Revising the Kano model for designing an employee compensation system: Developing one-dimensional attributes

Abstract

Purpose

The purpose of this paper is twofold: first, to revise the Kano model with a focus on one-dimensional attributes; and second, to use the revised model for categorizing and prioritizing various employee compensation strategies.

Design/methodology/approach

The Kano evaluation table has been revised and the one-dimensional attribute has been further extended to three categories of O_O, O_M and O_A. In the next step, the literature review-based identified strategies have been categorized and prioritized according to the developed Kano model. Consequently, an employee compensation system has been proposed to a process-based manufacturing company as a case study.

Findings

Findings indicated that out of the 44 employee compensation strategies, typically 6 were must-be, 13 were one-dimensional, 18 were attractive and 7 were indifferent. Also, the results of the revised Kano model indicated that typically out of the 13 one-dimensional strategies, 7 were one-dimensional tending toward must-be (O_M); and 6 were one-dimensional tending toward attractive (O_A).

Research limitations/implications

The case study was limited to one company. The validity of the proposed model can be further studied in a larger population. This study provides managers with a more accurate instrument of decision making in selecting more differentiated employee compensation strategies, which, in turn, might lead to more employee satisfaction.

Originality/value

Theoretically, this study is different from existing studies, since almost none of the previous studies extended the Kano evaluation table for one-dimensional attributes. Practically, this study is another evidence of the application of the Kano model in the field of human resource management and in particular contributes to the design of employee compensation systems.

Citation

Vaez Shahrestani, H., Shahin, A., Teimouri, H. and Shaemi Barzoki, A. (2020), "Revising the Kano model for designing an employee compensation system: Developing one-dimensional attributes", The TQM Journal, Vol. 32 No. 1, pp. 78-91. https://doi.org/10.1108/TQM-05-2019-0153