Mediating effect of work performance and organizational commitment in the relationship between reward system and employees’ work satisfaction

2018 ◽  
Vol 37 (1) ◽  
pp. 65-75 ◽  
Author(s):  
Muhammad Idrus Taba
Keyword(s):  
Organizational Commitment ◽  
Work Performance ◽  
Work Satisfaction ◽  
Reward System ◽  
Mediation Effect ◽  
Extrinsic Reward ◽  
Content Type ◽  
Intrinsic Reward ◽  
South Sulawesi ◽  
The Relationship

Purpose The purpose of this paper is to investigate the mediation effect of work performance and organizational commitment in the relationship between reward system and employees’ work satisfaction. Design/methodology/approach The study population constituted all employees/permanent employees (civil servants and non-civil servants) at Bank of BNI, Bank of BRI, Bank of Mandiri, and Bank of South Sulawesi. The analytical method used to test the hypothesis of the research was structural equation modeling. Findings Based on the analysis results, it can be concluded that the extrinsic reward system and the intrinsic reward system have a direct, significant effect on work performance and organizational commitment, and work performance and also organizational commitment have a direct, significant effect on work satisfaction. On the other hand, the extrinsic reward system and the intrinsic reward system have no direct effect on work performance, but work performance and organizational commitment as mediation variables bridge the relationship between the extrinsic reward system and the intrinsic reward system to work satisfaction. Originality/value Mediation effect (using the Sobel test) of work performance, and organizational commitment in the relationship between Reward Systems on work satisfaction, location of the study (no previous research for this relationship): Bank of South Sulawesi, Indonesia.

Trust in leaders, work satisfaction and work engagement in public hospitals

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ole Kristian Sandnes Håvold ◽  
Jon Ivar Håvold ◽  
Richard Glavee-Geo
Keyword(s):  
Work Engagement ◽  
Personal Development ◽  
Structural Equation ◽  
Work Performance ◽  
Work Satisfaction ◽  
Basic Needs ◽  
Public Hospitals ◽  
Content Type ◽  
Trust In Leaders ◽  
The Relationship

PurposeTo investigate the relationship between trust in leaders and work satisfaction on work engagement in public hospitals.Design/methodology/approachSurvey data were collected from 137 employees working in two medium-sized public hospitals. A model based on a review of the literature was developed and tested using variance-based structural equation technique.FindingsWork engagement is significantly influenced by trust in leaders and work satisfaction. Work satisfaction partially mediates the relationship between trust in leaders and work engagement. Furthermore, personal development, affiliation and belonging and basic needs for job fulfilment significantly influence work satisfaction. Likewise, basic needs for job fulfilment and co-workers' empathy significantly influence trust in leaders.Practical implicationsThis study indicates that in public hospitals satisfaction and trust in a leader have a substantial influence on work engagement, highlighting the importance of a good trust relationship in the workplace. It is also important for leaders to understand that increased work engagement leads to a well-motivated workforce, improved work performance, low absence from work due to sick leave and a good patient experience.Originality/valueNot much research has been done on the direct effects of trust and satisfaction on engagement. Moreover, the study contributes to the existing literature through the development and testing of the “work engagement model”.

Effect of commitment and customers’ satisfaction on the relationship between service quality and customer retention in rural banks in Makassar, Indonesia

2018 ◽  
Vol 37 (1) ◽  
pp. 53-64 ◽  
Author(s):  
Dian Anggraece Sigit Parawansa
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Structural Equation ◽  
Customer Retention ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Content Type ◽  
South Sulawesi ◽  
The Relationship ◽  
Intervening Variables

Purpose The purpose of this paper is to investigate the effect of commitment and customer’s satisfaction on the relationship between service quality and customer retention. Design/methodology/approach The research was conducted on the entire customer rural banks (BPR) in Makassar, South Sulawesi Province; the sample size comprised 300 respondents. Analysis equipment used in this study is a quantitative approach that is inferential statistical analysis with structural equation modeling based variance is known as a method WarpPLS. Findings The results of the analysis show that there is significant influence between the variables of service quality, commitment, customer satisfaction, and customer retention. It was also found that the results of the variables commitment and customer satisfaction mediate the effect of service quality on customer’s retention. Originality/value The study showed the mediation effect (using the Sobel test) of service quality on customer retention using commitment and customer satisfaction as intervening variables in rural banks; and the study was conducted in the customer rural banks (BPR) in Makassar, South Sulawesi Province, where no such study for this relationship has been conducted previously.

