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

Nereida Hadziahmetovic, Muhammet Sait Dinc

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.


Full Text:

PDF

References


Abdullah, Z., Ahsan, N., & Alam, S. S. (2009). The Effect of Human Resource Management Practices on Business Performance among Private Companies in Malaysia. International Journal of Business and Management, 4(6), 65.

Alaarj, S., Abidin-Mohamed, Z., & Bustamam, U. S. B. A. (2016). Mediating Role of Trust on the Effects of Knowledge Management Capabilities on Organizational Performance. Procedia - Social and Behavioral Sciences, 235, 729–738. https://doi.org/10.1016/j.sbspro.2016.11.074

Alderfer, C. P. (1968). [Review of Review of Managerial Attitudes and Performance, by L. W. Porter & E. E. Lawler]. Administrative Science Quarterly, 13(1), 177–180. https://doi.org/10.2307/2391269

Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychology, 63(1), 1–18. https://doi.org/10.1111/j.2044-8325.1990.tb00506.x

Allen, N. J., & Meyer, J. P. (1996). Affective, Continuance, and Normative Commitment to the Organization: An Examination of Construct Validity. Journal of Vocational Behavior, 49(3), 252–276. https://doi.org/10.1006/jvbe.1996.0043

Amin, M., Khairuzzaman Wan Ismail, W., Zaleha Abdul Rasid, S., & Daverson Andrew Selemani, R. (2014). The impact of human resource management practices on performance: Evidence from a Public University. The TQM Journal, 26(2), 125–142. https://doi.org/10.1108/TQM-10-2011-0062

Angle, H. L., & Perry, J. L. (1983). Organizational Commitment: Individual and Organizational Influences. Work and Occupations, 10(2), 123–146. https://doi.org/10.1177/0730888483010002001

Armstrong, M. (1993). Managing reward systems. Buckingham ; Philadelphia: Open University Press.

Armstrong, M. (2007). A handbook of employee reward management and practice (2nd ed). London: Kogan Page. Retrieved from http://www.myilibrary.com?id=91580

Arthur, J. B. (1994). Effects of Human Resource Systems on Manufacturing Performance and Turnover. The Academy of Management Journal, 37(3), 670–687. https://doi.org/10.2307/256705

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182.

Becker, B. E., Huselid, M. A., Becker, B. E., & Huselid, M. A. (1998). High Performance Work Systems and Firm Performance: A Synthesis of Research and Managerial Implications. In Research in Personnel and Human Resource Management (pp. 53–102).

Bożena Bednarek‐Michalska. (2002). Creating a job description for an electronic resources librarian. Library Management, 23(8/9), 378–383. https://doi.org/10.1108/01435120210439852

Breaugh, J. A. (1999). Further Investigation of the Work Autonomy Scales: Two Studies. Journal of Business and Psychology, 13(3), 357–373. https://doi.org/10.1023/A:1022926416628

Buchanan, D. A., & Huczynski, A. (2004). Organizational behaviour: an introductory text (5th ed). Harlow, England ; New York: FT/Prentice Hall.

Camelo-Ordaz, C., García-Cruz, J., Sousa-Ginel, E., & Valle-Cabrera, R. (2011). The influence of human resource management on knowledge sharing and innovation in Spain: the mediating role of affective commitment. The International Journal of Human Resource Management, 22(7), 1442–1463. https://doi.org/10.1080/09585192.2011.561960

Carmeli, A., Gilat, G., & Waldman, D. A. (2007). The Role of Perceived Organizational Performance in Organizational Identification, Adjustment and Job Performance*. Journal of Management Studies, 44(6), 972–992. https://doi.org/10.1111/j.1467-6486.2007.00691.x

Caroline Aubé, Vincent Rousseau, & Estelle M. Morin. (2007). Perceived organizational support and organizational commitment: The moderating effect of locus of control and work autonomy. Journal of Managerial Psychology, 22(5), 479–495.

https://doi.org/10.1108/02683940710757209

Chi Ming Chow, & Brian H. Kleiner. (2002). How to differentiate essential job duties from marginal job duties. Managerial Law, 44(1/2), 121–127. https://doi.org/10.1108/03090550210770704

