the planning and consequences of HPWS.
The theory was based on a human resource management framework of individual conduct
and presumes that employees put their energy, talent, and time in return for the HPWS by
the organization. They practice their preferred behaviours within a range of promising
attitudes (e.g., within an institute, greatly proficient employees may be encouraged or act
in a different way than new hires). The theory identified the variance among employees
and among HPWS. It also effectively described why employees are greatly encouraged
when definite HPWS was given.
The theory by Appelbaum et al. (2000) had important repercussions as to how human
resource management and compensation experts devise HPWS, such as pay, training and
development schemes, to yield the desired levels productivity. The administration needs to
make sure that their staff had the proficiency to perform the required services and to trust
that they can perform these services. Therefore, career development and learning
opportunities, task responsibilities, and performance feedback are significant. The theory
by Appelbaum et al. (2000) also proposed that staff should view the HPWS are
instrumental for their labour. They had to believe that the desired output brings desired
motivation on account of HPWS. Superiors could foster this belief by implementing
HPWS, such as bonuses and work-life and recognition schemes, together with mentoring
so that staff members can see that they would be compensated for achieving a desired level
of output. With regard to significance, the HPWS themselves should be of worth to the
staff member. The administrator must consider specific individual preferences that appear
reasonable regarding the particular performances that the company wished to increase.

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Further analysis of AMO theory, explained the ensuing settings which need to be
fulfilled if HPWS was to actually had influenced on employee behaviour:
1. Performance should be honestly assessed. If it not, then members of the staff
cannot established the apparent connection between HPWS and output, ultimately
leading to motivation.
2. HPWS should be of worth for employee. For individuals to achieve the desired
degree of output, the final outcome of such behaviours should be worth mentioning
or should have affirmative valence. Therefore, HPWS such as compensation
system valence than unusual results, such as leisureliness, have. If a compensation
system valued less than leisureliness, at that time, an individual would be less
encouraged to behave in the desired way as compared to when they are offered
extra time off the work.
3. The link between CSAs and desired behaviours should be conveyed as clearly as
possible.
4. To augment desired behaviours, the proper avenues had to be in place.

2.18 Social Exchange Theory


The research design devised to study the positive relationship between CSAs and TP
alongside the PCF and PsyCap as mediators in the context of CS and TP relationship. This
study in particular tested TP of HEIs in Pakistan. In this context, SE theory regarded as one
of the core theory for this research. SE theory described how relationships evolve over
period and professional anticipated to behave in terms of their commitment for resources
and compensation they receive from their employers. Rightly consistent with the
discussion on PCF as bi-directional connection between the employee and employer
(Robinson et al., 2004). This theory is linked to PCF and other related variables of interest.
Social exchange theory (SE), which was originally postulated by George Homans in 1958
and later advanced by other theorists (e.g., Blau, 1964; Emerson, 1976), is considered as
broadly recognized and used academic model from a psychological exchange viewpoint
and is expressed based on a few key characteristics – give-and-take of behaviours, whether
they are physical or non-physical and differences in pay between two or more people
(George & Homans, 1961).

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From economic and utilitarian perspectives, reinforcement principles have been
advocated by Blau and Homans respectively. Blau believed that if people engrossed
excessively on the psychological notions inside the theory, they would abstain from
understanding the emerging features of societal give-and-take (Emerson, 1976). Blau
(1964) also stressed mechanical economic examination, while Homans (1961a)
emphasized the mind-set of contributory performance. Emerson (1976) initial study on the
theory entangled both theorist's considerations. Homans (1961a) assumed that social
exchange theory relied on reinforcement ideologies. It sights interchange as a universal
activity that can affect fiscal and societal results (Lambe, Wittmann, & Spekman, 2001).
The microeconomic viewpoint of the theory was presented by Blau (Cook & Rice,
2001). In his perception, each employee puts efforts into their work to increase their
compensation. Blau (1964) indicated that as soon as this idea is agreed upon, social
exchanges are likely to be seen everywhere – not only in marketplace dealings but also in
supplementary societal relationships, like companionship (Burns, 1973).
The social exchange procedure carries fulfilment when individuals get the proper
proceeds for their output. The main distinguishing feature between societal and commercial
give-and-take was the type of interchange that exist amid people. In comparison to
monetary give-and-take, the components of societal give-and-take are diverse and not
easily quantified. Simple social exchange frameworks promote the idea that compensation
and expenditures induce link choices. In social exchange, both the employer and employee
assume an obligation for and rely on one another. The components of a relational contract
were as follows:
1. Costs were the components that have negative value, such as the use of energy,
time, and resources by one party.
2. Revenues were the components of an association that have positive worth, such as
a sense of recognition, backing, and friendship.
The social exchange viewpoint contended that individuals ascertain the whole value of
a specific association by deducting its expenses from its revenues (Monge & Contractor,
2003).

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Worth = Rewards − Costs
When rewards were greater than expenditures, it was a good relationship. If vice
versa, the relationship was negative. The value of a connection affects its result and whether
persons would maintain a connection. Positive links were likely to be sustained, while
negative links were more likely to end. In a reciprocally advantageous give-and-take
relationship, each group meets the needs of other at a least price to itself than the worth of
the contribution the counterpart makes. In this framework, the reciprocal relationship
fulfilment confirmed association firmness.
Result = Compensations − Expenditures
Homans linked his theory to behaviourism to find that individuals follow
compensations to reduce expenditures. The satisfaction from the net income that an
individual earns as a result of a give-and-take connection is assessed in relation to some
measure, which might differ from individual to individual (Lambe et al., 2001).
Research by Saks (2006) clarified the jobs of the workforce within an institution.
The research utilizes SE theory to describing that responsibilities are given via an array of
exchanges amid individuals based on their condition of mutual dependence. It is evident
that employees, upon receiving fiscal, social and emotional credits from their institution,
are determined to fulfil their own promises towards the institution. One mode for workers
to payback their institution is through the degree of commitment they have with the
organization. Highly committed employees to offer all their available psychological and
physical strengths to perform their jobs. When the institution is not able to give monetary
or emotional resources, it becomes probable that the workforce will stop actively involving
themselves in their assignments (Saks, 2006).
The psychological contract derived from the current theory is a very dominant
model for studying behaviour at work (Cropanzano & Mitchell, 2005). Societal give-and-
take includes an array of exchanges to create commitments (Emerson, 1976). According to
social exchange theory, these exchanges were often considered mutually dependent and
provisional on the activities of other individuals (Cropanzano & Mitchell, 2005, p. 874).
In this regard, social exchange raised the fundamental rules in place keeping the trust in
relationships that flow from it. The exchange, in turn, promoted interdependence between
the parties to achieve desired results.

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In the field of organizational studies, Argyris (1960) credited with the development
of the idea regarding more value-added and psychological comprehension of the shared
interchange (Cullinane & Dundon, 2006; Koskina, 2013; Robinson, 1996). This idea
advanced to promote the development of employees’ subjective understanding with regard
to their perceptions of each other’s obligations (Robinson & Rousseau, 1994).
According to Rousseau, (1989, p. 124), it was the trust that the individual was a liable
to fulfil the exchange agreement (Rousseau, 1995; Rousseau, 1989, 2001, 2011; Rousseau
& Rousseau, 2016). A breach of a psychological contract involves unmet expectations
(Robinson, 1996). Comprehensive psychological contracts showed the viewpoint of
employees’ promises made, and the considerations offered in turn tie the employees and
the organization to an array of corresponding duties (Rousseau & Tijoriwala, 1998). Such
agreement type is generally investigated with respect to transactional and relationship
viewpoint. Transaction bonding discusses the true rights and duties of each party, whereas
a relationship emphasis was completely general and socio-emotional in nature. Both parts
may be linked to a psychological contract to make a composite blend of full and clear
obligations considered as a form of the psychological agreement, especially in situations
where a solid, certified, devout, or rules-oriented system of behaviour is required (Koskina,
2013).
The psychological contract reviewed and restructured during employees’ tenures
within an organization (Robinson & Rousseau, 1994). During the status quo exchange,
each side conducts a sense-making mechanism to translate the exchange in wake of how
the individuals affected themselves (Chaudhry, Wayne, & Schalk, 2009; De Vos, Buyens,
& Schalk, 2003; O'Toole & Prince, 2015; Weick, 1995).

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2.19 Conceptual Model
Figure 2.1 showed the theoretical model designed based on an in-depth analysis of the
available research work and empirical studies on the matter under consideration. The
framework depicted the direct effects of overall CSAs on TP. It was imperative to mention
that the mediating impact of PsyCap and PCF on TP have been investigated. Moreover, the
moderation of SC on the relationship between CSAs and TP examined as described below.

Social Capital

► +

Psychological Capital
► + ► +
Compensation Systems
Teacher’s Performance
Attributes

Psychological Contact
Fulfillment
► + ► +

Control Variables: University Types, Nature of Contract, (BPS,TTS & SPS), Gender

Figure 2.1: Conceptual Model of CSAs and TP, with Mediators and Moderator

2.20 Hypothetical Framework


As shown in Figure 2.2, the theoretical model highlights H1, H2, and H5 as the direct
impacts of CSAs on TP, PsyCap and PCF. H3 and H6 showed the direct effects of PsyCap
and PCF, respectively, on TP. The mediating effects of PsyCap and PCF on TP given by
H4 and H7. The moderating effect of SC on TP given by H8.

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Figure 2.2: Hypothetical Framework of CSAs and TP with Mediators and Moderator

Note: CSAs=Compensation Systems Attributes; TP=Teacher’s Performance;


PsyCap=Psychological Capital; PCF=Psychological Contract Fulfillment; and SC=
Social Capital.
Mediating Path (H4): CSAs PsyCap TP
Mediating Path (H7): CSAs PCF TP
Moderating Path (H8): CSAs SC TP

Overall, the hypotheses of the study may be summarized as follows:


H1: CSAs have a significant positive impact on TP.
H2: CSAs have a significant positive impact on PsyCap.
H3: PsyCap has a significant positive impact on TP.
H4: PsyCap mediates the relationship between CSAs and TP.
H5: CSAs have a significant positive impact on PCF.
H6: PCF has a significant positive impact on TP.
H7: PCF mediates the relationship between CSAs and TP.
H8: SC moderates the relationship between CSAs and TP.

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2.21 Chapter Summary
This chapter explained the theme and underlying concepts of CSAs and potential
aspect so far conceptualised in past studies. The impact of CSAs has been studied using
empirical evidence, past research and proven theories. However, relatively little research
is available in the context of educational institutions.
The literature that discussed CSAs’ impact on TP was found to be the most
extensively evaluated. Though the direction of the relationship between these variables is
not restricted to a single area, our emphasis is on teachers and the intrusion of PsyCap and
PCF. In HEIs, probable PsyCap and PCF agents act as antecedents to TP. So, in this respect,
drawing strength from the empirical evidences, it is believed that, in the presence of CSAs,
PsyCap and PCF in teachers will increase and, in turn, so will TP.
Studies on CSAs in Pakistan are limited, but there are still reasonable grounds to
build hypotheses using the themes and empirical research available in the Pakistan's
context. Therefore, the hypothetical research model designed with elaboration of every
hypothesis. The research model unfolded that CSAs have a significant positive impact on
TP. Moreover, PsyCap and PCF believed to mediate the link between CSAs and TP. The
methodology applied to test the hypotheses is described in next chapter.

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CHAPTER 3
RESEARCH METHODOLOGY

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3 Research Methodology

Research Methodology
Following the relevant research work review and the examination of the theoretical
model relating to the relationship between CSAs and TP given in the preceding part of this
thesis, the research methodology applied to test the hypothesized model is described herein.
Since the research approach and design plays an instrumental role in conducting an
empirical study and testing of hypothesis, having a clear and crisp elaboration of the same
supplemented with relevant literature and justification is very critical to understand the
outcome of the study. Accordingly, aspects relating to the target population and the
application of suitable sampling method and the underlying explanation of the rationale
behind the research methodology and design are discussed herein.

3.1 Basis and Rationalization of the Research Theme


This research study collates the perception of teachers in the organization; their degree
of SC, PsyCap and PCF; and the effect of CSAs on their TP. The research focuses on HEIs
in Pakistan.
The rising apprehensions regarding the idea that the “value for money” and “municipal
accountability” are paving the path towards the philosophy of new public management
(NPM) have also readjusted the way through which universities are to be supervised. It is
mostly envisaged that modifications to management systems, means of observing,
reassuring, and evaluating the standards of teaching are increased as much as possible
worldwide. Therefore, structures of university learning all over the globe are transforming
due to a rising desire to retain the accepted wisdom regarding answerability, worth for
money, and better admittance.
University-level teaching as a vital constituent of a nationwide program for social and
economic development, has attained a renewed significance recently. Given the emergent
knowledge driven economy, states that are unsuccessful in generating an attractive
education milieu will be left behind and may finish forming virtual camps of people who
would be successful in this respect. The information released by the Education (2000)
clarified that in this emergent worldwide economy, insights and wisdom were seen as a
principal means of obtaining prosperity and tangible properties for a state. Consequently,
the standard of creating knowledge in universities is of considerable importance to

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objectives pertaining to nationwide growth. In comparison to industrialized countries,
emerging countries (such as Pakistan) are confronted with severe trials in this field which
call for determination and hard labour to retain or upgrade their place among other nations.
The requirements to develop trade and industry in Pakistan highlights the significance
of investing in HC that can fulfil these labour force requirements in emergent commercial
firms and public firms. This will also facilitate the country to lessen poverty and
joblessness. In order to make sure there is a maintainable stock of quality manpower, a
reliable and high-performing institution of higher learning is needed. This is the primary
reason that the Government of Pakistan is aggressively following its program for
developing its higher education sector.
Agreeing to the HEC’s Yearly Report 2006, the manpower improvement package of
the HEC aimed to improve the productivity of individuals and organizations in the higher
learning sector while promoting important proficiencies that let teachers, scholars, and
pupils continued to transform the nation. There is a specific emphasis placed on
incremental PhD teachers’ provision via numerous inventiveness which has been discussed
in the introduction to this thesis to the augmentation of amenities for prevailing PhD-
degree-holding teachers is also given importance.
A central change that was made recently was the introduction of a comprehensive
compensation system for teachers in HEIs employed under the TTS to inspire and
encourage them to improve in their areas of expertise. This compensation scheme under
TTS offered professors, associate professors, and assistant professors who serve in
governmental HEIs higher monthly pay rates of PKR 292,500, PKR 195,000, and PKR
130,000, respectively, in 2015. According to the HEC, this landmark, among others, has
inspired and encourage university teachers to perform better in their areas of specialization.
As highlighted in the literature review, research on employees, including teachers,
suggests that CSAs are connected to a range of TP dimensions. A recent study has found
that the existence of CSAs in a university is linked to teachers’ PsyCap and PCF. It has
been observed that various positive employees’ work-related outcomes, such as high
performance, occur when employees have sufficient PsyCap and PCF. Thus, understanding
the relationships between CSAs, PsyCap, and PCF is quite significant.

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More notably, an inadequate quantity of research has been carried out in the under-
developed and emerging economies of the world in terms of CSAs for university teachers
concerning work-related outcomes. Hence, the influence of CSAs over teacher productivity
in a university and the mediating effects of PsyCap and PCF have remained unexplored,
and this is the motivation for the current research.

3.2 Research Approach


A well-defined methodology of research was applied to define the plan and procedures
of research used in the present study, covering detailed assumptions and data-collection
methods, its analysis and conclusive interpretation. This process involved several decisions
regarding the research question and the best way to achieve the objectives narrated above.
The research approach was also decided on the basis of the specific type of the matter being
deliberated and the target audience of this research (Creswell, 2013).
Bell and Bryman (2007) claimed that the quantitative research method involves
collecting, presenting, and analysing facts and figures. They further described that it is a
deductive reasoning approach that objectively explores and expresses societal realities. In
view of this definition, the researchers of the current research attempted to construct
consistent and generalizable indicators of important academic concepts by relying on a
blend of notions from the survey of literature and analytical studies.
The research approach used presently is based on the researchers’ comprehension of
the perspective and a desire to explain the relationships of the modified variables and the
feasibility of the argument so that the factual results can be evaluated statistically. Core
objectives of this work are to study the link between CSAs and TP and to determine the
mediation of PsyCap and PCF in this relationship using a quantitative approach.
To make significant deductions, the current study’s methodology includes specific
statistical techniques. The hypotheses have been tested within the context of pre-defined
theories by collecting and interpreting the numerical data given by survey participants to
demonstrate causative links among several constructs. Hence, the current research is set to
study the associations between different variables. A numerical methodology is the most
appropriate for this research as it will reduce the probability of errors occurring while
managing biases.

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3.3 Research Design
After deciding the appropriate approach for carrying out the study, a design suitable
for solving the problem of research was selected to develop tests for the causal effects of
interest (Denzin & Lincoln, 2011). Design of research addresses the issues framed in the
study by selecting a standard research methodology. This includes the type of study
conducted, the sampling technique used, the sample size, and researcher interference. As
is the present study aims to test hypotheses and perform explanatory research, it is
presumed that it will describe the causal links between the observed variables by employing
a non-experimental design – specifically, the survey method – as the measurement
instrument. This helps to generalize the model by using quantitative data to analyse the
trends, opinions, attitudes, and behaviours exhibited by humans from a generalized sample
taken from the population under investigation (Fowler, 2008). This study takes into
consideration previously developed theories that have explained the rationale behind
certain research patterns (Yin, 2003).
The current research is a multifaceted study, thus meeting its objective of gauging the
impact of CSAs in the workplace at a given point in time while minimizing respondents’
losses and reducing the time required to conduct the research, thus making it useful (Leedy
& Ormrod, 2005). An extra benefit is that the survey participants are more likely to be
comfortable than the one-on-one interview answering delicate or private queries, like those
regarding a respondent’s satisfaction with their institution’s fulfilment and their own
fulfilment of promises and degree of their optimism, hope and resilience in job (Rubin &
Babbie, 2005).

3.4 Sampling Procedure


This section explains the unit of analysis, population studied, size of sample, and
sampling techniques applied.

3.4.1 Unit of Analysis


Collis and Hussey (2013) stated that the unit of analysis referred to the subjects of
the sample or elements of the population through which it was possible to answer research
questions (Sekaran, 2003). This might include an individual, dyads, or an entire

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organization (Kervin, 1992). The current research focuses on HEIs, particularly teachers,
based on the theorized connections outlined in the theoretical model.
The behaviour of university teachers affects a university’s ranking. Thus, ensuring
the proper performance of teachers is important. Therefore, the analysis in this study was
carried out on teachers working in HEIs. The perceptions of teachers working in the HEIs
helped the researchers to better understand the relationship between CSAs and TP mediated
by PsyCap and PCF. Hence, the appropriate unit of analysis in the quantitative study of
this research is the full-time teachers working in HEIs in Pakistan.

3.4.2 Target Population


According to Bell and Bryman (2007), a population is the total number of objects
or individuals under investigation. In the current study, the target population consisted of
full-time teachers serving in HEIs of Pakistan that is regulated by the HEC. However,
accessing all these institutions was impractical in view of time and resource limitations.
So, this study deals with what is known as an accessible population: the population that
can be easily accessed by the researcher which is a subgroup of the population (Umsl.edu,
2010).
In this case, the research population (the accessible population) consisted of HEIs
in Pakistan that (according to data downloaded during 2015-16 from the HEC and
respective official websites of HEIs) include around 15,000 university teachers working in
52 (out of a total of 172) universities that are regulated under HEC. A complete list of these
universities in Pakistan is given in Appendix F.