How to increase organizational commitment through transactional leadership

2016 ◽  
Vol 37 (4) ◽  
pp. 507-519 ◽  
Author(s):  
Leila Afshari ◽  
Paul Gibson
Keyword(s):  
Organizational Commitment ◽  
Transactional Leadership ◽  
Underlying Mechanism ◽  
Need Satisfaction ◽  
Mediation Effect ◽  
Healthcare Sector ◽  
Content Type ◽  
Psychological Need ◽  
Manufacturing Organization ◽  
The Relationship

Purpose – The purpose of this paper is to explore the relationship between transactional leadership and willing organizational commitment in two significantly different organizations (one from the healthcare sector and one from manufacturing). Design/methodology/approach – Partial Least Squares was used to develop a mediation model explaining the underlying mechanism between contingent reward leadership and willing organizational commitment. Findings – The data indicates that, as expected, the relationship between transactional leadership and willing commitment in the manufacturing organization was mediated by both competence and relatedness; however, in the healthcare organization, to the surprise, this relationship was mediated by competence only. Practical implications – The authors develop a model that could help organizational managers and consultants improve the productivity and effectiveness of their work by taking the findings into account. Originality/value – Previous research has focused on the effectiveness of transformational research: this paper is one of the first to explore the relationship between transactional leadership and willing organizational commitment, taking into account the mediation effect of psychological need satisfaction.

An Investigation on Extrinsic and Intrinsic Rewards on Employee Retention among Gen Y: A Study in Malaysian Manufacturing Companies

2020 ◽  
Vol 3 (1) ◽  
Keyword(s):  
Regression Analysis ◽  
Employee Retention ◽  
Future Research ◽  
Manufacturing Companies ◽  
Extrinsic Reward ◽  
Intrinsic Rewards ◽  
Gen Y ◽  
Intrinsic Reward ◽  
Factors Influencing ◽  
The Relationship

The aim of this study is to investigate the relationship between extrinsic and intrinsic reward on retention among Gen Y employees in Malaysian manufacturing companies. The data was collected from 113 respondents worked in manufacturing companies located in Seri Kembangan, Selangor using questionnaires. Multiple regression analysis was conducted to test the hypotheses. The results showed both extrinsic and intrinsic reward are the factors influencing retaining Gen Y in manufacturing companies. The discussion on the analysis, limitation of the study, recommendation for future research and conclusion were discussed at the end of this study. In a nutshell, it was proven extrinsic reward and intrinsic reward has contributed to the retention of Gen Y employees.

Impact of perceived corporate social responsibility on attitudes and behaviors of pharmacists working in MNCs

Humanomics ◽  
2017 ◽  
Vol 33 (4) ◽  
pp. 453-469 ◽  
Author(s):  
Muhammad Khaleel ◽  
Shankar Chelliah ◽  
Sana Rauf ◽  
Muhammad Jamil
Keyword(s):  
Corporate Social Responsibility ◽  
Organizational Commitment ◽  
Supervisory Support ◽  
Content Type ◽  
Attitudes And Behaviors ◽  
Perceived Supervisory Support ◽  
And Behaviors ◽  
Corporate Social ◽  
The Relationship

Purpose This study aims to find out how corporate social responsibility (CSR) initiatives are perceived by pharmacists and how it influences employees’ organizational commitment and organizational citizenship behavior (OCB) and role of perceived supervisor support in the study. Design/methodology/approach Pharmacists of different hierarchical levels from five multinational pharmaceutical industries in Pakistan were selected as study samples. Data were collected from 136 pharmacists working in Punjab Region. PLS-SEM was used to test the hypotheses. Findings The results from this study found that CSR was a predictor of affective organizational commitment (AOC) and OCB. AOC fully mediates the relationship between CSR and OCB. While perceived supervisory support did not moderate the relationship between AOC and OCB. Pharmaceutical firms can promote commitment toward organization and OCBs by initiating CSR activities. Research limitations/implications This research is one of the innovative studies that empirically examine the predicting role of CSR and moderating role of perceived supervisory support on employees’ attitude and behaviors in the pharmaceutical companies’ context. Moreover, this research will also help the management by adopting CSR activities as core element in shaping employees attitudes and behaviors. Originality/value It is a significant study shifting the focus of research into organizational behavior context and further influences employee’s attitudes and behavior because of perceived CSR in the pharmacy industry.

