4 Int. J. Human Resources Development and Management, Vol. 6, No. 1, 2006 Copyright © 2006 Inderscience Enterprises Ltd. Determinants of role orientation and organisational commitment under skill-based pay: a path model Mohammed A. Al-Waqfi* College of Business and Economics, UAE University, P.O. Box 17555, Al-Ain, UAE Fax: (+9713) 762-4384 E-mail: mwaqfi@uaeu.ac.ae *Corresponding author Naresh C. Agarwal DeGroote School of Business, McMaster University, 1280 Main Street, Hamilton, Ontario L8S 4M4, Canada Fax: (905) 521-8995 E-mail: agarwal@mcmaster.ca Abstract: There is very little research that sheds light on employee attitudes under skill-based pay (SBP), in particular whether employees under SBP indeed exhibit attitudes essential for successful operation of such a pay plan. The current study uses a path analysis approach to examine how SBP affects employees’ attitudes with particular focus on organisational commitment and role orientation. Based on data from a large sample of employees, it finds that selected perceived SBP plan characteristics are significant direct and indirect predictors of organisational commitment and role orientation. The study discusses various theoretical and practical implications that result from these findings. Keywords: skill-based pay; organisational commitment; role orientation. Reference to this paper should be made as follows: Al-Waqfi, M.A. and Agarwal, N.C. (2006) ‘Determinants of role orientation and organisational commitment under skill-based pay: a path model’, Int. J. Human Resources Development and Management, Vol. 6, No. 1, pp.4–21. Biographical notes: Mohammed A. Al-Waqfi is an Assistant Professor in Human Resources and Management in the College of Business and Economics at the United Arab Emirates University. He received his Master’s Degree in Economics and his PhD in Human Resources from McMaster University. His research interests include compensation management, work design and work attitudes, employment equity, and cross-cultural management issues. Naresh C. Agarwal is a Professor in Human Resources at the DeGroote School of Business, McMaster University. He received his PhD Degree in Industrial Relations from the University of Minnesota. His major areas of interests include compensation systems, human resources planning, managerial values, and equity issues in employment. He has published and consulted with private and public sector organisations in these areas. He has also acted as an arbitrator in labour disputes under Ontario’s Public Service Act and Human Rights Code.