3.4.3 Sample Size


Sekaran (2003) defined a sample as “a subset of the population comprising some
members selected from it.” In plain words, population in entirety would not be considered
as the sample. A sample is, therefore, a sub-set the defined population; most important
thing to note is that it should fairly represent the target population. Post sample analysis,
the researchers can generalise their research findings for the population at large. The
sample chosen for the current research is the university teachers working at the selected
universities in Pakistan. A sample of 800 teachers was picked through random sampling
technique from a population of approximately 15,000 teachers in year 2015-16. The target

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population, level of significance, and confidence interval (CI) are indicated in Table 3.1
(Sekaran, 2003).
Table 3.1: Sample Size Table
Size of Sample Size (n) for Precision (e) of:
Population ±3% ±5% ±7% ±10%
500 A 222 145 83
600 A 240 152 86
700 A 255 158 88
800 A 267 163 89
900 A 277 166 90
1,000 A 286 169 91
2,000 714 333 185 95
3,000 811 353 191 97
4,000 870 364 194 98
5,000 909 370 196 98
6,000 938 375 197 98
7,000 959 378 198 99
8,000 976 381 199 99
9,000 989 383 200 99
10,000 1,000 385 200 99
15,000 1,034 390 201 100
20,000 1,053 392 204 100
25,000 1,064 394 204 100
50,000 1,087 397 204 100
100,000 1,099 398 204 100
>100000 1,111 400 204 100
a = Assumption of the normal population is poor (Yamane, 1967). The entire
population should be sampled.
Adopted from Determining Sample Size, by Israel, University of Florida

3.4.4 Sampling Technique


Technique for sampling is a way in which the researcher chooses which sample will
represent broadly the entire population (Sekaran, 2003). The sample in the present work
was chosen using random sampling; teachers were selected from the list mentioned above
at random while it was ensured that all cadres (i.e., lecturer, assistant professor, associate
professor and professor) were represented fairly. A list of the selected teachers is also
available. Random samples tend to give the best estimates of a population, as they allow
each constituent an equal probability to be included in the study (Brink, 1996). It also
reduces error and bias in the sampling procedure.

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3.5 Measuring Instruments for Constructs
3.5.1 Questionnaire
A questionnaire survey is a systematic procedure for collecting relevant
information needed to fulfil the purpose of research (Burns & Grove, 2005). According to
Saunders et al. (2009), a questionnaire survey more conveniently collect relevant data and
information from a sample. It also reduces personal biases. As the questionnaire ensures
the anonymity of respondents, they are free to express their honest perceptions regarding
the organizational values and their personal emotions towards the organization. The
questionnaire used in the present study sought responses from teachers working in HEIs
residing across all the provinces of Pakistan. All questionnaires were completed either
electronically or in person.
Data was gathered during December 2015 until May 2016 after being reviewed,
pilot tested, modified, and receiving final approval from a supervisory committee. All the
respondents were approached through in person, email and phone, and permission was
obtained from the respective university officials wherever required to proceed with the
survey. All respondents were intimated about the objectives of the research; the majority
of teachers responded positively.

3.5.2 Mode of Questionnaire Development


According to the study context, the demographic information was collected by
asking closed categorical questions, including those pertaining to gender, qualifications,
job designation/ position and job tenure. Only the questions regarding the name of the
faculty/department of the respondent were open-ended, as this couldn’t be easily
categorized.
The main study variables (CSAs, PsyCap, SC, and TP) were measured on a five-
point Likert scale. Possible responses for each item ranged from 5 (“strongly agree”) to 1
(“strongly disagree”). Responses for PCF were also based on a five-point Likert scale, with
responses ranging from 5 (“very high”) to 1 (“very low”).

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3.5.3 Structure of the Questionnaire
The questionnaire had two portions. In the first part, the respondents were
introduced to the study and were given instructions for filling out the questionnaire; this
section also included questions about demographic information. The second portion had
items related to the main study variables. A sample survey questionnaire is provided in
Appendix D.

Demographic/Control Variables:
The survey questionnaire included general information about the respondents, including
the following:
 Department/faculty
 Gender (male, female)
 University type (public, private)
 Nature of employment contract (TTS, SPS, and BPS)
 Designation
 Degree obtained
 Teaching and overall experience

Main Study Instruments:


This part included questions relating to the basic aims of the study.
 CSAs (Williams and Dreher (1992).
 PC (Luthans, 2007)
 PCF (Katou and Budhwar (2012).
 TP (Zhou and Volkwein (2004).
 SC (Chen (2011).

3.5.4 Operational Definitions and Instrumentation of Variables

3.5.4.1 Compensation Systems Attributes


CSAs referred to the system used for offering financial and non-financial
compensation to teachers who performed according to the university’s practices and
procedures. In this study, CSAs were measured using the scale developed by Williams and

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Dreher (1992), which includes five indices, including the form and mix of compensation,
policies for granting pay increase, pay levels and benefits (e.g., ‘I am offered short-term
financial incentives such as performance bonuses). This method was adopted from the
study of benefits coverage in law enforcement agencies (Dreher, Ash, & Bretz, 1988)
These CSA scale items were applied in prior research with certain modifications (e.g.,
Worldatwork, 2010). Thus, the responses to CSAs in the present study were given using a
five-point Likert scale, with the following possible responses: 1 (“strongly disagree”), 2
(“disagree”), 3 (“neutral”), 4 (“agree”), and 5 (“strongly agree”).
Table 3.2: Dimension and Elements of CSAs (Independent Variable)
Dimensions Elements Indicative questions
Pay level Minimum pay Minimum of the stated pay range.

Midpoint pay The midpoint of the stated pay range.

Long term incentives "The presence and absence of long term incentives."

Short term incentives "The presence and absence of long term incentives."

Learning and Career "The opportunities are given to me by my institution for


development learning and career development outside of my current
Forms or a job e.g. sabbaticals, coaching, mentoring, leadership
mix of total training".
compensation Wok-life "My institution is providing me with work/life
programmes such as flexible scheduling,
telecommuting, child-care programs, etc."
Recognition and "My institution is providing me incentives with
Performance recognition via non-financial means e.g. certificates of
recognition, verbal recognition."
"Bonuses" "I am offered a lump sum bonus within the most
recently completed fiscal year."

"Base pay "In my opinion, I am given across-the-board


adjustment" adjustments in the base pay within the most recent
completed fiscal year."

Policies for "Average raise" "The percentage raise granted in the last fiscal year."
granting
increases "Basis of raise" "I agree to the degree to which annual raise is based on
seniority"
"I agree to the degree to which annual raise is based on
seniority"
"I agree to the degree to which annual raise is based on
performance"

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Table 3.2: Dimension and Elements of CSAs (Independent Variable)
Dimensions Elements Indicative questions
Work-life & "Benefits "The percentage of total payroll expenditures devoted to
Benefits percentage" benefits."
"Benefits flexibility" "The degree of flexibility of benefit program."

"Paid days off" "The presence and absence of long term incentives."

"Retirement plan" "The presence and absence of long term incentives."


"Medical coverage" "The amount of major medical expense that would be
covered by faculty’s medical insurance."
"Medical cost" "The monthly amount faculty pay in order to be eligible
for medical insurance"

3.5.4.2 Psychological Capital


Luthans, Avolio, et al. (2007) defined PsyCap as a person’s strong capacities, which can
be categorized as (1) self-efficacy (one’s confidence in completing exciting assignments
by putting in adequate effort), (2) optimism, (3) resiliency (the ability to confront problems
and recover from adversity, and (4) hope (a willingness to perform a task and the selection
of the best path to attain those tasks).
PsyCap was assessed through a 24 questions scale designed by Luthans, Avolio, et al.
(2007). It was divided into four indices: self-efficacy, hope, resilience, and optimism.
Responses to organizational identification were given on a five-point Likert scale; each
statement had the following responses: 1 (“strongly disagree”), 2 (“disagree”), 3
(“neutral”), 4 (“agree”), and 5 (“strongly agree”). Overall PsyCap was derived by
averaging all items.
Table 3.3: Dimension and Elements of PsyCap (Mediating Variable 1)
Dimensions Indicative questions
Self-efficacy “I feel confident analyzing a long-term problem to find a solution.”
“I feel confident in representing my work area in meetings with
management.”
“I feel confident contributing to discussions about the company's strategy.”
“I feel confident helping to set targets/goals in my work area.”
“I feel confident contacting people outside the company (e.g., suppliers,
customers) to discuss problems.”
“I feel confident presenting information to a group of colleagues.”

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Dimensions Indicative questions
“If I should find myself in a jam at work, I could think of many ways to get
out of it.”
“At the present time, I am energetically pursuing my work goals.”

Hope “There are lots of ways around any problem.”


“Right now I see myself as being pretty successful at work.”
“I can think of many ways to reach my current work goals.”
“At this time, I am meeting the work goals that I have set for myself.”
Optimism “When things are uncertain for me at work I usually expect the best.”

“If something can go wrong for me work-wise it will. (R)”


“I always look on the bright side of things regarding my job.”
“I’m optimistic about what will happen to me in the future as it pertains to
work.”
“In this job, things never work out the way I want them to. (R)”
“I approach this job as if "every cloud has a silver lining".”
“When I have a setback at work, I have trouble recovering from it and
moving on. (R)”

“I usually manage difficulties one way or another at work.”


“I can be "on my own" so to speak at work if I have to.”
Resilience
“I usually take stressful things at work in stride.”
“I can get through difficult times at work because I've experienced difficulty
before.”
“I feel I can handle many things at a time at this job.”

3.5.4.3 Psychological Contract Fulfilment


PCF was the perceived accomplishment of employers’ commitments and the
perceived execution of employees’ obligations. Employers’ promises could include those
to provide avenues for learning and growth, avenues for promotion, appreciation, rewards
for productivity, exciting and challenging assignments, dignified conduct, permanent
employment, and an enjoyable and secure office setting (McDonald & Makin, 2000).
Employees’ promises included working hard, upholding organizational goodwill, showing
relational bonding to the firm, developing novel proficiencies and updating existing skills,
flexibility, being polite to customers and peers, being truthful, and coming up with
solutions to problems (Robinson, Kraatz, & Rousseau, 1994).

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In the present study, 20-item scale developed by Katou and Budhwar (2012) was
used for this study. It comprised two dimensions: (1) fulfilment of employer promises and
(2) fulfilment of employee promises. Validity of such scale established in previous studies
(Coyle‐Shapiro & Kessler, 2000; McDonald & Makin, 2000; Robinson, 1996; Robinson
& Morrison, 1995; Robinson & Rousseau, 1994).
Table 3.4: Dimension and Elements of PCF (Mediating Variable 2)
Dimensions Elements Indicative questions
Fulfillment Opportunities for “How would you rate the fulfillment of the
of employer training and employer promises with respect to the
promises development opportunities for training and development in
your organization?”
Opportunities for “How would you rate the opportunities for
promotion promotion?”

"Recognition for “How would you rate the recognition for


innovation for a new innovation for a new idea?”
idea"

"Feedback “How would you rate the feedback on


on performance" performance?”

"Interesting tasks" “How would you rate the interesting tasks?”

"Respectful treatment" “How would you rate the respectful


treatment?”
"Reasonable job “How would you rate the reasonable job
security" security?”
"A pleasant and safe “How would you rate a pleasant and safe
working environment" working environment?”
Fulfillment "Work hard" “How would you rate the fulfillment of the
of Employee employee promises with respect to working
Promises hard in your organization?”
"uphold company “How would you rate the respect to uphold
reputation" company reputation?”
"show loyalty to the “How would you rate showing loyalty to the
organization" organization?”
"develop new skills and “How would you rate developing new skills
update old ones" and updating old ones?”

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Dimensions Elements Indicative questions
"be flexible" “How would you rate to be flexible?”

"be courteous to clients “How would you rate to be courteous to clients


and colleagues" and colleagues?”
"be honest" “How would you rate, to be honest?”

"come up with new “How would you rate to come up with new
ideas" ideas?”

3.5.4.4 Teacher Performance


TP was the perceived performance of the faculty with respect to teaching, research,
and administrative duties. Teaching productivity, a closely related concept, referred to
one's teaching workload output. In the present study, research performance was related to
one’s scholarly productivity and funded research. Finally, administrative performance was
the level representation of the faculty in various committees (see Table 3.5) (Jauch &
Glueck, 1975; Zhou & Volkwein, 2004).
In this study, TP was computed using Jauch and Glueck (1975) 22-item and three-
indices measure (Zhou and Volkwein (2004). The three indices were (1) teaching, (2)
research, and (3) administrative performance.
Table 3.5: Dimension and Elements of TP (Dependent Variable)
Dimensions Elements Indicative questions
Teaching "How would you rate your level of teaching
performance performance with regard to :

► "Total courses taught."

► "Total hours per week teaching classes."

► "Total students’ enrollment."

► "Total classes /sections taught."

► "Total student credit hours."

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Dimensions Elements Indicative questions

► "Capacity to attract and retain students."

► "A reducing the number of classes


rescheduled."
► "Proper course file maintenance as
required by the QEC/concerned
authority."
Research Scholarly "How would you rate your level of research
performance performance performance with regard to :

► "Quantification of presentations,
exhibitions, performances"

► "Articles in refereed published journals"

► "Articles published in no refereed


journals"

► "Published reviews and chapters."

► "Books, monographs, and reports"

Funded research ► "Total number of grants/contract.”

► "Total funds received from all sources.”

Administrative/ Inside service "How would you rate your level of


service administrative/service performance with regard
performance to:
► "Number of administrative committees
served on at this institution."
Outside service ► "Community service relevant to the field
of expertise"
► "Impact of research on society"

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3.5.4.5 Social Capital

SC included one’s social network outside the faculty’s organization and social trust (i.e.,
one’s level of support from within their organization) (see Table 3.6) (Chen, 2011). SC was
measured using a scale developed by Chen (2011) using two indices: social network and
social trust (e.g., ‘I have connections in other universities/institutions’). This scale was also
adopted in another research (Ho et al. (2013)).
Table 3.6: Dimension and Elements of SC (Moderating Variable)
Dimensions Elements Indicative questions
Social Network outside of I have connections in the industry.
network an academician’s
organization I have connections in peer universities/institutions.
I have connections in local research organizations
(public and private).
I have access to contacts in the research journal
publication community.
Social trust Support inside of “When things get tough, my colleagues will give
an organization me professional advice.”
“When things get tough, my colleagues will spend
time to help me.”
“When things get tough, my colleagues are
trustworthy.”
“When things get tough, my colleagues will
encourage me.”
“When things get tough, my organization will
provide help.”
“When things get tough, my boss will provide
help.”
“My colleagues will help me finish my job.”
“When I encounter problems, there will be many
colleagues in my agency that I can ask for a piece
of advice.”

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3.5.5 Ethical Approval to Advance
3.5.5.1 Privacy and Integrity
A transmittal letter was included to highlight the objective of the survey and how it
would benefit HEI and society. Privacy concerns of the participants were expressly
addressed to motivate them to give honest and specific replies. It was also explained that
their participation was entirely voluntary. Almost 800 inquiry forms were distributed
among the teachers selected from 52 universities. Out of the total sample, 628
questionnaires were received, resulting in a response ratio of 76%. Forms with omitted
answers and significant outliers were then excluded, leaving a final count of 608
questionnaires used in the analysis.
3.5.5.2 Procedure
The teachers of the randomly selected universities were contacted through their
departments, phone numbers, or emails. The essential instructions and objectives of the
research were explicated in a covering letter attached to the survey form (Appendix D).
Participants were not paid or credited for their involvement.

3.6 Analytical Methodology


Prior to the analysing data, the survey responses was thoroughly checked from
completeness angle and for outlier values. In extreme cases, data was removed from the
sample. In total, 628 questionnaires were screened to get a final sample of 608 employees
for the analysis.

Before performing the descriptive and statistical analyses, as a first-priority normal


distribution of data was checked through a normality test along with the confirmation of
the reliability and validity of the instruments used in the survey.

Reliability is the internal consistency of the indicators used in the research; it


verifies that the results of the respective constructs are expected to be the same in different
situations. A highly reliable instrument was expected to generate similar results in similar
situations (Creswell, 2013). Cronbach’s alpha used as a reliability measure. A value of
Cronbach’s alpha of greater than 1 was considered acceptable according to various
researchers, and a value close to one indicates the great reliability of an instrument
(Nunnally, Bernstein, & Berge, 1967).

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The normality of the data was checked in view of general rule that the values of
skewness and kurtosis are in acceptable range (i.e. +2 to -2) (Garson, 2009).

Validity identifies the degree by which a construct gauges the desired concept. It
estimates whether the construct is related to the theory. Validation of construct is classified
into two types: convergent and divergent validity. Convergent validity is present when one
can ensure the correlation of items with others in the same way as expected by the theory.
Divergent validity measures the distinction between two variables which are theoretically
unrelated.
To measure construct validity, a factor analysis technique used in various studies
(Escrig‐Tena & Bou‐Llusar, 2005; Sekaran, 2003). Also, principal component analysis and
Varimax rotation used to rationalize data and achieve construct validity. In this research,
those factors were selected which Eigen-values equal to 1 as having suggested by Dimovski
(1994). According to Harrington (2009), loading of factors above .71, .63, .50, .45, and .32
were considered outstanding, extraordinary, good, fair, and poor, respectively. In this
study, a .50 loading criterion chosen. Also, Bartlett’s test of sphericity and Kaiser-Meyer-
Olkin’s (KMO) test was applied to test this study’s validity. The value of KMO should be
above 0.50, whereas the value of Bartlett test should be significant at p<0.05 (Leech,
Barrett, & Morgan, 2005).
Divergent validity is measured through pairwise correlation (Venkatraman, 1989).
According to the established criteria of divergent validity, dimensions should have
correlation below 0.85; values higher than this indicate weak divergent validity
(Harrington, 2009).
After the data was processed, the next step was to run a Statistical Program (SPSS
20.0) to check trends in demographic characteristics and the hypothesized relationships
suggested in this study. A linear regression applied to explore the direct relationships
among the independent variable (CSAs), dependent variable (TP), mediating variables
(PsyCap and PCF), and moderating variable (SC). The mediation was checked using a
PROCESS approach (Preacher & Hayes, 2008) and a Sobel test (1990). Hierarchical
regression analysis based on PROCESS method confirmed moderation (Hayes, 2014).

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CHAPTER 4
DATA ANALYSIS

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4 Results

Data Analysis
As indicated earlier, after eliminating incomplete questionnaires, 608
questionnaires were considered as the usable sample for analysis. SPSS was used to
analyze the responses gathered through the usable questionnaires.

4.1 Data Normality


Prior to the descriptive and statistical analysis of the variables under consideration,
the normal data distribution was verified. The normality of data was the first condition for
the regression analysis. The value of kurtosis and skewness of the constructs of interest
were analyzed to check the normality of the data. This provides an idea of the actual data
distribution and displays it graphically. Skewness refers to the shape of data, whereas
kurtosis provides an insight about the extent to which the data cluster around a particular
value.
A value of zero for skewness and kurtosis is referred to as a perfect normal
distribution of data, but this is not realistic. Data is considered normal if skewness and
kurtosis values fall within the above-mentioned acceptable range of -2 to +2.

Table 4.1: Normality Statistics of All the Variables (N= 608)


Descriptive Statistics
N Skewness Kurtosis
Statistic Statistic Std. Error Statistic Std. Error
CSAs 608 -0.873 0.099 1.946 0.198
PsyCap 608 0.036 0.099 0.807 0.198
PCF 608 -0.345 0.099 0.406 0.198
SC 608 -1.199 0.099 1.741 0.198
TP 608 -0.430 0.099 0.269 0.198
Valid N 608

The values presented above in Table 4.1 confirmed that the data is normal.

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4.2 Reliability Analysis
The researcher had primarily chosen to use instruments which were developed and
validated previously in non-Pakistani experiments. In this, the reliability of the instrument
needs to be checked to confirm the consistency of the chosen instruments in testing
assumptions (Cronbach, 1951). The criterion for analyzing reliability is the value of
Cronbach’s alpha, which is a renowned reliability co-efficient. It is suggested that a value
close to 1 reflects greater internal consistency. Researchers usually reject the alpha values
of less than 0.7 (Nunnally et al., 1967).

Table 4.2: Cronbach’s Alpha Coefficients of All Scales (N=608)


Variables No. of Items Alpha Coefficient (α)
CSAs 17 .730
PsyCap 24 .830
PCF 16 .890
SC 12 .850
TP 18 .800

It had been shown in Table 4.2 that all the reliability coefficients were within
acceptable ranges and close to 1, which meant that all the measures were reliable.

4.3 Validity Analysis


The validity analysis is applied to investigate the extent to which a tool gauges the
desired measured outcome. Unlike reliability, validity does not possess any proper scale;
rather, its dimensions are measured. Validity can be classified into the following main
types.

4.3.1 Content Validity


Content validity means getting confirmation that all the items of the concerned
instrument components measure the construct under examination. It has been observed that
validity of content is identified based on the perceptions of researchers who have advanced
knowledge regarding that instrument. There is no proper methodology used to measure
content validity, so it is usually excluded from research studies.