The relationship between perceptions of learning climate and employee innovative behavior and proficiency

2017 ◽  
Vol 46 (8) ◽  
pp. 1454-1474 ◽  
Author(s):  
Liat Eldor
Keyword(s):  
Public Sector ◽  
Working Environment ◽  
Mediation Effect ◽  
Learning Climate ◽  
Mediation Process ◽  
Job Engagement ◽  
Innovative Behavior ◽  
Role Performance ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between perceptions of learning climate and employee innovative behavior and proficiency. Design/methodology/approach Using robust analysis techniques on data from a sample of 419 employees and their supervisors from four different business and public sector organizations, the author tested the proposed relationships, as mediated by job engagement. Moreover, this mediation effect was examined in the light of sector of employment differences (business vs public). Findings The results were generally consistent with the hypothesized conceptual scheme, in that the indirect relationship between perceptions of learning climate and employees’ innovative behavior and proficiency was mediated by job engagement. However, with regard to sector employment differences, this mediation process was demonstrated among business sector employees only to the relationship between perceptions of learning climate and innovative behavior. When proficiency was included in the mediation model, this mediation effect was evident among public sector employees. Originality/value The research on perceptions of learning climate lacks empirical evidence on its implications for employees’ innovative behavior and proficiency. Although scholars contend that employees’ perceptions of learning climate should enhance their in-role and extra-role performance behaviors, these arguments are mainly non-empirical. Understanding whether perceptions of learning have an impact on employee intra- and extra-role performance behaviors is important, considering that the majority of workplace learning occurs through daily ongoing means that are part of the working environment and previous research results show that structured learning and formal training are less effective in improving employees’ performance at work.

The relationship between internal integration and manufacturing flexibility in the Egyptian industry

2019 ◽  
Vol 11 (1) ◽  
pp. 16-33 ◽  
Author(s):  
Magdy A. Khalaf ◽  
Mohamed Yehia El Mokadem
Keyword(s):  
Material Handling ◽  
Mediating Effect ◽  
Mediation Effect ◽  
Manufacturing Flexibility ◽  
Content Type ◽  
Research Findings ◽  
New Perspective ◽  
Internal Integration ◽  
The Relationship ◽  
Triadic Relationship

Purpose This paper aims to empirically investigate the triadic relationship between internal integration, internal flexibility and external flexibility. Design/methodology/approach This research hypothesized the mediation effect of internal flexibility on the relationship between internal integration and external flexibility. Survey data were collected and analyzed using simple and mediation regression analysis to test the study hypotheses. Findings The research finding reveals that machine, labor and material handling flexibilities; being as internal flexibility dimensions mediate the relationship between internal integration and volume and mix flexibilities; being as external flexibility dimensions. The results provided insufficient evidence on the mediating effect of routing flexibility on the relationship between internal integration and both volume and mix flexibilities. Research limitations/implications This research presents a new perspective for research studies to understand the factors that affect manufacturing flexibility. However, the nature of the surveyed sample and using of a single informant might limit the generalizability of the research findings. Practical implications This study provides useful insights for firms wishing to enhance their competitiveness through improving their flexibility. The companies should be aware of the importance of developing a suitable platform for coordinating inter-departmental activities to enhance its internal competencies, which, in turn, improve its customer-facing capabilities and boosts its competitiveness. Originality/value This paper contributes to knowledge by proposing and empirically testing the mediating effect of internal flexibility on the relationship between internal integration and external flexibility.

Attitude: mediator of subjective norm, religiosity and intention to adopt Islamic banking

2019 ◽  
Vol 11 (1) ◽  
pp. 81-96 ◽  
Author(s):  
Juma Bananuka ◽  
Musa Kasera ◽  
Grace Muganga Najjemba ◽  
Doreen Musimenta ◽  
Bob Ssekiziyivu ◽  
...  
Keyword(s):  
Methodological Approach ◽  
Subjective Norm ◽  
Mediating Effect ◽  
Mediation Effect ◽  
Future Research ◽  
Islamic Banking ◽  
Content Type ◽  
Intention To Adopt ◽  
The Relationship ◽  
Secular State

Purpose The purpose of this paper is to report on the results of a study carried out to examine the mediating effect of attitude in the relationship between subjective norm, religiosity and intention to adopt Islamic banking in a developing secular state like Uganda. Design/methodology/approach This study’ research design was cross sectional. Closed ended questionnaires were distributed to 258 managers of micro businesses in Uganda. Data were analyzed with the help of SPSS v22 and MedGraph program (Excel version). Findings Attitude is a significant mediator in the relationship between subjective norm and intention to adopt Islamic banking. Also, attitude significantly mediates the relationship between religiosity and intention to adopt Islamic banking. Research limitations/implications The study used only a single research methodological approach; therefore, future research could be undertaken using a mixed-methods approach. Practical implications Emphasis should be put on improving the mindsets of Ugandans toward Islamic banking. Originality/value While there has been a number of studies on Islamic banking, this study provides an initial empirical evidence on the mediation effect of attitude in the relationship between subjective norm, religiosity and intention to adopt Islamic banking in a single study in an African developing secular state like Uganda.

