Antecedents of salesmen's compensation perceptions: A path analysis interpretation

Abstract

Selected antecedents of the valence of pay and the instrumentality of performance for pay were combined into an integrative framework and investigated in a study of 92 male life insurance agents (age range 21–67 yrs). Drawing on 2 models proposed by E. E. Lawler, it was hypothesized that valence would be a function of age, job level, income, pay satisfaction, and commission pay plan, while instrumentality perceptions would be a function of tenure, commission plan, and valence. Data were obtained from company sources and from a job-attitudes questionnaire. A path analytic investigation of the hypothesized linkages suggested that a more parsimonious model of pay perception determinants may be adequate. Specifically, valence was found to be independently and negatively related only to age and pay satisfaction, while instrumentality was a positive function of valence and a negative function of tenure. In addition, pay satisfaction was positively related to age and income and inversely related to job level. Implications of the suggested model are discussed in view of current practice. (25 ref) (PsycInfo Database Record (c) 2025 APA, all rights reserved)