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Assessment of Organizational Performance: Linking the Motivational Antecedents of Empowerment, Compensation and Organizational Commitment

Author

Listed:
  • Ibrahim Garba Muhammad

    (School of Business Management, College of Business, Universiti Utara Malaysia, Sintok, Kedah, Malaysia,)

  • Ibrahim Garba Muhammad

    (Department of Business Administration, Bayero University Kano, Kano Nigeria,)

  • Haim Hilman Abdullah

    (School of Business Management, College of Business, Universiti Utara Malaysia, Sintok, Kedah, Malaysia.)

Abstract

A growing body of knowledge in social exchange theory has long postulated social exchange interrelationships as the dominant practice within the organization. Specifically, nearly majority of previous studies utilizing social exchange theory concentrates on testing the direct effect of various organizational practices on functional and organizational outcome with little attention towards the intermediate mechanism facilitating such connection. In this vein, this study draws from social exchange theory to investigate the mediating role of organizational commitment on the effect of empowerment and compensation on organizational performance. Data was collected from bank managers using a cross sectional survey and all the direct and indirect propositions were supported. Organizational commitment was found to mediate the effect of empowerment and compensation on organizational performance. The limitations and implications of the study were discussed and area for future studies provided.

Suggested Citation

  • Ibrahim Garba Muhammad & Ibrahim Garba Muhammad & Haim Hilman Abdullah, 2016. "Assessment of Organizational Performance: Linking the Motivational Antecedents of Empowerment, Compensation and Organizational Commitment," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 974-983.
    • Handle: RePEc:eco:journ3:2016-04-44
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    References listed on IDEAS

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    1. Bentes, Alexandre Veronese & Carneiro, Jorge & da Silva, Jorge Ferreira & Kimura, Herbert, 2012. "Multidimensional assessment of organizational performance: Integrating BSC and AHP," Journal of Business Research, Elsevier, vol. 65(12), pages 1790-1799.
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    3. Ibrahim Garba Muhammad & Ibrahim Garba Muhammad & Haim Hilman Abdullah, 2016. "Assessment of Organizational Performance: Linking the Motivational Antecedents of Empowerment, Compensation and Organizational Commitment," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 974-983.
    4. Hyondong Kim & Kang Sung-Choon, 2013. "Strategic HR functions and firm performance: The moderating effects of high-involvement work practices," Asia Pacific Journal of Management, Springer, vol. 30(1), pages 91-113, March.
    5. Elaine Wallace & Leslie Chernatony & Isabel Buil, 2011. "How Leadership and Commitment Influence Bank Employees’ Adoption of their Bank’s Values," Journal of Business Ethics, Springer, vol. 101(3), pages 397-414, July.
    6. Harjinder Gill & John Meyer & Kibeom Lee & Kang-Hyun Shin & Chang-Young Yoon, 2011. "Affective and continuance commitment and their relations with deviant workplace behaviors in Korea," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 595-607, September.
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    8. Hyondong Kim & Sung-Choon Kang, 2013. "Erratum to: Strategic HR functions and firm performance: The moderating effects of high-involvement work practices," Asia Pacific Journal of Management, Springer, vol. 30(1), pages 317-317, March.
    9. Weihui Fu & Satish Deshpande, 2014. "The Impact of Caring Climate, Job Satisfaction, and Organizational Commitment on Job Performance of Employees in a China’s Insurance Company," Journal of Business Ethics, Springer, vol. 124(2), pages 339-349, October.
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    1. Ibrahim Garba Muhammad & Ibrahim Garba Muhammad & Haim Hilman Abdullah, 2016. "Assessment of Organizational Performance: Linking the Motivational Antecedents of Empowerment, Compensation and Organizational Commitment," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 974-983.

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    More about this item

    Keywords

    Organizational Performance; Empowerment; Compensation; Organizational Commitment;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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