The impact of organisational culture on the dimensions of pay satisfaction in private and public construction firms in Libya

This research concentrates mainly on the impact of organisational culture on the dimensions of pay satisfaction in the construction industry in Libya, specifically with regard to Consultant Engineering Firms (CEF) in both the private and public sectors in Libya. The study primarily aims to establish a framework for this impact, which may result in applying sound Human Resource Management (HRM) policies in individual firms and in CEF in the both sectors. Historical reviews of the literature and of models of pay satisfaction found a void in the investigation of the impact of organisational culture on pay satisfaction namely in the context of the Middle East in general and Libya in particular. On this basis, this study presents the theories in the literature on pay satisfaction from 1930 through to the present date. It is generally agreed that pay dissatisfaction is one of the first causes of anxiety for those concerned with decreasing productivity phenomena. It also has negative consequences on the national economy. The negative consequences caused by pay dissatisfaction have also been argued to lead to lower motivation levels and performance. Based on the data on the dimensions of pay satisfaction (pay levels, pay benefits, pay rises and pay structure), this study examines targeted hypotheses concerning the link between organisational culture, demographic characteristics and the dimensions of pay satisfaction. Using a Pay Satisfaction Questionnaire (PSQ), 219 engineers working in the construction industry in both the private and public sectors participated in the study. The data obtained were used to analyse the impact of demographic characteristics and organisational culture consent on the dimensions of pay satisfaction. It is evident that demographic characteristics affect engineers in the private sector more than engineers working the public sector. Generally, engineers in the private sector are very satisfied with the salaries and wages policies in their sector. On the other hand, engineers in the public sector show dissatisfaction regarding their payments, due to the problems caused by the Law No 15 /1981 in Libya. Accordingly, engineers in this sector claim that there is a need for a reconsideration of the law and for establishing a schedule consistent with the current circumstances. Furthermore, the study has not been able to find any improvement in the policies pertaining to the salary system adopted by Libyan public construction firms. The study has identified organisational culture as a decisive factor that is influenced by pay satisfaction. Moreover, the study has found that all the types of organisational culture (clan culture; adhocracy culture, hierarchy culture, and market culture) have an impact on all the dimensions of pay satisfaction in Libyan private construction firms. On the other hand, only the dimension ofclan culturehas an impact on the dimensions of pay satisfaction in Libyan public construction firms. After studying organisational culture on pay satisfaction, the study recommends establishing a national research centre for salaries and wages in Libya to oversee all aspects of salaries and wages' laws as well as helping to establish plans for the future.