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4.3.2 Convergent Validity
Convergent validity verifies whether the constructs of the study that are assumed to
be related actually are related. This type of validity is the most widely used type of validity
and is measured through a principal component analysis (also known as a factor analysis
with a varimax rotation method).
For the factor analysis, all 87 of the instrument’s items were loaded into the factor
analysis. The result showed that no item was dropped because all the items were found to
be above the cut-off value for factor loading (0.50). Additionally, all the assumptions of
the factor analysis were fulfilled with KMO values greater than 0.6 and significant values
for Bartlett’s test of sphericity.
Table 4.3: KMO & Bartlett’s Test of Sampling
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .822
Bartlett's Test of Approx. Chi-Square 3346
Sphericity Df 10
Sig. .000

Table 4.3 showed that the value of KMO was 0.822, which was greater than 0.5;
furthermore, Bartlett’s value was significant for the overall instrument, which validated the
sample adequacy assumption for the factor analysis.

4.4 Correlation Analysis


Before moving towards regression analysis, the relationships type of variables of
concern was examined through a correlation analysis. Pearson’s correlation coefficients
(denoted by ‘r’) are used as the criteria for examining the singularity and multi-collinearity
of the variable under investigation. The value of Pearson’s correlation coefficient has been
observed to vary between -1 and +1. A correlation coefficient equal to or greater than 0.80
is considered a threat to the singularity and multi-collinearity of the variable (Tabachnick
& Fidell, 2007). The correlation coefficients of the current study variables displayed in
Table 4.4 below, along with their respective mean and standard deviation values.

130
Table 4.4: Means, Standard Deviations, Reliabilities, and Correlations among
Variables including Control Variables (N=608)
Variables Min Max Means SD CSAs PsyCap TP SC PCF

1. CSAs 1 5 3.49 0.49


2. PsyCap 1 5 3.29 0.49 0.35*
3. TP 1 5 3.45 0.57 0.38* 0.62*
4. SC 1 5 3.25 0.75 0.23* 0.68* 0.62*
5. PCF 1 5 3.44 0.53 0.47* 0.79* 0.79* 0.78 *
0.65*
**. Correlation is significant at the 0.05 level (2-tailed). 0.83*
After analyzing the values provided in Table 4.4, it was confirmed that all correlation
coefficient values fall within acceptable range below the suggested cut-off value of 0.80.
The results depicted that CSAs highlighted a direct correlation with PsyCap (r = .35, p <
.05), PCF (r = .47, p < .05), SC (r = .23, p < .05) and a significant positive correlation with
TP (r = .38, p < .05). PsyCap was significantly and directly correlated with TP (r = .62, p
< .05).

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Table 4.5: Correlation among Variables, including Control Variables
D Q TTE CUE: H G AS ECT UT PsyCap TP SC PCF CSAs

Pearson Correlation 1 .198** .573** .436** .048 -.043 .039 .030 -.006 -.168** -.088* -.143** -.144** -.065

D Sig. (2-tailed) .000 .000 .000 .234 .294 .333 .461 .889 .000 .029 .000 .000 .107

N 608 608 608 608 608 608 608 608 608 608 608 608 608 608

Pearson Correlation .198** 1 .231** .173** -.025 -.012 -.069 .043 -.021 -.013 .073 .078 .028 .061

Q Sig. (2-tailed) .000 .000 .000 .546 .774 .091 .293 .600 .753 .073 .054 .498 .132

N 608 608 608 608 608 608 608 608 608 608 608 608 608 608

Pearson Correlation .573** .231** 1 .722** .007 -.028 .012 .031 .008 -.046 -.025 .004 -.051 -.083*

TTE Sig. (2-tailed) .000 .000 .000 .873 .485 .775 .444 .853 .258 .545 .913 .212 .041

N 608 608 608 608 608 608 608 608 608 608 608 608

Pearson Correlation .436** .173** .722** 1 .015 .046 -.016 -.056 -.039 -.063 -.004 .014 -.031 -.068

CUE: Sig. (2-tailed) .000 .000 .000 .704 .259 .693 .171 .343 .118 .913 .732 .445 .092

N 608 608 608 608 608 608 608 608 608 608 608 608 608 608

Pearson Correlation .048 -.025 .007 .015 1 -.077 .140** .059 .007 -.026 -.053 -.019 -.031 -.014

H Sig. (2-tailed) .234 .546 .873 .704 .059 .001 .143 .863 .519 .189 .637 .449 .723

N 608 608 608 608 608 608 608 608 608 608 608 608 608 608

Pearson Correlation -.043 -.012 -.028 .046 -.077 1 .008 -.075 -.052 .019 -.024 .023 -.006 -.038

G Sig. (2-tailed) .294 .774 .485 .259 .059 .835 .063 .202 .637 .554 .565 .877 .347

N 608 608 608 608 608 608 608 608 608 608 608 608 608 608

Pearson Correlation .039 -.069 .012 -.016 .140** .008 1 .038 -.015 -.009 -.063 -.029 -.011 .055

AS Sig. (2-tailed) .333 .091 .775 .693 .001 .835 .345 .721 .817 .119 .482 .795 .175

N 608 608 608 608 608 608 608 608 608 608 608 608 608 608

Pearson Correlation .030 .043 .031 -.056 .059 -.075 .038 1 .865** -.011 .018 .016 -.029 .017
ECT
Sig. (2-tailed) .461 .293 .444 .171 .143 .063 .345 .000 .781 .650 .689 .482 .667

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D Q TTE CUE: H G AS ECT UT PsyCap TP SC PCF CSAs

N 608 608 608 608 608 608 608 608 608 608 608 608 608 608

Pearson Correlation -.006 -.021 .008 -.039 .007 -.052 -.015 .865** 1 -.024 -.027 .032 -.047 -.042

UT Sig. (2-tailed) .889 .600 .853 .343 .863 .202 .721 .000 .555 .510 .438 .251 .298

N 608 608 608 608 608 608 608 608 608 608 608 608 608 608

Pearson Correlation -.168** -.013 -.046 -.063 -.026 .019 -.009 -.011 -.024 1 .642** .685** .798** .411**

PC Sig. (2-tailed) .000 .753 .258 .118 .519 .637 .817 .781 .555 .000 .000 .000 .000

N 608 608 608 608 608 608 608 608 608 608 608 608 608 608

Pearson Correlation -.088* .073 -.025 -.004 -.053 -.024 -.063 .018 -.027 .642** 1 .649** .826** .504**

TP Sig. (2-tailed) .029 .073 .545 .913 .189 .554 .119 .650 .510 .000 .000 .000 .000

N 608 608 608 608 608 608 608 608 608 608 608 608 608 608

Pearson Correlation -.143** .078 .004 .014 -.019 .023 -.029 .016 .032 .685** .649** 1 .786** .323**

SC Sig. (2-tailed) .000 .054 .913 .732 .637 .565 .482 .689 .438 .000 .000 .000 .000

N 607 607 607 607 607 607 607 607 607 607 607 608 608 607

Pearson Correlation -.144** .028 -.051 -.031 -.031 -.006 -.011 -.029 -.047 .798** .826** .786** 1 .583**

PCF Sig. (2-tailed) .000 .498 .212 .445 .449 .877 .795 .482 .251 .000 .000 .000 .000

N 608 608 608 608 608 608 608 608 608 608 608 608 608 608

Pearson Correlation -.065 .061 -.083* -.068 -.014 -.038 .055 .017 -.042 .411** .504** .323** .583** 1

CSAs Sig. (2-tailed) .107 .132 .041 .092 .723 .347 .175 .667 .298 .000 .000 .000 .000

N 608 608 608 608 608 608 608 608 608 608 608 608 608 608
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
Note: CSAs=Compensation Systems Attributes; TP=Teacher’s Performance; PsyCap=Psychological Capital; PCF=Psychological Contract Fulfillment; and SC= Social Capital; Des=Designation; Qu= Qualification; TTE=
Experience in current university; CUE=Current university experience; H=No. of Hours Worked; G=Gender; AS= Area of Specialization; ECT=Employment Contract Type; UT=University Type

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In Table 4.5, designation, experience, motivation, and area of specialization were
considered as control variables showed insignificant results, except for designation (D),
which was significantly and inversely correlated with TP, PsyCap, SC, and PCF.
Qualification (Q), total teaching experience (TTE), current university experience
(CUE), number of hours worked last week (H), gender (G), area of specialization (AS),
employment contract type (ECT), and university type (UT) were not correlated with
TP, PsyCap, SC, PCF, or CSAs.

4.5 Descriptive Statistics


The study also incorporated analyses of the demographic variables and a tabular
representation of location (mean, median, or mode), variability (SD or variance), as
well as the smallest and largest values of all the variables of concern. The demographic
data covered participants’ sex, experience, qualification, university type, and the nature
of their employment contracts. The distribution of demographic variables had been
provided in Tables 4.6 to 4.10 below. Table 4.11 offered data about location and
variability of all the other variables.

Table 4.6: Respondents Mix by Gender (N= 608)


Gender Frequency Percentage Overall percentage
Male 453 75 75
Female 155 25 100.0

As indicated in Table 4.6, out of 608 respondents, 453 were men and 155 were
women.

Table 4.7: Experience Distribution of the Respondents (N= 608)


Experience F %age Overall percentage
1-5 145 23.8 23.8
6-10 249 41.0 64.8
11-15 138 22.7 87.5
16-20 64 10.5 98.0
21 and above 12 2.0 100

Table 4.7 provided information about respondents’. It could be seen that 23.8%
of respondents possess experience upto 5 years, 41% of respondents had experience of
6-10 years, 22.7% had 11-15 years of experience, 10.5% of respondents had 16-20 years

134
of experience, and 2% have 21 or more years of experience. Majority respondents were
from 6-10 years category.

Table 4.8: Respondents Mix by Qualification (N=608)


Qualification F %age Overall percentage
Bachelors/Master 71 11.7 11.7
degree
M.Phil./MS 343 56.4 68.1
PhD 194 31.9 100.0

Table 4.8 presented the demographic attributes of the respondents in terms of


their education level. Of the respondents, 11.7% had a master’s degree, 56.4% had an
M.Phil. or MS degree and 31.9% had a PhD degree. The largest percentage of
respondents had M.Phil./MS degree level education.

Table 4.9: Respondents Mix by University Type (N=608)


University Type F %age Overall percentage
Public 394 64.8 64.8
Private 214 35.2 100.0

As shown in Table 4.9, 64.8% were serving in the public sector, followed by
35.2% working in private universities.

Table 4.10: Respondents Mix by the Nature of Employment (N=608)


Contract Frequency Percentage Cumulative
percentage
Basic Pay scale 260 42.8 42.8
Tenure Track 142 23.4 66.2
System
Special Pay 206 33.8 100.0
Scale

Table 4.10 showed the mix of respondents in terms of type of their contracts.
While all respondents were teachers, they worked under different employment
agreements as mentioned in the table above. The largest group of respondents (42.8%)
had a BPS compensation system. This was almost double the number of respondents
who worked under a TTS-type compensation system.

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Table 4.11: Descriptive Analysis (N=608)
Variables Min Max Mean S.D Skewness
1. CSAs 1 5 3.49 0.49 -0.873

2. PsyCap 1 5 3.29 0.49 0.036

3. TP 1 5 3.45 0.57 -0.345

4. SC 1 5 3.25 0.75 -1.199

5. PCF 1 5 3.44 0.53 -0.430

Table 4.11 showed the minimum, maximum, mean, and standard deviation
values for the study variables fell within the acceptable range of skewness.

4.6 Hypothesis Testing Through Regression Analysis


A linear regression analysis had been conducted to check the direct relationships
among variables (Stone & Hollenbeck, 1989). In regression analysis results, the R-
squared value explains variations in the dependent variable created by an independent
variable. Moreover, the value determined the degree of relationship significance
between variables. The value of β determined whether the direction of the association
between the two variables was affirmative or negative. The value of adjusted R-squared
(or ∆R²) refers to the fitness of the model. Therefore, the value of adjusted R² had been
checked to interpret the results of the regression analysis while also describing the
change in the researcher's variable as an influence of the predictor variable.

4.6.1 CSAs and TP


The first hypothesis suggested that there was a positive and direct relationship
between CSAs and TP. The linear regression output was presented in the Table-4.12
below.

Table 4.12: Linear Regression Analysis of CSAs and TP (N=608)


β Std. Error T Sig.
(Constant) 1.92 .153 12.593 .000
CSAs .438 .043 10.155 .000
R2 .145
Adj.R2 .144
F 103.33
Note: Significance is set at the 0.05 level.

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The results in Table 4.12 displayed the value of the adjusted R² of 0.145, which
revealed that CSAs explained a low variance of 14.5% in predicting TP. It also
mentioned that 14.5% of the variances predicting TP was explained by this model
(F=103.33, p<.05). CSAs had a significant positive relationship with TP (β=.438,
p=0.00). For Hypothesis 1, the model showed significance at the p<0.05 level;
therefore, the hypothesis was accepted.

4.6.2 CSAs and PsyCap


The second hypothesis suggested the presence of a positive and direct
relationship between CSAs and the PsyCap of teachers. The regression analysis was
applied to examine this relationship. The results were given in Table 4.13 below.

Table 4.13: Linear Regression Analysis of CSAs and PsyCap (N=608)


β Std. Error T Sig.
(Constant) 2.064 .135 15.319 .000
CSA .351 .038 9.913 .000
R2 .122
Adj.R2 .121
F 84.51
Note: Significance is set at the 0.05 level.

The results in Table 4.13 showed that the adjusted R² value is 0.122, which
meant that CSAs explained variance of 12.2% in predicting PsyCap. It also meant that
12.2% of the variances predicting PsyCap was explained by this model (F=84.51,
p<.05). CSAs were positively and significantly linked to PsyCap (β= .351, p=0.00).
Hypothesis 2 was accepted.

4.6.3 PsyCap and TP


The third hypothesis suggested that PsyCap and TP were positively related. The
regression analysis was applied to examine this relationship. The linear regression
results were provided in Table 4.14 below.

Table 4.14: Linear Regression Analysis of PsyCap and TP (N=608)


β Std. Error T Sig.
(Constant) 1.188 .122 9.176 .000
CSAs .710 .037 19.405 .000
R2 .383
Adj.R2 .382
F 376.57
Note: Significance is set at the 0.05 level.

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The result in Table 4.14 revealed that the value of adjusted R² was 0.383,
meaning that PsyCap explained a relatively high variance of 38.3% in predicting TP. It
also signified that 38.3% of the variance predicting TP was explained by this model
(F=376.57, p<.05). PsyCap had a significant direct relationship with TP (β=.710,
p=0.00). Hypothesis 3 was accepted.

4.6.4 CSAs and PCF


The fourth hypothesis predicted that there was a positive relationship between
CSAs and PCF. The regression analysis was applied to examine the above-mentioned
relationship, the results of which were given in Table 4.15 below.

Table 4.15: Linear Regression Analysis of CSAs and PCF (N=608)


β Std. Error T Sig.
(Constant) 1.761 .138 12.761 .000
CSAs .480 .039 12.309 .000
R2 .200
Adj.R2 .199
F 151.50
Note: Significance is set at the 0.05 level.

The results in Table 4.15 displayed an adjusted R² value of 0.200, which


conveyed that CSAs explained a low variance of 20% in predicting the PCF levels of
teachers. It also explained that 20% of the variances predicting PCF were explained by
this model (F=151.50, p<.05). CSAs had a significant direct relationship with PCF
(β=.480, p=0.00). Hypothesis 4, was accepted.

4.6.5 PCF and TP


The fifth hypothesis proposed a direct relationship between PCF and TP. The results of
the linear regression analysis were provided in Table 4.16 below.
Table 4.16: Linear Regression Analysis of PCF and TP (N=608)
β Std. Error T Sig.
(Constant) .544 .093 5.864 .000
PCF .846 .027 31.79 .000

R2 .625
Adj.R2 .625
F 1010.61
Note: Significance is set at the 0.05 level.

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The results in Table 4.16 displayed a value of adjusted R² of 0.625, which meant
that PCF explained a high variance of 62.5% in predicting TP. It also meant that 62.5%
of the variances predicting TP were explained by this model (F=1010.52, p<.05). PCF
was significantly and positively related to TP (β=.846, p=0.00). Hypothesis 5, was
accepted.

4.7 Mediation Analysis


This study employed a mediation analysis developed by Preacher and Hayes
(2008). This technique was composed of an array of linear regression analyses that had
been performed to identify any indirect or mediating relationships between the
independent and dependent variable. Finally, through the Sobel test, the mediation
analysis results were further confirmed for values of significance (Sobel, 1990).

4.7.1 PsyCap between CSAs & TP


For checking the hypothesis that PsyCap mediated the relationship between
CSAs and TP, a mediation analysis through PROCESS was conducted. The results were
given in Table 4.17. The mediation model was shown in Figure 4.1. In the first round
of the mediation model, the regression of CSAs on TP, ignoring the mediator, was
significant (b = .4383, t(606) = 10.15, p <.005). The second round revealed that the
regression of the CSAs on the mediator, PsyCap (or PC), was also significant (b =
.6925, t(606) = 16.5395, p <.005). Round three of the mediation procedure
demonstrated that the mediator, PsyCap (or PC), controlling for CSAs, was also
significant (b = .6348, t(605) = 16.660, p <.005). Round four of the process also showed
that, when controlling for the mediator (PsyCap), CSAs significantly predicted TP (b =
.2158, t(605) = 5.6256, p = .0025). The Sobel test was conducted and revealed
mediation in the model (z = 8.038, p = .000) as seen in table 4.18. PsyCap was found
to partially mediate the relationship between CSAs and TP.

Table 4.17: Mediation of PsyCap between CSAs and TP (N=608)


Coefficients s.e. t Sig(two)
CSAs(IV) to
PsyCap(Mediator) (a
paths) .3505 .0381 9.1933 .000

Direct Effects of
PsyCap(Mediator)
on TP(DV) (b paths) .6348 .0381 16.6600 .000

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Coefficients s.e. t Sig(two)
Total Effect of
CSAs(IV) on TP(DV)
(c path) .4383 .0432 10.1555 .000

Direct Effect of
CSAs(IV) on TP(DV)
(c' path) .2158 .0382 5.6256 .000

Table 4.18: The Sobel Test for Mediation of PsyCap between CSAs and TP
(N=608)
Test Statistic (Z) Std. Error p-value
8.0380 .0277 .000

Psychological
Capital

Compensation Teacher
Systems Attributes Performance

Figure 4.1: Mediation Model of CSAs, PsyCap (MV) & TP

4.7.2 PCF between CSAs and TP


According to hypothesis 7, PCF mediated the relationship between CSAs and
TP. To test this hypothesis, a mediation analysis through PROCESS and Sobel tests
were conducted. The results were given in Table 4.19. The mediation model was shown
in Figure 4.2. In first round of the mediation model, the regression of CSAs on TP,
ignoring the mediator, was significant (b = .4383, t(606) = 10.155, p = <.005). The
second round showed that the regression of CSAs on the mediator, PCF, was also
significant (b = .4805, t(606) = 12.3086, p <.005). Round three of the mediation
procedure demonstrated that the mediator (PCF), controlling for CSAs, was significant
(b = .8293, t(605) = 27.8886, p <.005). Round four of the process showed that, when
controlling for the mediator (PCF), CSAs were not a significant predictor of TP (b =
.0399, t(605) = 1.2487, p =.2123). A Sobel test was conducted and revealed full
mediation in the model (z = 11.2546, p = .000) as shown in Table 4.20. It was found
that PCF fully mediates the relationship between CSAs and TP.

