A Study of the Relationship between Compensation System and Organizational Commitment

The important factor that may play significant role in improving organizational commitment of employees is financial and non-financial payment. This research seeks to investigate the relationship between the compensation system and organizational commitment of personnel in the Social Security Organization in Bandarabas, a city in South of Iran. The research method used in this study is descriptive-correlation type. The statistical sample consists of 160 employees and managers of Bandarabas Social Security Organization which was measured by Cochran's formula in the 95% confidence level. Data were gathered via two questionnaires; the reliability of which were measured by Cronbach's alpha; 87% and 84% for organizational commitment questionnaire and compensation questionnaire respectively; which confirmed the high reliability of the measurement instruments. The questionnaires validity has also been confirmed by some experts. The results showed that there is a significant positive relationship between compensation system and organizational commitment.