The Mediating Role of Affective Commitment in the Organizational Rewards– Organizational Performance Relationship

Abstract

Human resources are the most important factor of quality at universities and in research. Therefore, universities must try to improve their human workforce quantitatively as well as qualitatively, by creating, attracting, and retaining experts at universities. The aim of this research is to evaluate the importance of the reward system as a factor of affective commitment and the effect of affective commitment on the organizational performance. The research was conducted in the universities located in the Central and Eastern Europe. In order to test the proposed hypotheses, exploratory factor analysis and mediation tests are applied, using 148 sample data from universities' academic and administration staff. The results indicate that organizational rewards play a significant role in influencing employees' attitudes related to improving the organizational performance. However, organizational performance is not influenced directly by organizational rewards, but through affective commitment. Organizational rewards are needed to increase the level of employees' commitment that will in return have a positive effect on employees' desire to contribute more to the organizational performance.

Turnover Intention Among Lecturers in Private Higher Education: The Direct Impact of Financial Rewards and Mediation of Job Satisfaction and Effective Organizational Commitment

“…-0.332). The Relation Between Financial Reward and Job Satisfaction, Affective Commitment, and Turnover Intention Our finding reveals that financial rewards found significantly affect affective organizational commitment, which in line with the study from Koo et al (2019) from South Korea using 307 samples from hotel employees and Hadziahmetovic & Dinc (2017) with 148 participants from the educational organization. Next, financial rewards also have a significant positive effect on job satisfaction.…”

“…Financial rewards contribute significantly towards increasing employee's job satisfaction, affective organizational commitment, and employee turnover intention (Koo et al, 2019;Choi et al, 2012;Hadziahmetovic and Dinc, 2017). Although there are ongoing debates regarding the effect of financial rewards on employees' behavior and work outcomes, many studies confirm that financial rewards will drive positive behavior.…”

Impact of Financial and Non-financial Rewards on Employee Motivation and Employee Commitment among SMEs textiles sector of Karachi Pakistan

“…Hypothesis 5 states that "employee commitment has a positive effect on employee motivation. " Commitment has three facets "normative commitment, affective commitment, and continuous commitment" (Hadžiahmetović & Dinç, 2017;Chipunza & Berry, 2010). All three facets of commitment individually and collectively stimulate employee motivation.…”

“…Many firms enhance employee commitment by rewarding them through "bonuses, profit sharing, and stock options" (Awino & Kipsang, 2020). Hadžiahmetović & Dinç (2017) suggest that employees expect their organizations to appreciate their performance through different financial rewards. When a firm meets employees' expectations, they remain committed to their work and do not think about moving to other organizations.…”

“…Johnson, Chang & Yang (2010) suggest that factors such as financial and non-financial rewards moderate employee commitment and motivation (Chipunza & Berry, 2010). A few studies have examined the effect of "normative commitment, affective commitment, and continuous commitment" on organizational consequences (Kreisman, 2002;Hadžiahmetović & Dinç, 2017). These studies found that all the facets of commitment that are "normative, affective, and continuous "stimulate employee motivation.…”