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Table 4.19: Mediation of PCF between CSAs and TP (N=608)
Coefficients s.e. t Sig(two)
CSAs(IV) to
PCF(Mediator) (a
paths) .4805 .0390 12.3086 .000

Direct Effects of
PCF(Mediator) on
TP(DV) (b paths) .8293 .0297 27.8886 .000

Total Effect of
CSAs(IV) on
TP(DV) (c path) .4383 .0432 10.1555 .000

Direct Effect of
CSAs(IV) on
TP(DV) (c' path) .0399 .0319 1.2487 .2123

Table 4.20: The Sobel Test for Mediation of PCF between CSAs and TP (N=608)
Test Statistic (Z) Std. Error p-value
11.2546 .0354 .000

Psychological
Contract Fulfillment

Compensation
Teacher’s
Systems Attributes
Performance

Figure 4.2: Mediation Model of CSAs (IV), PCF (MV) & TP (DV)

4.8 Moderation Analysis


In this study, a moderation analysis developed by Hayes (2012) is used. This
technique composed of an array of linear regression analysis that was performed to
identify the indirect or moderating relationships between the independent and
dependent variables. Finally, through a hierarchical multiple regression analysis, the
results of the moderation analysis were further confirmed.
The moderation model for SC was shown in Figure 4.3. To test the moderation
proposed by hypothesis 8, a hierarchical multiple regression analysis was conducted,

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and output is given in Table 4.21. In step 1, two variables were included: CSAs and
teacher’s SC. These variables significantly explained the variance in TP (R2 = .44, F (1,
605) = 239.105, p < .05). In step 2, the interaction term between CSAs and teacher’s
SC was added to the regression model, which accounted for a significant proportion of
the variance in TP (ΔR2 = .012, ΔF (1, 604) = 12.601, p = .000, b = 1.199, t (604) =
6.561, p < .05). As seen in Tables 4.22 to 4.24, moderation through the PROCESS
technique also supported the results from the hierarchical regression analysis.
Figure 4.4, displayed the analysis of the interaction plot, which showed that CSAs
and teacher’s SC increased, TP decreased marginally. At low CSAs levels, TP was
similar for teachers with low SC. Teachers with low CSAs and teachers who had low
SC had high performance. Hypothesis 8 is supported.

Social Capital

Compensation
Teacher
Systems Attributes
Performance

Figure 4.3: Moderation Model of CSAs (IV), SC (MV) & TP (DV)

Table 4.21: Hierarchical Multiple Regression Analysis of CSAs, SC


and TP (N=608)
Without interactions terms With interactions terms
Model 1 Model 2

Std. Error of .428 .424


the Estimate
R Square .441 .011
Change
F Change 239.105 12.601
Sig. .000 .000

R2 .441 .453
Adj.R2 .440 .450

Note: Significance is set at the 0.05 level.

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Table 4.22: Process Procedure Summary: Moderation Model of SC,
CSAs and TP (N=608)
R2 F df1 df1 Sig(two)
.4529 133.8015 3.0000 604.000 .000

Table 4.23: Process Procedure Summary: Moderation Model of SC,


CSAs and TP (N=608)
Coefficients s.e. t Sig(two)
Constant 3.4666 .0178 194.5381 .000
SC .4429 .0274 16.1427 .000
CSA .2734 .0405 6.7595 .000
int_1 -.1346 .0516 -2.6088 .009

Table 4.22 described the overall model as follows:


Overall model: F(3, 604) = 133.80, p < .001, R2 = .45
In table 4.23, Predictors had been explained as follows:
Predictors:
SC b = .44, t (604) = 16.14, p = .000 – Significant; for every 1 unit
increase in SC, the researcher found a .44 unit increase in TP.
CSAs b = .27, t (604) = 6.75, p = .000 – Significant; for every 1 unit
increase in CSAs, the researcher found a .27 unit increase in TP.
Interaction b = -.13, t (604) = -2.61, p = .009.

Table 4.24: Process Procedure Summary: Conditional Effect of X on Y at Values


of the Moderator(s) (N=608)
SC Effects s.e. T Sig(two) LLCI ULCI
-.7511 .3735 .0569 6.5814 .000 .2628 .4863
.000 .2734 .0405 6.7595 .000 .1940 .3529
7511 .1724 .0551 3.1281 .001 .0642 .2806

Table 4.24 described the slopes for CSAs predicting TP at each level of
SC. The effects represent the slopes of CSAs. The equations from Tables
4.23 and 4.24 were as follows:
Y = constant + .44 (SC) + .27 (CSAs) - .13 (SC*CSAs)
Y = constant + 0 + .27 (CSAs) – 0
For low SC, CSAs b = .37, t (604) = 6.58, p = .000. For low SC, there
was a relationship between CSAs and TP. Every 1-point increase in CSAs
score yields a .37-point increase in TP
For average SC, CSAs b = .27, t (604) = 6.75, p = .000. For average SC,
every 1-point increase in CSAs score yields a .27-point increase in TP.

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For high SC, CSAs b = .17, t (604) = 3.12, p = .000. For high SC, every
1-point increase in CSAs score yields a .17-point increase in TP.

4.5
4
3.5
Teacher performance

3
2.5
2
1.5
1
0.5
0
low SC avg SC high SC

low CSA averg CSA high CSA

Figure 4.4: Interaction Plot

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4.9 Results
Table 4.25: Summary of Results
No. Hypothesis Results

H1 CSAs has a significant positive impact on TP. Accepted


CSAs has a significant positive impact on
H2 PsyCap. Accepted

PsyCap has a significant positive impact on


H3 Accepted
TP.
PsyCap mediates the relationship between
H4 Partially Mediated
CSAs and TP

CSAs have a significant positive impact on


H5 Accepted
PCF.

H6 PCF has a significant positive impact on TP. Accepted

PCF mediates the relationship between CSAs


H7 Fully Mediated
and TP.

SC moderates the relationship between CSAs


H8 Accepted
and TP.

As shown in the above table, the hypothesis had been tested positively without
any rejection which indicates the robustness and reliability of the theoretical framework
conceptualized for this research. This had been discussed in detail with supporting
empirical evidence in the following section.

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CHAPTER 5
DISCUSSION

146
5 Discussion

Discussion
This research was carried out with the intent to fulfil multiple aims. The primary
aim of this study was to analyze the direct effects of CSAs on TP, PsyCap, and PCF
(H1, H2, H3, H5, and H6). The indirect effects of PsyCap, PCF and SC on TP (H4, H7,
and H8) were also analyzed. Moreover, the literature augmentation was done on a
supplementary basis.

5.1 Direct Effect: CSAs on TP, PsyCap, and PCF and PsyCap and
PCF on TP
H1 stated that CSAs had a significant and positive influence on TP. The results
provided in Table 4.12 confirm the hypothesized relationship (β=.438, p=0.00). The
value of adjusted R² (0.145) showed that 14.5% of the variance in TP is explained by
CSAs. These outcomes are in line with the findings of past work. Singh (2004)
suggested that HRM systems were positively related to an individual's performance in
both the service and other sectors (Hassan, 2016; Marwat et al., 2006; Tabiu & Nura,
2013). It was also found that CSAs positively impacted performance of an individual
in the health area (Mmbusa & Kiiru, 2019), banking sector (Arif, 2019; Firmandari,
2014) and telecommunication services (Hoque, Awang, Siddiqui, & Sabiu, 2018). In
another study of the banking sector, it was found that organizational commitment and
leadership are the factors which impacted the performance of the employee more than
compensation (Basalamah, Ramli, Sinring, & Alam, 2019). There was also a study
where salary and indirect compensation had a major effect on workers in the banking
sector of Punjab, Pakistan (Hameed, Ramzan, & Zubair, 2014). But this study excluded
many variables of compensation. The study of Durant et al. (2006) described that CSAs
motivated employees to perform well. It was also known that teachers who were well-
compensated exhibited effective research, teaching, and administrative performance
(Irtwange & Orsaah, 2009).
H2 proposed that CSAs had a significant positive impact on PsyCap. The results
displayed in Table 4.13 provided a direct significant and positive relationship between
CSAs and PsyCap (β=.351, p=0.00). The value of adjusted R² is 0.122, which showed
that about 12.2% of the variance in PsyCap of employees was explained by CSAs.
Intangible inducements, such as training avenues and professional growth, and tangible
rewards (For instance; medical benefits, promotion avenues, and comparative pay and

147
incentives), led employees to feel self-efficacious and optimistic (Dyer et al., 1976;
Luthans et al., 2015; Shin et al., 2012; Stajkovic & Luthans, 2001, 2003; Wu et al.,
2011). CSAs, such as pay increases and recognition, enhanced the PsyCap of teachers
and, resultantly, their teaching productivity (Luthans, 2007; Luthans, Youssef, &
Avolio, 2015). HPWS included compensation, along with other practices which
affected PsyCap of the employee (Chen, Lin, & Wu, 2016).
H3 suggested that PsyCap had a significant positive impact on TP. Table 4.14
depicted a direct significant relationship between PsyCap and TP (β=.710, p=0.00). The
value of adjusted R² is 0.383, which suggested that about 38.3% of the variance in TP
was explained by PsyCap. This endorsed the study of Sun et al. (2012), which
concluded that PsyCap was positively linked with the employee performance in the
service sector of China. Same was found by Peterson, Luthans, Avolio, Walumbwa,
and Zhang (2011) in their study in the service sector of the USA. Another study also
stated that PsyCap enhanced employee's performance through HPWS in banking sector
(Jyoti & Dev, 2016). It was also found in another study conducted in USA based service
and high-tech manufacturing companies that Psycap positively and significantly
affected performance (Luthans, Norman, Avolio, & Avey, 2008b). Self-efficacy
PsyCap was positively linked to employee's performance (Høigaard, Kovac, Øverby,
& Haugen, 2014)
H5 recommended that CSAs had a significant positive impact on PCF. Table 4.15
depicted a positive significant relationship between CSAs and PCF (β=.480, p=0.00).
The value of adjusted R² is 0.200, signified that about 20% of the variance in PCF was
explained by CSAs. It had been noted previously that strategic remuneration policies
were directly connected to psychological contracts (Anvari et al., 2014). Teachers were
not happy with the quantum of compensation received, as the amount was often lower
than they felt it should be. Outcome was consistent with the conclusion of Guest and
Conway (2002) who did a study of senior HR professionals who suggested that HRM
practices enhanced PCF. Moreover, in one of the qualitative study, it was found in UK
based ICT corporation that HRM practices enhanced PCF (Scholarios et al., 2008). It
was investigated in another study that HRM practices were linked to PCF (Westwood,
Sparrow, & Leung, 2001). But in the health sector of Ireland, it was found that
communication was the sole HRM practice that was associated with PCF (Conway &
Monks, 2008). Sturges, Conway, Guest, and Liefooghe (2005) observed that managing
career was the only CSA to be directly linked to PCF.
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H6 suggested that PCF had a significant positive impact on TP. Table 4.16
illustrated a positive significant relationship between PCF and TP (β=.846, p=0.00).
The value of adjusted R² is 0.625, indicated that about 62.5% of the variance in TP was
explained by PCF. Yongjing et al. (2010a) had also described that PCF had a positive
link with employee productivity. The results of the current research were also aligned
with the results of Turnley, Bolino, Lester, and Bloodgood (2003) and Birtch, Chiang,
and Van Esch (2016), who determined that PCF influenced employee's performance.
Moreover, in a recently published work, it was also found that PCF led towards
employee's performance and resultantly business performance (Wellin, 2016).

5.2 Indirect Effects: Mediation and Moderation


H4 proposed that PsyCap served as a mediator between CSAs and TP as
illustrated in Table 4.17, PsyCap partially mediated this relationship. The results were
significant (p<.05). The presence of a partial mediation in the relationship between two
variables had suggested that other variables besides PsyCap might also impact the
relationship between CSAs and TP. The literature supported the idea that CSAs
improved the self-esteem of employees (Greller & Parsons, 1995; Maslow, 1943; Tyler
& Blader, 2002; Thierry, 2001; Carter & Tourangeau, 2012; Kalisch, Lee, & Rochman,
2010; Tourangeau, Cummings, Cranley, Ferron, & Harvey, 2010; Froman, 2010;
Adeniji, 2013). Positive self-esteem enhanced PsyCap, which, in turn, influenced job
performance (Froman, 2010; Nahrgang, Morgeson, & Hofmann, 2011). Results
revealed that PsyCap found to be mediating between spitituality and employee
performance (Fox, Webster, & Casper, 2018). Moreover, PsyCap partially mediated
between HPWS and job satisfaction and commitment (Miao, Zhou, Xie & Wang,
2017). HPWS included compensation, among other practices impacts PsyCap of the
employee and resultantly task performance (Chen et al., 2016). PsyCap found to be
partially and fully mediating the relationship of meaningful work and supportive
organizational climate and more job satisfaction and psychological well-being of
employees in service sector of America (Kim, Kim, Newman, Ferris, & Perrewé, 2019).
H7 suggested that PCF mediates between CSAs and TP. The results presented in
Table 4.19 showed that PCF fully mediated this relationship. The presence of a full
mediation in the relationship between two concerned variables had suggested that PCF
might had a higher influence on the connection between CSAs and TP. This supported
the research of Katou and Budhwar (2012), which showed that the connection between

149
HR systems and performance of an institution mediated by PCF in a European sample.
The study identified that PCF had a positive impact on perceived organizational support
and organization citizenship behavior in five- and four-star hotels' staff members in
Pakistan (Ahmad & Zafar, 2018)
Finally, H8 proposed that SC served as a moderator between CSAs and TP. Based
on the results given in Tables 4.21 and 4.24, H8 was accepted. The significance of
employee compensation systems was examined based on its social role (Adeniji, 2013).
This might led to the enhancement of employee performance. Leana and Pil (2006)
stated that both internal and external SC envisaged TP. Supervisor's support and job
characteristics partially moderated the relationship between PsyCap and creativity of
the employees (Cai, Lysova, Bossink, Khapova, & Wang, 2019).

5.3 Literature augmentation


This research was a valuable addition and bridged literature gap in the context of
HEIs of Pakistan. The study augmented AMO model by Bailey (1993), pro-motivation
HR schemes and High Performance Work System by Appelbaum et al. (2000). The
study also identified black box using PsyCap and SC to better understand CSAs and TP
relationship and supplemented the Social Exchange Theory by Homans (1958) and later
by Blau (1964) and Emerson (1976). Finally, the study potentially enlarged the canvas
of Psychological resource theories like COR theory by Hobfoll (2001).
.

150
CHAPTER 6

CONCLUSIONS

151
6 Conclusion

Conclusion
This part concluded the overall study based on the responses from the faculty of
HEIs of Pakistan. This chapter described the practical implications of the study in detail
to emphasize the overall significance of the study. In the last part of this chapter, a few
of the study’s limitations had been discussed along with suggestions for further
research.

6.1 Summary of Findings


The current study had fulfilled all the objectives mentioned in the introduction;
the findings of the study responds the research problem. The current research had tested
and analyzed the relationship between CSAs and TP as well as the mediation of PsyCap
and PCF using PROCESS, Sobel test, and hierarchical regression analysis techniques.
These techniques were used to investigate the relationship among variables and to
improve the correctness of the results. Direct, mediating and moderating association
among the variables were studied.
Accordingly, this research was based on eight hypotheses. The findings regarding
each hypothesis were summarized as follows:
 The CSAs had a significant positive impact on TP, PsyCap, and PCF.
 PsyCap partially mediated the relationship between CSAs and TP.
 PCF not only had a significant positive impact on TP but also fully mediated
the relationship between CSAs and TP.
 SC moderated the relationship between CSAs and TP.
The current research featured some methodological and theoretical strengths. The
conceptual model had been designed after an extensive literature review. More than
three hundred articles and books were extracted from quality academic journals relating
to CSAs, PsyCap, PCF, educational institutions, and individual performance and were
considered for designing this work. Additionally, there was minimal researcher
interference in this field study. Furthermore, the sample size was large enough to draw
significant conclusions. Moreover, the size of the research sample indicated an adequate
quantum and correctness of the responses.
Finally, the information gathered in this research were quite varied (nature of
employment contract, tenure with the current university, overall teaching experience,
the type of university served, designation, and pay level). Knowing that earlier studied

152
had given inadequate consideration to TP in the presence of associated moderators and
mediators, the current study bridged that gap and, in doing so, enhanced our view about
the nature of higher learning reform issues in Pakistan with reference to teacher’s
intrinsic and extrinsic motivational mechanisms. The current research emphasized the
role of policymakers and higher education authorities in improving such reforms, such
as those which had been in place since 2002 in the higher learning domain.

6.2 Implications of the Study


Theoretical and practical implications can be extracted from the findings of the
current research. This study extended and explored previous work on CSAs, especially
by further examining its impact on PsyCap, PCF, and TP. This study examined the
concept of compensation systems, promoted a theoretical model which integrated CSAs
with TP, and explored the mediation of PsyCap and PCF on CSAs’ impact on TP.
6.2.1 Academic/Theoretical Implications
The research has numerous theoretic contributions. This investigation augments
the present literature on reimbursement by corroborating the AMO Model especially
the ability boosting HR schemes (such as skill enrichment and training) and pro-
motivation HR schemes (including better salary, career growth and open access to
information) in Pakistani higher education perspective. This study has empirically
substantiated mediation of PsyCap and PCF and a moderation of SC between CSAs and
TP in HEIs, which was the maiden influence as it had not been tested previously.
Theoretically, the study helpedin identifying the black-box using PsyCap and SC to
better understand CSAs and TP relationship. In doing so, it extended future researchers’
understanding of how ability and motivation-enhancing CSAs improve TP. This
research could be the base for future researches in adding other mediators or moderators
between these two relationships. Study outcome also supplement the theory of HPWS
(career and development avenues, flexible work schedule and performance bonuses)
and employee performance in HEIs of Pakistan.
It had been observed that HEIs that enforced compensation system can directly
influence the teacher perception, which may lead to an increase in their inventory of
PsyCap and satisfaction with psychological contract and resultantly reducing some of
the HR issues such as how to enhance teacher's performance commonly confronted in
Pakistani HEIs. For instance, as a common feature in many Pakistani HEIs, majority
teachers were highly qualified and facing unattractive pay packages against those

153
working in similar position in other services sector. This could lead to lowering their
Psycap reservoir and PCF and resultantly lowering their motivation towards their
contribution in terms of teaching, research and administration when they compare it
with other avenues to work. Thus, CSAs may depicted that their employer values HC
enough to invest in systems that augment and enhance their psychological resources
and level of fulfillment with the psychological contract among other factors.
Consequently, these can assist in increasing the degree of performance and accelerating
motivation.
This study also enlarged the canvas of psychological resource theories (like COR
theory) by studying the PsyCap and TP researches and CSAs and PsyCap researchers.
Since this theory was referred to describe what motivated an employee obtain, maintain,
and deploy the required means and resources as observed in PsyCap to achieve desired
level of performance output. CSAs help to enhance PsyCap that builds greater
preference “resource caravans” (or in this instance, the core variable of PsyCap).
Concurring with the theory of conservation (Hobfoll, 2001), employees tend to attain
and keep the things that matter the most to them, such as material goods, and social and
personal resources. In a way, job resources, such as management teaching, entrance
into specialist/data nets include organizational affiliations, attending and/or
appearances in seminars beyond an individual field of specialization, shared
experiences with local specialists, and official or casual mentoring schemes. In or
outside an individual’s institution, employees had their own individual personal
resources, such as hopefulness, confidence, and self-worth. Both types of resources help
employees to perform better (Bakker & Demerouti, 2008; Luthans, Norman, et al.,
2008a). In a way, job resources can also add to individuals’ personal resources, such as
hopefulness, confidence, and self-worth. Subsequently, these resources help employees
to perform better (Bakker & Demerouti, 2008; Luthans, Norman, et al., 2008a).
The present study provided some extensions to the emerging theories of PsyCap
and PCF by exploring its link with CSAs and TP in universities of Pakistan. With this
in mind, SE theory, being one of the founding theory for this research, describes how
relationships evolve over period and professionals honor their commitments in
exchange for compensation offered by their employers. This supplements the argument
of commitment as bi-directional thing (Robinson et al., 2004). SE theory was the most
broadly recognized and used academic model based on give-and-take of behaviours,
whether they are physical or non-physical (George & Homans, 1961). The
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psychological contract derived from the current theory is a very dominant model for
studying behaviour at work (Cropanzano & Mitchell, 2005). Societal give-and-take
includes an array of exchanges to create commitments (Emerson, 1976). According to
social exchange theory, these exchanges are often considered mutually dependent and
provisional on the activities of other individuals (Cropanzano & Mitchell, 2005, p. 874).
In this regard, social exchange raises the fundamental rules in place keeping the trust in
relationships that flow from it. The exchange, in turn, promotes interdependence
between the parties to achieve desired results. Apart from the theoretical importance
and appeal of TP, the researcher could not, within the given time and resources, identify
any work highlighting the connection among CSAs, PsyCap, PCF, and TP in HEIs in
Pakistan. The present study offers possibly an expansion to the emerging theories of
PsyCap and PCF by studying its association with CSAs and TP in universities of
Pakistan.
6.2.2 Practical Implications
This research also had the following implications for practising
administrators/managers:
1. Vice chancellors, directors and head of the departments etc. can outline specific,
measurable, achievable, realistic, and time-bound (SMART) goals and regular
performance reviews (especially 360-degree feedback) to improve the PsyCap
of teachers and, resultantly, their performance.
2. Non-monetary incentives schemes, like giving frequent recognition, award
ceremonies, and acknowledgement letters should be carefully utilized when
vice chancellors, directors and heads of the departments etc. wish to use an
acceptable ratio of a compensation mix.
3. Administrators should provide different platforms for learning and career
development to boost their horizontal, vertical, and in-depth skills.
4. Professionals should be cautious when giving pressing and stressful assignment
to those with low PsyCap, as such persons are expected to be more prone to
experience work pressure and stress and to exhibit poor performance as a result.
5. Vice chancellors, directors and heads of the departments etc. could help their
teachers by effectively communicating their priorities, vision, and mission to
help enhance teachers’ identification with their universities. This would foster
a sense of pride in teachers’ work as they will be motivated to work at higher
standards.
155
6. Administration can help teachers through effective leadership, training
interventions, and a supportive organizational climate to develop their PsyCap
and PCF.
7. Vice chancellors, directors and heads of the departments etc. can carefully build
their own psychological capital to enhance their followers’ PsyCap and,
consequently, to improve their performance. This will help the employees fulfil
the expanding needs of their work and deal with having relatively little control
over their jobs.
8. Administrators should conduct regular one-on-one meetings to recognize the
level of teachers’ PsyCap and to assess their PCF levels. This practice will lead
to a productive organizational climate, which will enhance teachers’
performance.
9. Administrators may identify individuals with high or low in PsyCap. Those who
have high PsyCap should be given more challenging and creative tasks to
maintain and boost their performance in line with departmental and
organizational goals. For those who were experiencing low PsyCap, they should
be helped out of that state, for example, by being offered a flexible work
schedule, mentoring, or coaching.

