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Author
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Chimuto, Yolanda T
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Title
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An analysis of the relationship between remuneration strategies and organisational commitment: a case of air Zimbabwe.
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Abstract
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The purpose of this study was to analyse the relationship between remuneration strategies and organisational commitment, with a focus on Air Zimbabwe as the case study. In a challenging economic environment characterised by high employee turnover, reduced morale, and limited resources, the aviation sector in Zimbabwe faces increasing pressure to retain skilled personnel. Remuneration has long been identified as a critical driver of employee commitment, yet its effectiveness is often influenced by the design, fairness, and perceived adequacy of reward systems. This research sought to determine the extent to which various remuneration strategies including basic pay, performance-based incentives, allowances, and non-monetary benefits affect the affective, continuance, and normative dimensions of organisational commitment among employees of Air Zimbabwe. The study was guided by several theoretical perspectives drawn from Chapter Two of the dissertation. Social exchange theory (Blau, 1964) was adopted to explain how reciprocal relationships between employer and employee, based on fair rewards, foster commitment while Herzberg’s Two-Factor Theory (1959, updated version 1968) highly noted the importance of both hygiene factors such as salary and motivators such as recognition and career growth. Meyer and Allen’s Three-Component Model of Organisational Commitment (1991) was adopted as the main framework for measuring affective, continuance, and normative commitment. A quantitative research approach was employed, using a structured questionnaire distributed to a stratified random sample of 152 employees across different departments. Data were analysed using descriptive statistics, correlation analysis, and multiple regression techniques to identify patterns and test hypotheses regarding the relationship between remuneration variables and commitment levels. The study achieved a Cronbach’s alpha coefficient above the recommended threshold of 0.7, confirming the reliability of the measurement scales. The data was analysed using the descriptive statistics and the SPSS version 20 was used to present and analyse the findings. The findings revealed a significant positive relationship between remuneration strategies and organisational commitment. Non-financial rewards such as recognition, training, and career development showed the strongest influence on affective commitment, while job security and basic salary were more strongly linked with continuance commitment. Normative commitment was largely shaped by perceptions of fairness and transparency in reward systems. The study concludes that a balanced remuneration mix that integrates both monetary and non-monetary rewards is essential for enhancing employee loyalty and performance. It recommends that Air Zimbabwe and other state-owned enterprises adopt transparent and equitable pay structures, regularly benchmark their remuneration packages against industry standards, and strengthen non-financial rewards such as recognition, career growth, and employee involvement. Additionally, it is recommended that management invest in communication strategies to build trust and commitment through clarity on pay policies.
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Date
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June 2025
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Publisher
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BUSE
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Keywords
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Remuneration strategies
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organisational commitment
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employee retention
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Supervisor
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NIL
