Study on Relationships among Compensation Model, Psychological Contract Fit and Organizational Effectiveness

Using data of 128 employers and 526 employees from 20 companies, the paper studies the relationships among compensation model, psychological contract fit and organizational effectiveness, based on the review of the past research about compensation and psychological contract. Results show that the obligation fit between the employer and the employees in the employees' psychological contract affect the relationship between compensation model and organizational effectiveness significantly. Furthermore, compensation model moderate the psychological contract fit between the employer and the employees and intention to turnover significantly. At last, the paper discussed the implications of the study and the directions for future research.