6.3 Limitations of the Study


Every research work had limitations and boundaries that help pave the way for
research in future. The conclusions of this research are to be read in view of some
restrictions. Primarily, the research was dependent on self-reported information, and
these subjective self-reports of performance are exposed to conscious and unconscious
biases. Due to the self-reported information, this research could be skewed because of
biases.
In order to address privacy concerns of the participants, the investigator could not
recognize the participating teachers. Therefore, the current research was performed at
a given time frame. Moreover, the outcomes of the current research do not permit
causation analyses inside the existing framework. Senior teachers and pro-academic
managers were not available or wiling to explain in detail the TP particularly in terms
of service output.

156
6.4 Recommendations of the Study
In terms of empirical recommendations, this study proposed that to enhance the
level of TP, teachers’ levels of PsyCap should be increased to some extent while PCF
should be increased to a great extent in HEIs of Pakistan. Moreover, the impact of
compensation systems matters a lot, and this can be reinforced if the HEC and higher
authorities seriously consider this subject and bring changes in the CSAs and
employment contracts. Such an initiative was expected to safeguard universities from
confronting departmental and university performance issues, such as high rates of poor
individual performance and huge investments in hiring, recruiting and training
employees while enabling the HEC to achieve its Vision 2025. The gradual adaptation
of both theoretical and practical suggestions is expected to lead the universities towards
high rankings in terms of the departmental and individual productivity of teachers.
In practical terms, it was usually considered that a university is valued only if it
has a good reputation and highly competent teachers. In this era, there is need to link
the compensation systems design to improve the self-efficacy, optimism, and resilience
of teachers and to make them perceive systems as helpful to fulfil their own and their
institution’s promises. This study suggested that employees place more importance on
non-financial compensation, including work-life balance opportunities than was
previously thought. Thus, this research was significant to service sector organizations
in Pakistan who seek talented employees to serve in their organizations and to shape
employees’ behaviours. This can be achieved by instilling a sense of improved PsyCap
and perceptions regarding the fulfilment of psychological contracts, highlighting the
significance of various CSAs.
To invest in and develop the PsyCap of teachers may be considered a new aspect
of retaining and performance-enhancing policies (Sun et al., 2012). Also placement of
teachers with high degree of PsyCap in university function that suit their psychological
abilities (for example; giving more time for research work for those who excel at
conducting research) is recommended. Giving teachers' tasks that are not cohesive and
that involves context shifts degrade their performance. For instance, if a teacher is
preparing for or delivering a lecture when an unplanned meeting is called, that teacher’s
performance for that lecture will suffer.
Similar to this, where this research studied inside SC (senior and peer) and outside
SC from the angle of the professional itself, it is expected to be very helpful for research

157
in future to examine the initiatives that employers can introduce to boost the SC of
seniors and peers. SC could be improved through the creation of conducive and
collaborative environments which provide knowledge-sharing opportunities and
encouragement among employees for meeting the demanding needs of their jobs. Web-
defined processes, along with the use of technology and correct tools and training can
enhance the social capital of teachers. They should be given opportunities to learn and
implement success models from peer universities. These plans and programs should be
properly planned and funded in advance in the annual budget. A clear, identifiable, and
detailed progression path should be effectively communicated and applied in HEIs. TP
and PCF data should be collected from other relevant stakeholders as well.
Still, current research is suggested to be performed in other organizations or
sectors and contexts so that similar findings can be generalized. The current research is
conducted from teacher's perspective. However, future research can be conducted from
the perspectives of other workers in HEIs, such as administrative staff and part-time.
The current study was conducted only on full time and regular teachers. Future studies
can focus on part-time faculty as well. The subject matter of this research should also
be examined in other service sector, such as the airline and hotel industries. More
mediating and moderating variables may also be introduced in the developed model.

158
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185
Appendices

186
Appendix A: Typology of Performance Evaluation System Attributes of Different HEIs of Pakistan

Performance
Evaluation
S/N Attributes TTS CIIT UMT PU UHS UVAS FCCU CUST

HEI Information

Type Public Private Public Public Public Private Private

Chartered By Federal Punjab Punjab Punjab Punjab Punjab Federal


Establishment
on 1998 1990 1882 2002 1882 1864 1998

Departments 18 30 73 18 23 22 8

Faculties/Schools 6 7 13 5 3 6 3
Number of
Campuses 8 2 5 2 5 1 1

Students 35,452+ 10,000+ 374,659+ 60,000+ 5,000+ 6347+ 3500+

Faculty Strength 2679+ 600+ 1102+ 4969+ 300+ 220+ 113+


6th in HEIs
& 3rd in
General
category, 2nd in HEIs 9th in HEIs 10th in HEIs
190th 23rd in & 2nd in & 2nd in & 2nd in 20th in W-4
University position in General General Medical Agriculture General category of
Ranking Asia as per category category Sciences category category Universities

187
QA Asia
University
Teaching and
Peer evaluation 67%
1 (Weightage) 35% 52.50% 50% 40% 67% 45% 20%-100%
Courses
Taught/Teaching 
load ( 
Undergraduate
and Graduate
1.1 Programs) 10% 17.5%    17% 
New Courses
Developed/Curri ×
1.2 culum Related 5% × ×   8% 
New Programs
Developed within × × × × ×
1.2.1 Field of Interest  × 
Number of
MCQ’s ×
1.2.2 Developed: × × × ×  × ×
Evaluation by 25%-100%
1.3 Students 10% 10% 23%  ×  
Course Content        
1.3.1 and Organization        
Student        
1.3.2 Contribution        
Learning        
Environment and        
Teaching
1.3.3 Methods
Learning        
13.4 Resources        
Quality of    
1.3.5 Delivery   ×   × × 

188
    
1.3.6 Assessment   ×   × × 
Instructor /       
Teaching   ×     
Assistant
1.3.7 Evaluation
    
13.8 Tutorial   ×   × × 

13.9 Practical/Practice × × × × × × × 
Objective
1.3.10 Comments, if any × × × × × × × ×

1.4 Peer Evaluation 10% × 12% × × × × ×


Evaluation by
Supervisor/
Personality &
Behaviour/Perso ×  33.33%
nal
1.5 Characteristics × 25% 15% 20% 
Communication  
Skills/ English  
Usage in Class/  
Quality of × ×   ×
1.5.1 Advising × 5% ×
Interpersonal  
Skills/ × ×   ×
Participation in
1.5.2 Workshop × 5% 5%
Planning & 
Organizing Skills/  25%-100%
Number of × ×  ×
Students under
1.5.3 Supervision × 5% 5%

189
 
1.5.4 Judgment × 5% × ×  5%  25%-100%
Reliability/ Live
Observation of
Teaching/ Exams/ × × 25%-100%
Achievement of
Teaching goals
1.5.5 Stated Last Year × 5%  5% 
Any Other 
Observations/Sug 
gestions/ 
Strengths in 
Teaching 
(Behavioral × × × × ×  25%-100%
Terms)/ Changes
Needed in
Teaching
(Behavioral
Terms)/Other
Teaching
1.5.6 Activities ×
Self-Evaluation of 
1.5.7 Teaching × × × × × × 
25%-100%
1.5.8 Course Material × × × × × × ×
Research
2 Performance 50% 39% 50% 45% 33% 37% 20%-100% 33%
Research
2.1 Publications 25% 20% 30% 20%  13%  25%-100%
Research Papers     
Published in     
Foreign Journals     
of International     
2.1.1 Repute/Internatio  × ×

190
nal Publication
with Impact
Factor
Research Papers     
Published in     
Pakistani Journal     
of     
International/Nati     
onal Repute/
National
Publications in
HEC recognized
2.1.2 Journals  × ×
National 
Publications in 
Journals not
recognized by
2.1.3 HEC × × × × × × ×
Patent / Crop
Variety × × × × × × ×
2.1.3 (Approved) 

2.1.4 Book Published × × ×   × × ×


Book Authored or  
Edited  × × ×  × × ×
2.1.4.1 Internationally
Book Authored or  
2.1.4.2 Edited Locally  × × ×  × × ×
International 
Proceedings /  × × × × × ×
Conference
2.1.5 Papers ×

191
Student's 
Supervision 
/Research or 
Project
2.2 Supervision 15% 12.5% 20% 10% × 16% ×
M.Phil. and
2.2.1 PhD’s Produced × × × × × × × ×

2.2.1.1 PhD’s Produced  ×  × × × × ×

PhD Thesis under


Review of
2.2.1.2 Foreign  ×  × × × × ×
PhD’s under 
2.2.1.3 Supervision  × × × × × × ×

2.2.1.4 M.Phil. Produced  × × × × × × ×
M.Phil. Thesis 
2.2.1.5 under Review  × × × × × × ×
M.Phil. under 
2.2.1.6 Supervision  × × × × × × ×
BA / BS students ×
2.2.2 Supervised × ×  × × × ×
Research ×
2.3 Funding/projects 5% 6.5% × 5% × × ×
for Less than 01 
Million as 
Principal 
Investigator other  × × × × × × ×
than the Research
2.3.1 Grant given by

192
the Parent
University
for more than 01 
Million as 
Principal 
Investigator other  × × × × × × ×
than the Research
Grant given by
the Parent
2.3.2 University
RESEARCH
PROJECTS × × × × ×
UNDERTAKEN
2.3.3 (Current year)  × ×
Seminar /
Conferences / × × × ×
2.4 Workshops 10% × 8% ×
Seminar /
Conferences / ×
Workshops at × × × × × ×
Department and
2.4.1 Institutional level ×
Conducted at  
2.4.1.1 University Level × × ×  × × ×
Conducted at 
2.4.1.2 Deptt. Level × × ×  × × × ×
Participated and 
Presented Papers 
at × × ×  × × × ×
University/Depart
2.4.1.3 mental level
Participation at 
University/Depart × × ×  × × × ×
2.4.1.4 mental Level

193
Seminar /
Conferences /
Workshops at × × × × × × ×
National and
International
2.4.2 Level ×
Attended and  
Presented Papers × × ×  × × ×
at International
2.4.2.1 Level
Attended at   
International × × × 
2.4.2.2 Level × ×
Attended at   
2.4.2.3 National Level × × ×  × ×
Conducted at  
2.4.2.4 National Level × × × × × ×
Conducted at  
International × × ×
2.4.2.5 Level × × ×
Award / ×
2.4 Honours 5% × × × × × ×
National Awards 
(Civil / President) 
Izaz-e-Kamal,  × × × × × × ×
Izaz-e-Fazilat,
2.4.1 Sitara-i-Imtiaz)
International  × ×
2.4.2 Awards  × × × × ×
HEC Best 
2.4.3 Teacher Award  × × × × × × ×
Reviewed Self- 
Evaluation of  ×
2.5 Research and × × × × × ×

194
Scholarly
Activity
Asked Others 
about the 
Quality of × × × × × ×  ×
Scholarly Work
over this Review
2.6 Period
Verified 
Conference × × × × × ×  ×
2.7 Attendance
Assessed 
Achievement of × × × × × ×  ×
Research Goals
2.8 stated Last Year
Strengths in 
Research and  ×
Scholarly Activity × × × × × × 
(Behavioural
2.9 Terms)
Changes Needed 
in Research and 
Scholarly Activity × × × × × ×  ×
(Behavioural
2.10 Terms)
Degree Programs 
and the Institution 
in which a × × × × × ×  ×
Member is
2.11 currently Enrolled
Administrative/S
ervice ×
3 Performance 15% 9% 0% 15% × 18% 20%-100%
3.1 Dean of Faculty 

195
× × × × × × ×
Chairman of
Department /
Registrar / Dir.
Advance Studies
and Research /
Dir. Academic /
Dir. Institute / × × ×
Treasurer /
Provost / Chief
Editor of
Research Journal
/ Chief Proctor /
Controller of
3.2 Examinations   × × ×
Member on
Syndicate / × × ×
Selection Board /
3.3 F & PC  × × × ×
Additional
Registrar /
Additional Dir.
Advance Studies
and Research
/Additional Dir.
Academic /
Additional × × ×
Treasurer /
Additional
Provost /
Associate Editor
of Research
Journal
3.4 /Additional  × × × ×

196
Controller of
Examinations

Proctor, Admn.
Officer, Sr. × × × × × × ×
Warden, Warden,
3.5 Asstt. Warden 
Membership of
3.6 committees, etc. × × × × × × × ×
Development
Activity
(Participates in
National Building
Activities Like × × × × × × ×
Social Welfare
Economic
Development,
Community
3.7 Uplift, etc.) 4%
Utilization of
Facilities (Utilizes
available
Building,
Equipment, × × × × × × ×
Books etc. to the
optimum;
develops and
utilizes the staff
3.8 potential) 3%
Disposal of
Administrative
Work (Disposal
of administrative × × × × × × ×
3.9 work with 3%

197
Efficiency and
Accuracy)
Extra-Curricular
Activities
(Participates in
and Supervises × × × × × ×
Students,
Activities,
Dramas, Debates,
3.10 Sports, etc.) 8% ×
Reviewed Self-
Evaluation of × × × × × ×
Service in Service
3.11 to the Department × ×
Reviewed 
Committee 
Assignments in × × × × × ×  ×
Service to the
3.12 Department
Assessed Quality  ×
of Participation in × × × × × × 
Service to
3.13 Department
Assessed Balance  ×
of Internal and × × × × × × 
3.14 External Service
Assessed  ×
Achievement of × × × × × × 
Goals Established
3.15 Last Year
Assessed  ×
Involvement with × × × × × × 
Students Outside
3.16 the Classroom

198
Strengths in  ×
Service × × × × × × 
(Behavioral
3.17 Terms)
Changes needed ×
in Service
(Behavioral
3.18 Terms) × × × × × × 

Total/Average 100% 100% 100% 100% 100% 100% 100% 100%


Note: TTS-Tenure track system CIIT-COMSATS Institute of Information Technology, Islamabad UMT-University of Management and Technology, Lahore PU-University of
the Punjab, Lahore UHS-University of Health Sciences, UVAS-University of Veterinary and Animal Sciences, Lahore FCCU-Forman Christian College University, Lahore,
CUST- Capital University of Science and Technology, Islamabad. In the columns, "Yes" indicates that the study found the existence of concerned faculty performance
appraisal indicator but itsweight is not given, and No" indicates non-existence of that indicator in the concerned HEIs.

199
Appendix B: Typology of Payment System in Different HEIs of Pakistan

Compensation University of Management


Systems COMSATS Institute of Information Technology, University of the and Technology,
Sr. Attributes Islamabad Punjab, Lahore Lahore
1 Basic Pay

Lecturer -BPS: 38,350-2870-


95750
Assistant Professor -
BPS:59,210-3050-1,20,210
Associate Professor -
BPS:69,090-4510-1,32,230
Basic Pay Scale (BPS) (Rs. Professor -BPS:76,720-5000-
1.1 Per month) N/A 146720 N/A
Lecturer -SPS:40,000-100,000
Lecturer: 11,000-2250-67250 Assistant Professor -
Assistant Professor: 23500-3350- SPS:70,000-150,000
1,07,250 Associate Professor -
Associate Professor: 38,500-4450- SPS:150,000-300,000
1,27,500 Professor -SPS:200,000-
Special Pay Scale (SPS) in Professor-SPS: 56,000-5550- 450,000
1.2 (Rs. Per month) 167000 N/A
Tenure Track is not applicable
Lecturer -N/A Lecturer -N/A in HEIs of Pakistan. TTS based
Assistant Professor -130,000- Assistant Professor -130,000- teachers are given lump-sum
Tenure Track System 8937-264055 8937-264055 pay inclusive of various
(TTS) Pay Scales (Rs. Per Associate Professor -195,000- Associate Professor -195,000- allowances. Other Benefits are
1.3 month) 11,375-365,625 11,375-365,625 admissible.