Exploring relationships among ethical climate types and organizational commitment

2017 ◽  
Vol 9 (1) ◽  
pp. 20-40 ◽  
Author(s):  
Japneet Kaur
Keyword(s):  
Organizational Commitment ◽  
Employee Turnover ◽  
Ethical Climate ◽  
Banking Sector ◽  
Banking Industry ◽  
Negative Impact ◽  
Predictive Ability ◽  
Content Type ◽  
The Relationship ◽  
Three Components

Purpose Indian banking sector is facing a number of challenges, and increasing number of corporate frauds and employee turnover are among the top list. Literature reveals that gaining insights about ethical climate may provide a possible solution and relief from the challenges being faced. This paper aims to contribute to the understanding of the prevalent various ethical climate types in the Indian banking industry. Furthermore, it presents interesting results by investigating the effect of five theorized ethical climate types on organizational commitment along with its three components in the banking sector. Design/methodology/approach This empirical research encompasses a descriptive research design. Sample uses 266 respondents from four prime banks of the Indian banking industry. Findings Statistical analyses unveiled that all five conceptualized ethical climate types are prevalent in the Indian banking industry. However, the perception of employees for caring climate was the highest among all others. In contrast to the results reported by Western studies, this research reveals a strong negative impact of instrumental climate on affective commitment. Furthermore, it has been seen that instrumental climate is a significant predictor for the three components of commitment (affective, continuance and normative). However, it fails to predict the overall organizational commitment construct. Likewise, opposed to findings of Western countries, law and code, rules and independent climate types have shown significant relationship and impact on organizational commitment for Indian banking sector employees. It has been found that different commitment components are predicted by a diverse mix of climate types in India. Practical implications Findings highlight varying strength of relationship and predictive ability of different ethical climate types with commitment. This helps in elucidating that managers and top executives should focus on building an ethical work environment to warrant high-level commitment among employees. Congruence between employee, manager and organizations’ perception of ethics is a pre-requisite for maintaining a long-term relationship among the parties. This study will enable understanding the role of ethical climate in reducing corporate frauds and employee turnover. Originality/value This research addresses a significant gap in literature by exploring the relationship between ethical climate and organizational commitment. The study uses data from the Indian banking industry which contributes to expanding knowledge of the relationship in the Indian context.

The mediation effect of job satisfaction and organizational commitment on the organizational learning effect of the employee performance

2019 ◽  
Vol 68 (7) ◽  
pp. 1208-1234 ◽  
Author(s):  
Muhammad Irfani Hendri
Keyword(s):  
Job Satisfaction ◽  
Organizational Commitment ◽  
Organizational Learning ◽  
Employee Performance ◽  
Limited Liability ◽  
Partial Least Square ◽  
Limited Liability Company ◽  
Content Type ◽  
West Kalimantan ◽  
The Relationship

Purpose The purpose of this paper is to test the effect of organizational learning on employees’ job satisfaction, the effect of organizational learning on the employees’ organizational commitment, the effect of the organizational learning on employees’ performance, the effect of job satisfaction on the employees’ performance and the effect of organizational commitment on employees’ performance in PTPN XIII (Limited Liability Company) in West Kalimantan. Design/methodology/approach The population in this research refers to all employees of PTPN XIII (Limited Liability Company) in West Kalimantan, with the criteria that the employees are from class III‒IV (population of access). The size of the sample is determined by using the partial least square approach, which is 10 times of the size of formative indicator, that is, job satisfaction with five indicators plus employee performance with eight indicators, with the total being 13 × 10 = 130 employees. The sampling method used is proportional random sampling technique, which is based on work area (three working areas: Head Office, West Kalimantan I District and West Kalimantan District II). Findings Learning organization has a significant and positive effect on job satisfaction and organizational commitment, but it has no significant effect on the employee performance. Job satisfaction and organizational commitment have a significant effect on employee performance. Originality/value The phenomenon that existed in PTPN XIII (Limited Liability Company) and referring from various previous research results, the study regarding employee performance was conducted using organizational learning variable as an exogenous variable and using job satisfaction and organizational commitment variable as an intervening variable. Robbins (1996) revealed that the relationship between organizational learning and performance is not very close. It is necessary to have other variables that can reinforce the relationship and to determine the extent to which the organizational learning can contribute to the improvement of the performance.

Sign in / Sign up

Export Citation Format

Share Document