The Study on Effect of the Fairness of Performance-Based Pay on Organizational Commitment and Turnover Intention and Moderating Effect of Generational Differences

The purpose of this study is to analyze the effect of fairness of performance-based on organizational commitment and turnover intention, and to investigate the moderating effect of generational differences between the MZ generation and the older generation on this relationship. Based on the survey data of 387 workers at distribution companies located in Busan and Yeongnam, the hypothesis was verified using multiple regression analysis and Process macro (Model 1) using SPSS 29.0 and SPSS Macro 3.4. The main results are as follows. First, among the sub-factors of performance-based pay fairness, distribution fairness and procedural fairness were found to have a significant positive effect on organizational commitment. Second, it was confirmed that organizational commitment had a significant negative effect on turnover intention. Third, it was found that among the sub-factors of performance-based pay fairness, procedural fairness and interaction fairness had a negative effect on turnover intention. Fourth, it was found that distribution fairness, procedural fairness, and interaction fairness, which are performance-based pay fairness, have a moderating effect according to generational differences in relation to turnover intention. This study is meaningful in understanding the effects of fairness and intergenerational heterogeneity on organizational effectiveness in the field of organizational behavior and human resource management, by subdividing the perception of performance-based fairness and the relationship between generational commitment and turnover intention.