200
Professor -292,000-14,300- Professor -292,000-14,300-
507,000 507,000
2 Monthly Allowances
Lecturer -6455
Assistant Professor-9840
House Rent Allowance (% of Associate Professor-11673
2.1 basic pay) 45% Professor-12940 45%
Utilities Allowance (% of
2.2 basic pay) Nil 10% 2016 freeze in 2017 10%
Compensatory Allowance
2.3 (% of basic pay) 40% Nil 20%
PhD Allowance (Rs. per
2.4 month) 10,000 10,000 Nil
Orderly Allowance (Rs.Per
2.5 month) 12,000 Nil Nil
Adhoc Allowance (% of 2010 till 2016 freeze 10% in
2.6 basic pay) 10%-15% 2017 available Nil

Special Allowance (In case Dean/principal/ director/


2.7 of HOD or any other ) 1 Increment/Honorarium chairman 5,000 per month 10%
3 Incentives/Variable Pay
For Publications in Local
3.1.1 Journals approved by HEC Nil 25,000 10,000
For Publications in foreign
3.1.2 Journals approved by HEC 15,000 50,000 25,000
Incentives for Non-Ph.D.
3.3 Teachers/Officers Full pay under specific program 5,000 Nil
Incentives/Facilities
provided to a Ph.D.
3.4 Supervisor 50,000 100,000 150,000

201
Incentives/Facilities
provided to an M.Phil.
3.5 Supervisor 10,000 7500 10,000
3.6 Book Publishing 15,000 50,000 25,000
National Awards for Best
3.7 Teachers Available Available Available
4 Pay Increases
4.1 Merit Pay Minimum Increase 1 1Gratuity one basic pay 1
4.2 Advance Increments
Based on PhD degree while Inclusive in Package
4.2.1 Joining University 1-4 2-3
Based on M.Phil./MS/LLM Inclusive in Package
Foreign Degree while
4.2.2 Joining University 1-2 Nil
Advance Increments in Addition to Normal
4.3 Increments
Based on PhD Degree for In-
4.3.1 Service Teachers with Leave PhD Allowance 2-3 2
Based on PhD degree for In-
Service teachers without
4.3.2 Leave PhD Allowance 2-3 4
5 Medical
Self, spouse, parents & dependent Self, spouse, parents & Self, spouse & dependent
children (unmarried children up to dependent children (unmarried children (unmarried children up
the age of 18 years) children up to the age of male to the age of 25 years)
5.1 Scope 18 female 25 years)
Outpatient (Maximum
Amount of Lecturer & Assistant Professor –
Reimbursement)/Medical 2,000 Max. On actual basis approved
Allowance in Lieu of OPD Associate Professor -2,500 by the concerned hospital on
5.2 ($ Per month) Professor -3,000 the payroll of PU panel 2,000

202
Lecturer & Assistant Professor-
50,000 Max. On actual basis approved
Inpatient (Maximum Amount Associate Professor & Professor- by the concerned hospital on
5.3 of Reimbursement) 60,000 the payroll of PU panel 100% of Actual
5.4 Hospitalization
Lecturer & Assistant Professor –
7,000
5.4. Associate Professor & Professor
1 Room Rent Per Day 8500 Health centre facility 7,000
Maternity (Admissible Twice in the Full
Service, Entitlement after 2 years of
5.4.2 Service)

Lecturer & Assistant Professor –


65,000
5.4. Associate Professor & Professor -
2.1 Normal (Amount Per Case) 80,000 Health centre facility 60,000
Lecturer & Assistant Professor –
65,000
5.4. Caesarean ( Amount Per Associate Professor & Professor
2.2 Case ) 80,000 Health centre facility 60,000
Lecturer & Assistant Professor –
105,000
Associate Professor & Professor -
Hospitalization Limit Per 135,000
5.4.3 Insured Per Ailment. N/A N/A
Lifetime Maximum Amount
5.5 Reimbursable (General) No limit No limit No limit

203
Lifetime Maximum Amount
of Reimbursable Excluded
5.6 (Psychiatric) No limit No limit
Eyeglasses, Dental Braces,
Cosmetic Surgery, Vitamins Excluded
5.7 & Tonics Excluded Excluded
6 Leaves
Sick Leaves* (Per Calendar
6.1 Year) 12 30 No limit
Encashable up to (Number
6.1.1 of Days) Nil Nil Nil
Maximum Accumulation
6.1.2 (Number of Days) Nil Nil Nil
Casual Leaves* (Number of
6.2 Calendar Days) 10 25 8
Encashable upto ( Number of
6.2.1 Days) Nil Nil Nil
Maximum Accumulation
6.2.2 (Number of Days) Nil Nil Nil
Special Casual leave
6.2.3 (Number of Days) Available Nil Nil
Annual Leaves (Number of
6.3 Days)/Earned 24 30 24
Encashable up to ( Number
6.3.1 of Days) 90 Nil 90
Maximum Accumulation (
6.3.2 Number of Days ) 90 No limit No limit
Maternity Leaves (Number
6.4 of Days ) 90 90 90
Encashable upto (Number of
6.4.1 Days) Nil Nil Nil

204
Maximum Accumulation (
6.4.2 Number of Days) Nil Nil Nil
6.5 For Male Nil 7 days Nil
General Purpose Sabbatical Full semester after 3 years' service Full semester after 3 years' Not applicable
6.6 (Number of Days) for TTS service for TTS
Special Disability Leave for
Injury Accidentally Incurred It adjusted in medical leave.
6.7 (Number of Days) Available It adjusted in medical leave.
Study Leave (Number of It adjusted in medical leave.
6.8 Years) 2-4 2-5
Privilege Leave (Number of Nil
6.9 Days) Available 30
Leave Preparatory to
Retirement (Number of Nil
6.10 Days) Nil 365
Special Leave for a Female
Teacher on the Death of her Max. 130
6.11 Husband (Number of Days) Max. 130 Max. 130 don’t allow normally
Encashment of Refused
6.12 Leave (Number of Days) Nil 365 with full pay Nil
Leave on Half Average Pay
6.15 (Number of Days) or Nil Nil Nil

Furlough (Furlough may not


be granted until the officer
applying for it has completed
4 years' active service. Not Nil
more than two years'
furlough may be granted at
one time.) Second time 3 One-ninth of an officer's active
6.16 years Nil service

205
Extra-Ordinary Without Pay Max. 5 years (Discretion of
6.17 (Number of Months) 6-12 HOD) Nil

Subsidiary(In the case of


furlough or leave on medical
certificate took out of
Pakistan subsidiary leave on Nil
any one occasion of taking
6.18 such subsidiary leave ) Available Max. 10 days

Persons proceeding abroad


on Scholarships granted by
the
Provincial/Federal/Foreign
Government/Agency
(Employees who have
neither any furlough or study Nil
leave nor any privilege leave
at their credit would be
granted only extraordinary
6.19 leave without pay) Not Available Without pay

6.20 Study Tour Allowed Allowed Allowed


7 Advances to Faculty
7.1 House Building Up to 80% of GP & CP Nil Nil
7.2 Mark-up on Loan 0% Nil Nil
Recovery (number of
7.3 monthly instalments) No limit Nil Nil
8 University provided accommodation

8.1 At university premises Available at some campuses Available Limited Availability

206
Outside university (monthly 20,000-30,000
8.2 rental) 45% house rent allowance Requisition
9 General Purpose Loan
Eligibility: a) length of 1
9.1 service (in years) 1 Nil
: b) No Nil
9.2 outstanding loan or advance Nil Nil
Maximum loan available (no.
9.3 of gross salaries) Max. 6 Nil 2
9.4 Mark-up rate Nil Nil Nil
Repayment period (no. of
9.5 monthly instalments) 12 Nil 12
10 Terminal benefits
Contributory Provident fund
: contributory/non-
10.1 contributory Contributory Nil Contributory
University contribution (%
10.2 of basic salary) 10% Nil 10%
General Provident Fund/
10.3 Benevolent Fund (BF) Contributory Contributory Nil
University teacher's
contribution (% of basic
salary) used for marriage, N/A
funeral grant and educational
10.4 benefits 2% N/A
One choice is given either gratuity 65% of the basic pay + medical Nil
10.5 Gratuity and Pension or pension at retirement
Teacher's contribution (% of
10.6 basic salary) N/A Up to 2% each N/A

207
Additional pension (For BPS
associate professor and Nil
10.7 above) Nil Allowed
11 Group Life Insurance
Insurance Cover for death &
11.1 disability Nil Out of BF Available
Lecturer & Assistant Professor –
500,000
Insurance Cover for Dread Associate Professor & Professor –
11.2 Disease 600,000 Available Available
Notice period in months (or
equivalent gross salary per 3
12 month) 3 3
13 Caring for dependents
34,00,000 (Currently not
available)/Lump sum payment
equal to 180 days. All other
benefits are same as available
toin-service teachers like
Pension/Salary,
Accommodation, Health,
General Provident Fund, and
Financial Assistance to the Nomination of an officer as
family of teachers who dies counsel and Monthly
13.1 while in service N/A Benevolent grant. N/A
13.1.
1 Education Available Up to 3 children out of BF Available
13.1. Appointment of 1 child or
2 Employment Appointment of 1 child or widow widow in BS1-BS11 Not available
14 Travel, Subsistence and Hospitality

208
Travelling on Initial
14.1 Appointment Nil Nil Nil
Travel by Road - Private Allowed
14.2 Vehicles Allowed Allowed
14.2 Standard Mileage Rate (Rs.
.1 per km) 12 10 Actual
14.2 Hired Vehicles (journey in
.2 excess of 150 miles - actual) Allowed Allowed Allowed
14.2
.3 Taxis (actual fare) Allowed Not actual- rate 10 per Km Actual

14.3 Travel by Rail First class Air Condition Class First class
14.4 Travel by Air
14.4.
1 Domestic Travel Economy Class As per choice Economy Class
14.4
.2 International Travel Economy Class As per choice Economy Class

Accommodation Allowance Lecturer & Assistant Professor - Lecturer 2000


(journey time exceeds 12 2600 + 3200= 5800 Assistant Professor & Associate
hours)/ Daily Allowance as Associate Professor & Professor Professor- 2500
14.5 Provincial Govt. 3300+3200=6500 Professor- 2800 2000-3000

Subsistence Allowance – Overnight


Stay/Special Daily Allowance as
14.6 Punjab Gov.
Lecturer & Assistant Professor - Lecturer -2500
3900 + 3200=7100 Assistant Professor & Associate
Associate Professor & Professor - Professor- 3300
14.7 Hotel Accommodation 4800 + 3200=8000 Professor- 4000 As per actual

209
Accommodation Daily Accommodation Daily
Accommodation Daily Allowance Allowance is inclusive of Meal Allowance is inclusive of Meal
Meal Allowance is inclusive of Meal Allowance Allowance Allowance
15 Performance and Recognition
ISO 9001, HEC and program
accreditation councils ( NCAEC, Regular feedback and best
NBEAC, PEC, other organizations Performance feedback at teacher and best researcher
including institute provides a regular intervals and awards and recognition are
15.1 Performance performance feedback system recognition awards are given. given.
Letter of appreciation and other
incentives are on an annual basis
15.2 Recognition as per policy
Development and Career
16 Opportunities
16.1 Learning opportunities
16.1.
1 Tuition Assistance
16.1. For local and foreign PhD Fee waive/reimbursed up to 3 Fee waive/reimbursed up to 3 Fee waive/reimbursed up to 3
1.1 scholarships years years years

16.1. For local and foreign Fee waive/reimbursed up to 2 Fee waive/reimbursed up to 2 Fee waive/reimbursed up to 2
1.2 MPhil/MS scholarships years years years

For Fresh lecturers 1-4 months free HRD department gives training Limited training is given for
16.1. New technology training. HOD training programs to fresh teachers and senior providing institutional
2 training/teacher training. (10 days for free in Pakistan) teachers as required knowledge.
Attendance at outside
16.1. seminars, conferences, As per University policy
3 virtual education, etc. As per University policy As per University policy

210
Human Resource Development
initiatives are taken at regular Stress Management and
16.1. Self-development tools and intervals in some of the Emotional Intelligence based
4 techniques. Nil departments. seminars are arranged.
On-the-job learning;
16.1. rotational assignments at a
5 progressively higher level. As per University policy As per University policy As per University policy
Sabbaticals with the express
purpose of acquiring specific In house PhD full pay leave up to
16.1. skills, knowledge, or course work for nearly one and a Salary equal to ½ of his pay and
6 experience. half year. Service period: 3 years also study allowance As per University policy
16.2 Coaching/Mentoring

16.2. HRD is in the university is Partially Available through time


1 Leadership training. Through multiple task assignments playing its due role to time workshop and seminars
Access to Access is provided within and
experts/information networks Cross-discipline workshops and outside institution through a Cross-discipline avenues are
16.2. outside of one's area of conference are provided but with number of forums like research given but depend upon funding
2 expertise. limited scope groups. availability
Formal or informal The formal role is played by
mentoring programs in or Informal mentoring programs are deans /chairman but informally The mentor-mentee relationship
16.2. outside one's own available more as compared to by senior faculty members as is found to be more at an
3 organization. formal required informal level.
16.3 Advancement Opportunities
16.3. Overseas assignments (Per
1 trainee). Up to Rs.one million As per University policy As per University policy

16.3. Job advancement/promotion and


2 Career ladders and pathways.

211
Qualification: MPhil/MS or
Qualification: MPhil/MS or equivalent degree i.e. 18 years,
16.3. equivalent degree i.e. 18 years, or Same as per HEC both under or Masters from a foreign
2.1 Lecturers Masters from a foreign University. TTS and BPS. University.

Same as per HEC under TTS.


Qualification: PhD degree but Under BPS, relaxation in a
relaxation is given till January 1, number of papers and Qualification: PhD degree but
2018, under SPS and BPS experience is diverse based on relaxation is given till January
compensation system. Under TTS, departments and centres as per 1, 2018, under SPS and BPS
16.3. Assistant Professor a PhD degree is already in practice university compensations systems. TTS is
2.2 by HEC. statutes/Management. not applicable here.
Under TTS,
Qualification: PhD Degree/
Terminal Qualification in the
relevant field (from an HEC
recognized Institution).
Experience: 6-years Post-PhD or
minimum of 4-years of post-PhD
experience along with at least 6
years of experience prior to the
PhD. (The experience to be Same as per HEC under TTS.
counted is to be of Under BPS, relaxation in a
teaching/research in a recognized number of papers and
University or a post-graduate experience is diverse based on
Institution or professional departments and centres as per
experience in the relevant field in a university TTS is not applicable here but
16.3. National or International statutes/Management. HEC requirements criteria are
2.3 Associate Professor Organization) followed to a greater extent.

212
Publications: 10 research
publications (with at least 4
publications in the past 5 years) in
Journals recognized for the
purpose of appointment on Tenure
Track by the HEC.
Under TTS:
Qualification: PhD Degree/
Terminal Qualification in the
relevant field (from an HEC
recognized Institution).
Experience: 10-15 years Post-PhD
or minimum of 4-years of post-
PhD experience along with at least
6 years of experience prior to the
PhD. (The experience to be
counted is to be of
teaching/research in a recognized
University or a post-graduate
Institution or professional
experience in the relevant field in a
National or International
Organization)
Publications: 15 research Same as per HEC under TTS.
publications (with at least 4 Under BPS, relaxation in a
publications in the past 5 years) in number of papers and TTS is not applicable here but
Journals recognized for the experience is diverse based on HEC requirements criteria are
purpose of appointment on Tenure departments and centres as per followed to a greater extent.
16.2. Track by the HEC. university Market forces are an important
3.4 Professor Under SPS: statutes/Management. consideration.

213
Relaxation according to statutes of
the institute in experience and
papers.
It needs to be taken care of
more in future. Some of the
departments and centres are not
16.3. Not adequate at some of the having even a minimum level Inadequate planning
3 Succession planning. campuses. of succession planning.
*indicates that sick leaves are treated as a causal leave in Punjab University.

214
Appendix C: Table of Summary of Key Literature Review - In General
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
It is primary research that
Decramer, Smolders,
Services collected data through a survey This study enforces how HRM systems
1 and Vanderstraeten Belgium
(Education) from 589 employees of a lead to desired organizational outcomes.
(2013)
Flemish University
Monetary component of pay programs is
Gerhart, Milkovich, only one part of total compensation for
2 NA NA Working paper
& Murray, 1992 achieving desired attitudes and
behaviours.
The results suggest the supervisor plays a
Greller & Parsons, It is secondary research based
3 significant role in mediating the
1995 on two profile studies
effectiveness of pay system interventions.
Resilient Compensation programs improve PsyCap
4 Australia Industry Working paper
Programme, 2013 (resilience) of workers.
Faculty members strongly behave like
economic theory suggests: they not only
Uschi Backes- It is primary research that
USA & Services increase publications when monetary
5 Gellner & Axel collected data through a survey
Germany (Education) incentives are large but they also instantly
Schlinghoff, 2008 from 112 faculty members
cut them down as soon as monetary
incentives are gone.
The current average salary disadvantage
This study uses data on more for public institutions is primarily
Jennifer A. Rippner
Services than 1,000 institutions to concentrated in research-intensive
6 and Robert K. USA
(Education) examine institutional average institutions and the average salary gaps
Toutkoushian, 2015
salary. between public and private research
institutions have continued to increase.

215
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
Use data from the 1999
National Study of
Postsecondary Faculty
There is some evidence that the rewards
(NSOPF). Our data are from the
are higher in science and engineering.
1999 National Study of
Spending more time on teaching has no
Melguizo, Tatiana, Postsecondary Faculty
Services effect on salary, even in comprehensive
7 Strober, Myra H. (NSOPF), which surveyed 960
(Education) universities and liberal arts colleges.
(2007) public and private non-profit
Findings suggest that other types of
degree-granting postsecondary
institutions are emulating research
institutions and 28,576 faculty
institutions in their pursuit of prestige.
and instructional staff in the 50
states and the District of
Columbia.
The most meaningful recognition that
In this descriptive survey, 341
head nurses can provide is salary
randomly selected staff nurses
Services increases commensurate with performance
8 Blegen et al., 1992 America rated the extent of
(Others) levels, private verbal feedback to the staff
meaningfulness of 38 head
nurses, and written acknowledgement of
nurse recognition behaviours.
the staff nurses’ contributions.
It is a longitudinal survey.
There is a relationship of organizational
Conducting a two-wave survey
Shin, Taylor, & Seo, Services inducements and psychological resilience
9 Korea in a sample of 234 employees
2012 (Others) to employees' attitudes and behaviours
and 45 managers recruited from
toward organizational change.
an IT comp

216
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
The study is based on a national
sample of 78 organizations
Services
from the public and private HRM practices positively affect
Katou & Budhwar, (Others) &
10 Greece services sector in Greece, psychological contract Fufillment and
2012 Services
including education, health, and resultantly organizational performance.
(education)
banking, and on data obtained
from 348 employees.
The study supports the view that HRM
Katou, A. A., &
has a positive impact on productivity,
Budhwar, P. (2015).
through employee skills, attitudes, and
Human resource
behaviour. Additionally, the study finds
management and
that a 10 per cent increase in the extent of
organisational
the systematic use of HR practices will
productivity: a
lead to a 3.27 per cent increase in the total
systems approach
11 production, and that employee
based empirical
compensation and incentives play the
analysis. Journal of
most important role in improving
Organizational
production efficiency. Further, the study
Effectiveness:
finds that for each additional year of
People and
systematic use of HR practices, total
Performance, 2(3),
production will be increasing by 0.07 per
244-266.
cent per annum.

217
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
In a field study of 1,264
engineers and technicians, a
categorical perspective on
While the four categories of individual
PsyCap antecedents is tested. In
differences, contextual factors
the second study of 529 Chinese
(supervision, job characteristics) and
China technology employees, the
demographics were relatively broad and
12 Avey, 2014 and the Industry results from Study 1 are
encompassing, there may be a category
USA replicated with less overall
that is uniquely powerful in predicting
variance explained raising
PsyCap not measured in this study.
measurement and cultural
Second, no one category was saturated.
boundary conditions of current
tools employed for empirical
research on PsyCap.
Cai, W., Lysova, E.
I., Bossink, B. A.,
Khapova, S. N., &
Wang, W. (2019).
Psychological Results demonstrate that both SSC and
capital and self‐ Through rigorous hypotheses job characteristics positively moderate the
reported employee Eastern testing (N = 356 individuals PsyCap–creativity relationship. Additional
13 Mixed
creativity: The China from multiple industries in analyses reveal that PsyCap is most
moderating role of Chinese firms effective at enhancing creativity when
supervisor support both SSC and job characteristics are high.
and job
characteristics.
Creativity and
Innovation

218
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
Management, 28(1),
30-41.

A supportive organisational climate,


collaboration, communication, convenient
physical conditions of the school, parent
engagement, professional characteristics
Çimen, İ., & Ozgan,
and positive experiences emerged as
H. (2018).
contributors to teachers’ psychological
Contributing and The researchers followed a
capital. On the other hand, a strict
damaging factors qualitative approach and
bureaucratic focus and ongoing
related to the conducted a basic interpretative
interference by school principals;
psychological capital Services study to determine the
14 Turkey inadequate physical conditions of the
of teachers: A (education) perceptions of 14 teachers, who
school; negative attitudes of parents and
qualitative analysis. were selected for participation
colleagues; the poor reputation of the
Issues in using a maximum variation
teaching profession; and negative
Educational approach.
experiences of teachers were identified as
Research, 28(2),
damaging to psychological capital. Low
308-328.
pay, heavy workloads and the
appointment process, on the other hand,
were seen as the most damaging aspects
for psychological capital.

219
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
Fox, C., Webster, B.
D., & Casper, W. C.
(2018). Spirituality, Results revealed a statistically significant
psychological capital One hundred and fifteen relationship between spirituality and
and employee employee-supervisor dyads psychological capital. Further, the results
15 performance: An America Mixed were surveyed and the data also suggest that spirituality has an
empirical collected were analyzed using indirect relationship with performance,
examination. Journal path analysis. which is carried through psychological
of Managerial capital.
Issues, 30(2), 194-
153.
Kim, M., Kim, A. C.
H., Newman, J. I.,
Ferris, G. R., &
Perrewé, P. L.
Results indicate that the meaningful work
(2019). The
of employees and a supportive
antecedents and
organizational climate positively
consequences of The researchers recruited 708
influenced psychological capital, thereby
positive Services employees from the athletic
16 America leading to high levels of job satisfaction
organizational (Others) departments of Division I
and psychological well-being.
behaviour: The role institutions.
Psychological capital also functioned
of psychological
either as a partial mediator or as a full
capital for
mediator.
promoting employee
well-being in sport
organizations. Sport
Management

220
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
Review, 22(1), 108-
125.

Ferraro, T., Pais, L.,


Moreira, J. M., &
Dos Santos, N. R. The Decent Work
(2018). Decent work Questionnaire, the
That decent work plays an important role
and work motivation Multidimensional Work
Services in promoting a positive approach to work,
in knowledge Portugal Motivation Scale, and the
(Others) & and that Psychological Capital is an
17 workers: The and Psychological Capital
Services important mediating variable in the
mediating role of Brazil Questionnaire were
(education) promotion of autonomous Work
psychological administered to 3004
motivation.
capital. Applied knowledge workers, in Portugal
Research in Quality and Brazil.
of Life, 13(2), 501-
523.
Luthans, Youssef- PsyCap may be influenced by various
18 Morgan, & Avolio, Book contextual factors. More categories can be
2015 found.

221
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
Other work has found that resilience can
King, D. D., be fostered through the provision of
Newman, A., & workplace support (e.g., Grant, Curtayne,
Luthans, F. (2016). & Burton, 2009). Researchers might look
Not if, but when we at the relative importance of supportive
19 need resilience in the organizational and managerial practices in
workplace. Journal fostering both individual and collective
of organizational resilience and consider the differential
behaviour, 37(5), effects of collective and individual
782-786. resilience on workplace outcomes at
different levels of analysis.
Results indicated that, although teachers
valued the extrinsic/ancillary rewards
a survey was conducted of
Azumi and Lerman Services more than intrinsic rewards (professional,
20 USA teachers in the Newark, New
(1987) (education) collegial, and creative), there were
Jersey, school district
variations in response by educational and
school levels.
Osibanjo, Adeniji, Selected private University in The results showed a strong relationship
Services
21 Falola, and Nigeria Ogun State, South-West between compensation packages and
(education)
Heirsmac (2014) Nigeria. employees' performance.
MICHAEL, B., Result of the study revealed that there is a
PRINCE, A. F., & significant relationship exist between
CHACKO, A. compensation package and employee
The population under the study
22 (2016). IMPACT OF India retention, the more an employee is
was 71 employees of Kollam.
COMPENSATION rewarded or compensated, the longer they
PACKAGE ON remain in an organization and there is a
EMPLOYEE positive result exist between

222
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
RETENTION. compensation package and job
CLEAR satisfaction.
International Journal
of Research in
Commerce &
Management, 7(10).
Abasili, F. N.,
Bambale, A. J. A., & The research adopted a
Aliyu, M. S. (2017). descriptive survey research It was found that there is a significant
The effect of reward design, whereby questionnaire relationship between employee
on employee was used to elicit information performance with salary, Bonus and
Services
23 performance in Nigeria from a sample of 282 Incentive, Promotion and Recognition.
(Others)
Kano state board of respondents sampled from a But Pension and Gratuity have a negative
internal revenue. population of 1050 employees and statistically insignificant impact on
International Journal of Kano State Board of Internal employee performance.
of Global Business, Revenue (KSBIR)
10(2), 1-16.
Bibi, M. (2019).
The outcomes of the study revealed a
Impact of Talent The sample of the study was
significant positive effect of talent
Management comprised of 364 employees
management practices i.e. recruitment and
Practices on working in healthcare
Services selection for talent attraction, coaching
24 Employee Pakistan organizations to determine the
(Others) and mentoring for learning and
Performance. performance of employee
development of talent, compensation for
SEISENSE Journal because of talent management
retention of talent on employee
of Management, practices.
performance.
2(1), 22-32.

223
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
Rumokoy, F.,
The result of this study showed that
Lapian, S. J., &
compensation and training have a
Sangkay, R. (2016).
significant influence on employee
The Influence of the
performance at BNI 46 Cabang Manado.
Compensation and The objective of the study is to
For the company, in this case, BNI 46
Training Toward know the influence of the
Services Manado branch, it€™s recommended to
25 Employee Indonesia compensation and training
(Others) keep enhancing the training because the
Performance at Bni toward employee performance
variable has a significant influence on
46 Manado Branch. at BNI 46 Manado branch.
employee performance. And for the
Jurnal Riset
compensation have an influence but not
Ekonomi,
significant to employee performance. So
Manajemen, Bisnis
the compensation needs to improve
dan Akuntansi, 4(1).
The study revealed that there is a positive
Nyambura, S. D.
relationship between performance and
(2018). Influence of
intrinsic rewards. They also indicated that
Reward
The targeted population was their performance would improve if their
Management on
United States International salaries were increased. The study
University
University Africa ( USIU-A) established that both the physical
Employee Services
26 Kenya full-time staff and faculty which attributes and the work environment at
Performance: A (education)
was 424 as at the period of USIU-A contributed to their performance.
Case Study of
study between July and August The university leadership equally
USIU-A (Doctoral
2018. influenced their performance. Employees
dissertation, United
equally received constructive feedback
States International
from their supervisors in regards to their
University-Africa).
performance.

224
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
Heneman and Coyne Pay levels, pay increases and incentives
27
(2007) positively impact employee performance.
Thuo, D. W., &
Muathe, S. M. A.
There exist a strong positive relationship
(2018). Workplace
between social support and employee
Environment and
performance. According to the regression
Employees The target population for this
model, a unit improvement in employee
Performance in the study was the 950 staff working
health and safety would lead to an
Public Sector: A at the Ministry of Lands,
increase in employee performance. On
Case of Ministry of Housing and Urban
Services workplace incentives, majority of the
28 Land, Housing and Kenya Development head office in
(Others) respondents strongly agreed that
Urban Development Nairobi. The researcher used
performance recognition can improve
Nairobi City County, simple random sampling to
their job performance. There exist a strong
Kenya. International select a sample of 95
positive relationship between workplace
Journal of Current respondents.
incentives and employee performance
Aspects in Human
meaning as workplace incentives improve
Resource
the employee performance also improves.
Management, 1, 29-
46.
Akhtar, C. S.,
Aamir, A.,
The data was collected from the
Khurshid, M. A.,
faculty members of 10
Abro, M. M. Q., & Services A strong and positive relationship and
29 Pakistan universities located in the twin
Hussain, J. (2015). (education) influence of total reward on retention.
cities of Islamabad and
Total rewards and
Rawalpindi, Pakistan.
retention: Case study
of higher education

225
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
institutions in
Pakistan. Procedia-
Social and
Behavioral Sciences,
210, 251-259.
Riaz, H., Akhtar, C.,
& Aslam, R. (2018).
Total Rewards and
Employee
Performance:
The study adopted a descriptive The results indicated a significant
Investigating the
survey design with a sample of relationship between total rewards and
Mediating Role of Services
30 Pakistan 207 respondents belonging to employee performance, financial rewards
Employee (Others)
different cadres of management and performance, non-financial rewards
Motivation in
of telecom companies. and performance.
Telecom Sector.
Pakistan
Administrative
Review, 2(3), 342-
356.
Jakovljevic, M.,
The population in this study The results show that the employees
Zupan, J., &
consisted of 145 employees in a would prefer more incentives, and the
Coleman, A. (2018).
manufacturing company in factors of a positive organisational climate
Model of incentive
31 Croatia Industry Croatia. A sample of 42 were far lower than expected by its
system for
managers was randomly drawn employees and even lower than what they
employees: A case
from the population (Dawson considered to be essential in order to
of a manufacturing
2002). perform their jobs effectively and to
company in Croatia.

226
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
South African contribute to achieving company
Journal of Business objectives.
Management, 49(1),
1-10.

Total reward systems strongly impact


32 WorldatWork (2007) Book
employee performance.
The study findings indicate that extrinsic
reward improved performance of
employees, the intrinsic reward to a large
The total number of employees
extent is a contributory factor to employee
was 980 broken down into 26
Rugami, Wambua, Services performance, organization reward is a
33 Kenya managers, 104 supervisors and
and Mwatha (2016) (others) crucially important and indispensable
850 other staff. The sample size
factor to employee performance while
was 105.
team-based reward systems encouraged
free riding and stifle individual
performance.
Teachers must be paid more, and a pay
system must be developed that rewards
teachers not just for the experience, but
also for skills, knowledge, and, ultimately,
Services Opinion papers and descriptive
34 Hassel (2002) USA performance. This is a new approach: pay
(education) report
teachers more and tie the higher pay to
what schools need from teachers to
improve student learning. The paper does
not advocate a single alternative

227
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
compensation system, but it does lay out
critical design choices and options,
discussing the advantages and pitfalls of
different designs.
This paper utilises psychological
motivation theory and research to examine
developments designed by management to
Meyer, L. H., & promote faculty productivity. We
Evans, I. M. (2003). challenge the naive implementation of
Motivating the change strategies that do not appear to be
professoriate: Why based on theory and/or research.
Services
35 sticks and carrots are USA theoretical Strategies are proposed for monitoring
(education)
only for donkeys. such changes in policy and practice within
Higher education well-established social science paradigms
management and to ensure achievement of desired ends
policy, 15, 151-168. rather than undesirable negative effects
upon the university’s capacity to fulfil its
role in the creation and transmission of
new knowledge.
This research identifies sources of
motivation that resonate with what has
underpinned traditional university
USA & Services remuneration, promotion and performance
36 Dunkin (2003) theoretical
Canada (education) schemes. However, this does not mean
that there is no need for change to those
traditional schemes. As academic work
becomes more complex and the academic

228
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
labour market more differentiated, there is
a need to recognise this greater diversity
within extended promotional and reward
schemes.

Experiential exercises, on-the-job training,


and coaching have been found to
contribute to building self-efficacy
(Luthans & Youssef, through guided mastery experiences.’’By
37 theoretical
2004) investing in Human, Social, and Now
Positive Psychological Capital
Management, competitive advantage can
be attained.
Followers’ psychological capital
Walumbwa,
Services influenced their own job performance to a
38 Peterson, Avolio, & USA theoretical
(others) greater extent when the service climate
Hartnell, 2010)
was more positive.
James S Services At research-oriented universities, the pay
39
Fairweather, 1995 USA (education) is positively related to research.
Employees’ PsyCap and performance
both in volatile as well as peaceful days
40 are likely to be boosted through the
implementation of resilience-enhancing
Bardole, 2014 HR practices.

229
Sr. Sector
No Researchers Country /Study Data Sources/Study Sample Findings
. Area
This hypothesis was tested in
three experiments (with
sample sizes of 76, 99, and 111)
in which reward and self-
efficacy were
manipulated and performance
was measured using different
manipulations
and tasks in both within-factor
and between-factor designs.
41
This was a 2 × 2 mixed factorial
design experiment, in which
self-efficacy was manipulated
between-person, and
the reward was manipulated
within-person. Seventy-six When the reward was high, the effect of
undergraduate management self-efficacy on performance was positive,
students participated whereas when the reward was low, the
Stirin, Ganzach, & in the study for experimental effect of self-efficacy on performance was
Pazy (2016) credit. negative.
One of the experiment was
conducted at the University of
42 Haifa. The subjects were 160 Empirical evidence provides that pay
Gneezy & Services male and female undergraduate system attributes directly affects
Rustichini, (2000) Israel (education) students productivity.

230
Appendix D: Questionnaire

Research Questionnaire

Dear Respected Sir/Madam!

Assalm-o-Alaikum,

I am pursuing my PhD (Management) at COMSATS Institute of Information Technology,


Lahore. I am conducting my PhD research on the topic of “The impact of compensation
systems attributes on teacher’s performance with associated variables in universities
of Pakistan.” This research will contribute good knowledge to the field of our study. You
are much respected potential respondent for our study.

All data by your good self will be safe as utilized only for academic purpose. It will be
further dealt with due confidence.

We will remain thankful for your attention and provision of time.

Rana Nadir Idrees


Research Scholar

231
Section One: Demographics and Human capital , Please tick the appropriate box

1 Name of faculty/department:
2 Position/Designation:
Assistant Professor
Lecturer Associate Professor
Professor

Dean Other In case other, please specify:


3 Qualification:
Ph.D. M.Phil/MS Masters Bachelors
4 Experience in teaching Years with current university/department:
(years):
5 No. of hours worked last week
6 Gender :
Male Female
7 Area of expertise/specialization
8 Nature of employment contract :
BPS TTS SPS
9 Type of university :
Public Private Semi/Autonomous

Partially
Strongly Strongly
Section Two: disagree
Disagree agree/partially Agree
agree
disagree

I am offered short-term
10
incentives or bonus programs
I am offered non-financial
11
recognition rewards.
I am offered long-term
12
incentives or bonus programs.
I am offered financial
13
recognition reward.
I am offered a lump sum bonus
14 within the most recently
completed fiscal year.
In my opinion, I am given across-
the- board adjustments in the
15
base pay within the most recent
completed fiscal year.
I have the same opinions to the
16 degree to which annual raise are
based on seniority.

232
I have the same opinion to the
17 degree to which annual raise are
based on performance
Partially
Strongly Strongly
Disagree agree/partially Agree
disagree agree
disagree

I am given a number of vacation


18
days or holidays.
I am given a number of paid sick
19
days.
I am offered a pension plan or
20
other savings or retirement plan.
I am offered a reasonable
21
medical coverage.
I give monthly amount to be
22
eligible for medical insurance.
I am given intangible rewards in
23
terms of work-life balance.
I am offered intangible rewards
24 in terms of career development
opportunities.
I am offered intangible rewards
25 in terms of the nature of the job
or quality of the work.
I am offered intangible rewards
26 in terms of work environment or
organizational climate.
Section 3:
I feel confident analyzing a long-
27
term problem to find a solution.
I feel confident in representing
28 my work area in meetings with
management.
I feel confident contributing to
29 discussions about the
company's strategy.
I feel confident helping to set
30
targets/goals in my work area.

31 I feel confident contacting people


outside the company (e.g.,

233
suppliers, customers) to discuss
problems.
I feel confident presenting
32 information to a group of
colleagues.
If I should find myself in a jam at
33 work, I could think of many ways
to get out of it.
At the present time, I am
34 energetically pursuing my work
goals.
There are lots of ways around
35
any problem.
Partially
Strongly Strongly
Disagree agree/partially Agree
disagree agree
disagree

Right now I see myself as being


36
pretty successful at work.
I can think of many ways to reach
37
my current work goals.
At this time, I am meeting the
38 work goals that I have set for
myself.
When things are uncertain for
39 me at work I usually expect the
best.
If something can go wrong for
40
me work-wise it will. (R)
I always look on the bright side
41
of things regarding my job.
I’m optimistic about what will
42 happen to me in the future as it
pertains to work.
In this job, things never work out
43
the way I want them to. (R)
I approach this job as if "every
44
cloud has a silver lining".
When I have a setback at work, I
45 have trouble recovering from it
and moving on. (R)

234
I usually manage difficulties one
46
way or another at work.
I can be "on my own" so to speak
47
at work if I have to.
I usually take stressful things at
48
work in stride.
I can get through difficult times at
49 work because I've experienced
difficulty before.
I feel I can handle many things at
a time at this job.
50

Section 4:
How would you rate your level Very Low Neutral High Very
51 of teaching performance with Low High
regard to :
A Total courses taught.
Total hours per week teaching
B
classes
C Total students enrollment
D Total classes /sections taught.
Capacity to attract and retain
E
students
How would you rate your level
52 of research performance with
regard to:
Quantification of Presentations,
A
exhibitions, performances
Articles in refereed published
B
journals
Articles published in non-
C
refereed journals
C Published reviews and chapters.
Books, monographs, and
D
reports
E Total number of grants/contract.

235
Total funds received from all
F
sources.
How would you rate your
53 level of administrative/service
performance with regard to:
Number of administrative
A committees served on at this
institution.
Public representations on behalf
B of the University in an official or
professional capacity.

Conference
C
organization/management.

Community service relevant to


D
the field of expertise.

Section 5:

Partially
Strongly Strongly
Disagree agree/partially Agree
disagree agree
disagree

I have connections in the


54 industry.

I have connections in peer


55 universities/institutions.

Partially
Strongly Strongly
Disagree agree/partially Agree
disagree agree
disagree

I have connections in local


research organizations
56 (private/public).

I have access to contacts in


57 research journal publication
community.

236
When things get tough, my
colleagues will give me
58 professional advice.

When things get tough, my


colleagues will spend time to
59 help me.

When things get tough, my


60 colleagues are trustworthy.

When things get tough, my


61 colleagues will encourage me.

When things get tough, my


62 organization will provide help.

When things get tough, my boss


63 will provide help.

My colleagues will help me finish


64 my job.

When I encounter problems,


there will be many colleagues in
65 my agency that I can ask for a
piece of advice.

Partially
low/partially Very
Very Low High
high high
low

Section 6:
How would you rate the
fulfillment of the employer
promises with respect to the
66
opportunities for training and
development in your
organization?
How would you rate the
67 fulfillment of the employer
promises with respect to the

237
opportunities for promotion in
your organization?
Partially
low/partially Very
Very Low High
high high
low
How would you rate the
fulfillment of the employer
68 promises with respect to the
recognition for innovation for
new idea in your organization?
How would you rate the
fulfillment of the employer
69 promises with respect to the
feedback on performance in your
organization?
How would you rate the
fulfillment of the employer
70 promises with respect to the
interesting tasks in your
organization?
How would you rate the
fulfillment of the employer
71 promises with respect to the
respectful treatment in your
organization?
How would you rate the
fulfillment of the employer
72 promises with respect to the
reasonable job security in your
organization?
How would you rate the
fulfillment of the employer
promises with respect to a
73
pleasant and safe working
environment in your
organization?
How would you rate the
fulfillment of the employee
74
promises with respect to working
hard in your organization?
How would you rate the
fulfillment of the employee
promises with respect to uphold
75 company reputation in your
organization?

238
How would you rate the
fulfillment of the employee
promises with respect to show
76
loyalty to the organization in your
organization?

How would you rate the


fulfillment of the employee
77 promises with respect to develop
new skills and update old ones in
your organization?
How would you rate the
fulfillment of the employee
78
promises with respect to be
flexible in your organization?

Very Low Partially


low Very
low/partially High
high
high

How would you rate the


fulfillment of the employee
79 promises with respect to be
courteous to clients and
colleagues in your organization?
How would you rate the
fulfillment of the employee
80
promises with respect to be
honest in your organization?
How would you rate the
fulfillment of the employee
81 promises with respect to come
up with new ideas in your
organization?

Please tick against the type of other risks and challenges faced by compensation
82
system, which need to be addressed:

Lack of vision Lack of teacher Imposed Lack of


and strategic involvement in implementation funding and
direction the process resources

Lack of Ineffective
Highly optimistic Others,
Transparency Compensation
and difficult to please
and Fairness

239
achieve system specify
standards monitoring below

Uncontrollable
Lack of Lack of HR
elements
Supervisory management
hindering
competence culture
performance

Vague or
Lack of University,
ambiguous
awareness in departmental and
policies and
teachers individual goal
procedures
alignment

Following are my suggestions for compensation system improvement, which

83 may be helpful in creating higher and positive impact on teacher performance:

84. Pleas provide ranking of importance your give to following types of


Compensation System Attributes (CSAs): (Rank order each box according to your
preference by specifying the number 1, 2, 3………)

Compensation _______
Benefits _______
Development and Career Opportunities _______
Work life _______
Performance and Recognition _______

240
Appendix E: Population and Sampling of HEIs in Pakistan

Proportionate Proportionate
Region Total Public Private Public Universities Private Universities
Azad Jammu
Kashmir 7 5 2 2 1
Baluchistan 8 7 1 2 0
Federal Area 30 24 6 7 2
Khyber-
29 19 10
Pakhtunkhwa 6 3
Punjab 50 26 24 8 7
Sindh 48 19 29 6 9
Total 172 100 72 30 22

241
Appendix F: Complete list of HEIs in Pakistan
Controlled
S/N Name Email Address Location Type
by
Air University, Govt. of
1 www.au.edu.pk Islamabad Public
Islamabad Pak
Allama Iqbal Open
Govt. of
2 University, www.aiou.edu.pk Islamabad Public
Pak
Islamabad (AIOU)
Bahria University, Govt. of
3 www.bahria.edu.pk Islamabad Public
Islamabad Pak
COMSATS Institute
of Information Govt. of
4 www.ciit.edu.pk Public
Technology, Islamabad Pak
Islamabad
Dawood University
Govt. of
5 of Engineering & www.dcet.edu.pk Public
Karachi Pak
Technology, Karachi
Federal Urdu
University of Arts,
Govt. of
6 Sciences & www.fuuast.edu.pk Public
Islamabad Pak
Technology,
Islamabad
Institute of Space
Govt. of
7 Technology, www.ist.edu.pk Islamabad Public
Pak
Islamabad (IST)
International Islamic
Govt. of
8 University, www.iiu.edu.pk Islamabad Public
Pak
Islamabad
Karakurum
International Govt. of
9 www.kiu.edu.pk Public
University, Gilgit, Gilgit Pak
Gilgit Baltistan
National College of Govt. of
10 www.nca.edu.pk Lahore public
Arts, Lahore (NCA) Pak
National Defense
Govt. of
11 University, www.ndu.edu.pk Islamabad Public
Pak
Islamabad (NDU)
National Textile
Govt. of
12 University, www.ntu.edu.pk Faisalabad Public
Pak
Faisalabad
National University Govt. of
13 www.numl.edu.pk Public
of Modern Islamabad Pak

242
Languages,
Islamabad (NUML)
National University
of Sciences &
Govt. of
14 Technology, www.nust.edu.pk Public
Islamabad Pak
Rawalpindi/
Islamabad (NUST)
NFC Institute of
Govt. of
15 Engineering & www.nfciet.edu.pk Multan
Pak
Technology, Multan
Pakistan Institute of
Development Govt. of
16 www.pide.org.pk public
Economics (PIDE), Islamabad Pak
Islamabad
Pakistan Institute of
Engineering & Govt. of
17 www.pieas.edu.pk public
Applied Sciences, Islamabad Pak
Islamabad (PIEAS)
Pakistan Institute of
Govt. of
18 Fashion and Design, www.pifd.edu.pk Lahore public
Pak
Lahore
Pakistan Military
Govt. of
19 Academy, Not Available Abbottabad public
Pak
Abbottabad (PMA)
Pakistan Naval www.paknavy.gov. Govt. of
20
Academy, Karachi pk Karachi Pak
Shaheed Zulfiqar Ali
Bhutto Medical www.szabmu.edu.p Govt. of
21 public
University, k Islamabad Pak
Islamabad
Quaid-i-Azam
Govt. of
22 University, www.qau.edu.pk Islamabad public
Pak
Islamabad
University of FATA, Govt. of
23 Kohat public
Kohat Pak
Virtual University of Govt. of
24 www.vu.edu.pk Lahore public
Pakistan, Lahore Pak
Bahauddin Zakariya Govt. of
25 www.bzu.edu.pk Public
University, Multan Multan Punjab
Fatima Jinnah
Govt. of
26 Women University, www.fjwu.edu.pk Public
Rawalpindi Punjab
Rawalpindi
Government College
Govt. of
27 University, www.gcuf.edu.pk Public
Faisalabad Punjab
Faisalabad

243
Government College Govt. of
28 www.gcu.edu.pk Public
University, Lahore Lahore Punjab
Government College
for Women Govt. of
29 www.gcuf.edu.pk Public
University, Faisalabad Punjab
Faisalabad
Government College
Govt. of
30 Women University, www.gcwus.edu.pk Public
Sialkot Punjab
Sialkot
Ghazi University, Govt. of
31 www.gudgk.edu.pk Dera Ghazi Public
Dera Ghazi Khan Punjab
Khan
Government Sadiq
College Women Govt. of
32 www.gscwu.edu.pk Public
University, Bahawalpur Punjab
Bahawalpur
Islamia University, Govt. of
33 www.iub.edu.pk Public
Bahawalpur Bahawalpur Punjab
Information
Technology Govt. of
34 www.itu.edu.pk Public
University of the Lahore Punjab
Punjab, Lahore
King Edward
Govt. of
35 Medical University, www.kemu.edu.pk Public
Lahore Punjab
Lahore
Kinnaird College for www.kinnaird.edu. Govt. of
36 Public
Women, Lahore pk Lahore Punjab
Khawaja Fareed
University of
Engineering & Under Govt. of
37 Rahim Yar Public
Information construction Punjab
Khan
Technology, Rahim
Yar Khan
Lahore College for
Govt. of
38 Women University, www.lcwu.edu.pk Public
Lahore Punjab
Lahore
Muhammad Nawaz
Shareef University www.mnsuam.edu. Govt. of
39 Public
of Agriculture, pk Multan Punjab
Multan
Pir Mehr Ali Shah
Arid Agriculture, Govt. of
40 www.uaar.edu.pk Public
University Rawalpindi Punjab
Rawalpindi

244
University of
Govt. of
41 Agriculture, www.uaf.edu.pk Public
Faisalabad Punjab
Faisalabad
University of Govt. of
42 www.ue.edu.pk Public
Education, Lahore Lahore Punjab
University of
Govt. of
43 Engineering & www.uet.edu.pk Public
Lahore Punjab
Technology, Lahore
University of
www.uettaxila.edu. Govt. of
44 Engineering & Public
pk Taxila Punjab
Technology, Taxila
University of Gujrat, Govt. of
45 www.uog.edu.pk Public
Gujrat Gujrat Punjab
University of Health Govt. of
46 www.uhs.edu.pk Public
Sciences, Lahore Lahore Punjab
University of Govt. of
47 www.uos.edu.pk Public
Sargodha, Sargodha Sargodha Punjab
University of the Govt. of
48 www.pu.edu.pk Public
Punjab, Lahore Lahore Punjab
University of
Veterinary & Govt. of
49 www.uvas.edu.pk Public
Animal Sciences, Lahore Punjab
Lahore
The Women Govt. of
50 www.wum.edu.pk
University, Multan Multan Punjab
Benazir Bhutto
Govt. of
51 Shaheed University www.bbsul.edu.pk Public
Karachi Sindh
Lyari, Karachi
DOW University of
Govt. of
52 Health Sciences, www.duhs.edu.pk Public
Karachi Sindh
Karachi
Gambat Institute of
Govt. of
53 Medical Sciences, www.gims.edu.pk Public
Khairpur Sindh
Khairpur
Institute of Business
Govt. of
54 Administration, www.iba.edu.pk Public
Karachi Sindh
Karachi
Jinnah Sindh Govt. of
55 www.jsmu.edu.pk Public
Medical University Karachi Sindh
Liaquat University
of Medical and Govt. of
56 www.lumhs.edu.pk Public
Health Sciences, Jamshoro Sindh
Jamshoro Sindh.
Mehran University Govt. of
57 www.muet.edu.pk Public
of Engineering & Jamshoro Sindh

245
Technology,
Jamshoro
NED University of
Govt. of
58 Engineering & www.neduet.edu.pk Public
Karachi Sindh
Technology, Karachi
Peoples University
of Medical and
Health Sciences for Govt. of
59 www.pumhs.edu.pk Public
Women, Nawabshah Nawabshah Sindh
(Shaheed
Benazirabad)
Quaid-e-Awam
University of
Engineering, Govt. of
60 www.quest.edu.pk Public
Sciences & Nawabshah Sindh
Technology,
Nawabshah
Shah Abdul Latif Govt. of
61 www.salu.edu.pk Public
University, Khairpur Khairpur Sindh
Shahaeed Mohtarma
Benazir Bhutto www.smbbmu.edu. Govt. of
62 Public
Medical University, pk Larkana Sindh
Larkana
Sindh Agriculture
Govt. of
63 University, www.sau.edu.pk Public
Tandojam Sindh
Tandojam
Sukkur Institute of
Business www.iba- Govt. of
64 Public
Administration, suk.edu.pk Sukkur Sindh
Sukkur
Sindh Madresatul
Govt. of
65 Islam University, www.smiu.edu.pk Public
Karachi Sindh
Karachi
Shaheed Benazir
Bhutto University www.sbbusba.edu.p Govt. of
66 Public
Shaheed k Nawabshah Sindh
Benazirabad
Shaheed Zulfiqar Ali
Govt. of
67 Bhutto University of www.szablc.edu.pk Public
Karachi Sindh
Law, Karachi
University of Govt. of
68 www.uok.edu.pk Public
Karachi, Karachi Karachi Sindh
University of Sindh, Govt. of
69 www.usindh.edu.pk Public
Jamshoro Jamshoro Sindh

246
Abdul Wali Khan www.awkum.edu.p Govt. of
70 Public
University, Mardan k Mardan KPK
Bacha Khan
Govt. of
71 University, www.bkuc.edu.pk/ Public
Charsadda KPK
Charsadda
Shaheed Benazir
Bhutto Women Govt. of
72 www.fwu.edu.pk Public
University, Peshawar KPK
Peshawar
Gomal University, Govt. of
73 www.gu.edu.pk/ Public
D.I. Khan D.I.Khan KPK
Hazara University, Govt. of
74 www.hu.edu.pk/ Public
Dodhial, Mansehra Manshera KPK
Institute of
Management www.imsciences.ed Govt. of
75 Public
Science, Peshawar u.pk Peshawar KPK
(IMS)
Islamia College, Govt. of
76 www.icp.edu.pk Public
Peshawar Peshawar KPK
Khyber Medical
Govt. of
77 University, www.kmu.edu.pk Public
Peshawar KPK
Peshawar
Kohat University of
Govt. of
78 Science and www.kust.edu.pk Public
Kohat KPK
Technology, Kohat
Khushal Khan
Govt. of
79 Khattak University, Under construction Public
Karak KPK
Karak
Khyber
Pakhtunkhwa
Govt. of
80 Agricultural www.aup.edu.pk Public
Peshawar KPK
University,
Peshawar
University of
Engineering & www.uetpeshawar. Govt. of
81 Public
Technology, edu.pk Peshawar KPK
Peshawar
Shaheed Benazir
Govt. of
82 Bhutto University, www.sbbu.edu.pk Public
Dir KPK
Sheringal, Dir
University of
Malakand, Govt. of
83 www.uom.edu.pk Public
Chakdara, Dir, Malakand KPK
Malakand

247
University of Govt. of
84 www.upesh.edu.pk Public
Peshawar, Peshawar Peshawar KPK
University of
Govt. of
85 Science & www.ustb.edu.pk Public
Bannu KPK
Technology, Bannu
University of Swat, www.swatuniversit Govt. of
86 Public
Swat y.edu.pk/ Swat KPK
University of Govt. of
87 www.uoh.edu.pk/ Public
Haripur, Haripur Haripur KPK
www.uoswabi.edu. Govt. of
88 University of Swabi Public
pk/ Swabi KPK
Balochistan
University of
Govt. of
90 Engineering & buetk.edu.pk Public
Khuzdar Baloch
Technology,
Khuzdar
Balochistan
University of
Information Govt. of
91 www.buitms.edu.pk Public
Technology & Quetta Baloch
Management
Sciences, Quetta
Lasbela University
of Agriculture, www.luawms.edu.p Govt. of
92 Public
Water and Marine k Lasbela Baloch
Sciences
Sardar Bahadur
Govt. of
93 Khan Women www.sbkwu.edu.pk Public
Quetta Baloch
University, Quetta
University of Govt. of
94 www.uob.edu.pk Public
Balochistan, Quetta Quetta Baloch
University of Turbat, Govt. of
95 www.uot.edu.pk Public
Turbat Turbat Baloch
University of Govt. of
96 www.uoli.edu.pk Public
Loralai, Loralai Loralai Baloch
Mirpur University of
Science and Govt. of
97 www.must.edu.pk Public
Technology Mirpur AJK
(MUST), AJ&K
University of Azad
Jammu & Kashmir,
Govt. of
98 Muzaffarabad, Azad www.ajku.edu.pk Muzaffaraba Public
AJK
Kashmir, d
Muzaffarabad

248
University of Govt. of
99 www.upr.edu.pk Public
Poonch, Rawalakot Rawalakot AJK
Women University
under Govt. of
100 of Azad Jammu and Public
construction Bagh AJK
Kashmir Bagh
University of
Management
under Govt. of
101 Sciences and Public
construction Kotli AJK
Information
Technology, Kotli
Aga Khan Govt. of
102 www.aku.edu Karachi Private
University, Karachi Pak
Foundation
Govt. of
103 University, www.fui.edu.pk Islamabad Private
Pak
Islamabad
Lahore University of
Management Govt. of
104 www.lums.edu.pk Private
Sciences (LUMS), Lahore Pak
Lahore
National University
of Computer and Govt. of
105 www.nu.edu.pk Private
Emerging Sciences, Islamabad Pak
Islamabad
Riphah International
Govt. of
106 University, www.riphah.edu.pk Islamabad Private
Pak
Islamabad
Shifa Tameer-e-
Govt. of
107 Millat University, www.stmu.edu.pk Islamabad Private
Pak
Islamabad
Ali Institute of Govt. of
108 www.aie.edu.pk Private
Education Lahore Punjab
Beaconhouse
Govt. of
109 National University, www.bnu.edu.pk Private
Lahore Punjab
Lahore
Forman Christian
www.fccollege.edu. Govt. of
110 College, Lahore Private
pk Lahore Punjab
(university status)
Global Institute, Govt. of
111 www.global.edu.pk Private
Lahore Lahore Punjab
Hajvery University, www.hajvery.edu.p Govt. of
112 Private
Lahore k Lahore Punjab
HITEC University, www.hitecuni.edu.p Govt. of
113 Private
Taxila k Taxila Punjab

249
Imperial College of
www.imperial.edu. Govt. of
114 Business Studies, Private
pk Lahore Punjab
Lahore
Institute of
www.pakaims.edu. Govt. of
115 Management Private
pk Lahore Punjab
Sciences, Lahore
Institute of Southern Govt. of
116 www.usp.edu.pk Private
Punjab, Multan Multan Punjab
Lahore Leads Govt. of
117 www.leads.edu.pk Private
University, Lahore Lahore Punjab
Lahore School of www.lahoreschoolo Govt. of
118 Private
Economics, Lahore feconomics.edu.pk Lahore Punjab
Lahore Garrison Govt. of
119 www.lgu.edu.pk Private
University, Lahore Lahore Punjab
Minhaj University, Govt. of
120 www.mul.edu.pk Private
Lahore Lahore Punjab
National College of
Business Govt. of
121 www.ncbae.edu.pk Private
Administration & Lahore Punjab
Economics, Lahore
Nur International Under Govt. of
122 Private
University, Lahore construction Lahore Punjab
Govt. of
123 Qarshi University www.qu.edu.pk Private
Lahore Punjab
The GIFT
Govt. of
124 University, www.gift.edu.pk Private
Gujranwala Punjab
Gujranwala
The Superior www.superior.edu. Govt. of
125 Private
College, Lahore pk Lahore Punjab
The University of
Govt. of
126 Faisalabad, www.tuf.edu.pk Private
Faisalabad Punjab
Faisalabad
University of
Govt. of
127 Central Punjab, www.ucp.edu.pk Private
Lahore Punjab
Lahore
University of Govt. of
128 www.uol.edu.pk Private
Lahore, Lahore Lahore Punjab
University of
Govt. of
129 Management & www.umt.edu.pk Private
Lahore Punjab
Technology, Lahore
University of South Govt. of
130 www.usa.edu.pk Private
Asia, Lahore Lahore Punjab
University of Wah, Govt. of
131 www.uw.edu.pk Private
Wah Wah Punjab

250
Baqai Medical Govt. of
132 www.baqai.edu.pk Private
University, Karachi Karachi Sindh
Commecs Institute
of Business & www.commecsinsti Govt. of
133 Private
Emerging Sciences, tute.edu.pk Karachi Sindh
Karachi
Dadabhoy Institute
www.dadabhoy.edu Govt. of
134 of Higher Private
.pk Karachi Sindh
Education,Karachi
DHA Suffa Govt. of
135 www.dsu.edu.pk Private
University, Karachi Karachi Sindh
Greenwich www.greenwichuni Govt. of
136 Private
University, Karachi versity.edu.pk Karachi Sindh
Hamdard University, www.hamdard.edu. Govt. of
137 Private
Karachi pk Karachi Sindh
Habib University, Govt. of
138 www.habib.edu.pk Private
Karachi Karachi Sindh
Indus University, Govt. of
139 www.indus.edu.pk Private
Karachi Karachi Sindh
Indus Valley School
of Art and www.indusvalley.e Govt. of
140 Private
Architecture, du.pk Karachi Sindh
Karachi
Institute of Business
Govt. of
141 Management, www.iobm.edu.pk Private
Karachi Sindh
Karachi
Institute of Business
Govt. of
142 and Technology, www.biztek.edu.pk Private
Karachi Sindh
Karachi
Iqra University, Govt. of
143 www.iqra.edu.pk Private
Karachi Karachi Sindh
Isra University, Govt. of
144 www.isra.edu.pk Private
Hyderabad Hyderabad Sindh
Jinnah University Govt. of
145 www.juw.edu.pk Private
for Women, Karachi Karachi Sindh
Karachi Institute of
www.pafkiet.edu.p Govt. of
146 Economics & Private
k Karachi Sindh
Technology, Karachi
KASB Institute of Govt. of
147 www.kasbit.edu.pk Private
Technology, Karachi Karachi Sindh
Karachi School for
Govt. of
148 Business & www.ksbl.edu.pk Private
Karachi Sindh
Leadership

251
Muhammad Ali
Govt. of
149 Jinnah University, www.jinnah.edu Private
Karachi Sindh
Karachi
Newport Institute of
www.newports.edu. Govt. of
150 Communications & Private
pk Karachi Sindh
Economics, Karachi
Preston Institute of
Management, Govt. of
151 pimsat-khi.edu.pk Private
Science and Karachi Sindh
Technology, Karachi
Preston University, www.preston.edu.p Govt. of
152 Private
Karachi k Karachi Sindh
Shaheed Zulfikar Ali
Bhutto Institute of Govt. of
153 www.szabist.edu.pk Private
Sc. & Technology Karachi Sindh
(SZABIST), Karachi
Shaheed Benazir
Govt. of
154 Bhutto City www.sbbcu.edu.pk Private
Karachi Sindh
University, Karachi
Sir Syed University
Govt. of
155 of Engg. & www.ssuet.edu.pk Private
Karachi Sindh
Technology, Karachi
Sindh Institute of
Govt. of
156 Medical Sciences, www.siut.org Private
Karachi Sindh
Karachi
Textile Institute of Govt. of
157 www.tip.edu.pk Private
Pakistan, Karachi Karachi Sindh
Nazeer Hussain Govt. of
158 www.nhu.edu.pk Private
University, Karachi Karachi Sindh
Zia-ud-Din Govt. of
159 www.zu.edu.pk Private
University, Karachi Karachi Sindh
Shaheed Benazir
Govt. of
160 Bhutto Dewan Private
Karachi Sindh
University, Karachi
Abasyn University, www.abasyn.edu.p Govt. of
161 Private
Peshawar k Peshawar KPK
CECOS University
of Information
Govt. of
162 Technology and www.cecos.edu.pk Private
Peshawar KPK
Emerging Sciences,
Peshawar
City University of
www.cityuniversity Govt. of
163 Science and Private
.edu.pk Peshawar KPK
Information

252
Technology,
Peshawar
Gandhara
www.gandhara.edu. Govt. of
164 University, Private
pk Peshawar KPK
Peshawar
Ghulam Ishaq Khan
Institute of
Govt. of
165 Engineering www.giki.edu.pk Private
Topi KPK
Sciences &
Technology, Topi
Iqra National
www.iqrapsh.edu.p Govt. of
166 University, Private
k Peshawar KPK
Peshawar
Northern University, www.northern.edu. Govt. of
167 Private
Nowshera pk Nowshera KPK
Preston University, www.preston.edu.p Govt. of
168 Private
Kohat k Kohat KPK
Qurtaba University
of Science and
www.qurtuba.edu.p Govt. of
169 Information Private
k D.I.Khan KPK
Technology, D.I.
Khan
Sarhad University of
Science and
Govt. of
170 Information www.suit.edu.pk Private
Peshawar KPK
Technology,
Peshawar
Al-Hamd Islamic http://www.aiu.edu. Govt. of
171 Quetta Private
University, Quetta pk Baloch
Al-Khair University, www.alkhair.edu.p Govt. of
172 Bhimber Private
AJ&K k AJK
Mohi-ud-Din
http://www.miu.edu Nerain Govt. of
173 Islamic University, Private
.pk Sharif AJK
AJK

253

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