Chiang, F. F. T., & Birtch, T. A. (2012). The Performance Implications of Financial and Non-Financial Rewards: An Asian Nordic Comparison. Journal of Management Studies, 49(3), 538–570. https://doi.org/10.1111/j.1467-6486.2011.01018.x

Christo Boshoff, & Gerhard Mels. (1995). A causal model to evaluate the relationships among supervision, role stress, organizational commitment and internal service quality. European Journal of Marketing, 29(2), 23–42. https://doi.org/10.1108/03090569510080932

Christo Boshoff, & Janine Allen. (2000). The influence of selected antecedents on frontline staff’s perceptions of service recovery performance. International Journal of Service Industry Management, 11(1), 63–90. https://doi.org/10.1108/09564230010310295

Culpepper, R. A., Gamble, J. E., & Blubaugh, M. G. (2004). Employee stock ownership plans and three-component commitment. Journal of Occupational and Organizational Psychology, 77(2), 155–170. https://doi.org/10.1348/096317904774202126

De Gieter, S., & Hofmans, J. (2015). How reward satisfaction affects employees’ turnover intentions and performance: an individual differences approach: Rewards and employee outcomes. Human Resource Management Journal, 25(2), 200–216. https://doi.org/10.1111/1748-8583.12072

Delaney, J. T., & Huselid, M. A. (1996). The Impact of Human Resource Management Practices on Perceptions of Organizational Performance. Academy of Management Journal, 39(4), 949–969. https://doi.org/10.2307/256718

Delery, J. E., & Shaw, J. D. (2001). The strategic management of people in work organizations: Review, synthesis, and extension. In Research in Personnel and Human Resources Management (Vol. 20, pp. 165–197). Emerald Group Publishing Limited. https://doi.org/10.1016/S0742-7301(01)20003-6

Dinc, M. S., & Plakalovic, V. (2016). Impact of Caring Climate, Job Satisfaction, and Affective Commitment on Employees’ Performance in the Banking Sector of Bosnia and Herzegovina. Eurasian Journal of Business and Economics, 9(18), 1–16.

Eby, L. T., Freeman, D. M., Rush, M. C., & Lance, C. E. (1999). Motivational bases of affective organizational commitment: A partial test of an integrative theoretical model. Journal of Occupational and Organizational Psychology, 72(4), 463–483. https://doi.org/10.1348/096317999166798

Elenkov, D. S. (2002). Effects of leadership on organizational performance in Russian companies. Journal of Business Research, 55(6), 467–480.

European Commission. (2005, April 20). Communication from the Commission - Mobilising the brainpower of Europe: enabling universities to make their full contribution to the Lisbon Strategy {SEC(2005) 518}. Retrieved May 6, 2017, from http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:52005DC0152

Flynn, D. M., & Tannenbaum, S. I. (1993). Correlates of Organizational Commitment: Differences in the Public and Private Sector. Journal of Business and Psychology, 8(1), 103–116.

Frenkel, S., Korczynski, M., Shire, K. A., & Tam, M. (1999). On the Front Line: Organization of Work in the Information Economy. Ithaca, NY:

Cornell University Press.

Gallie, D., Felstead, A., & Green, F. (2001). Employer Policies and Organizational Commitment in Britain 1992–97. Journal of Management Studies, 38(8), 1081–1101. https://doi.org/10.1111/1467-6486.00273

Glisson, C., & Durick, M. (1988). Predictors of Job Satisfaction and Organizational Commitment in Human Service Organizations. Administrative Science Quarterly, 33(1), 61–81. https://doi.org/10.2307/2392855

Haar, J. M., & Spell, C. S. (2004). Programme knowledge and value of work-family practices and organizational commitment. The International Journal of Human Resource Management, 15(6), 1040–1055. https://doi.org/10.1080/09585190410001677304

Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work: test of a theory. Organizational Behavior and Human Performance, 16(2), 250–279. https://doi.org/10.1016/0030-5073(76)90016-7

Hamilton, F. E. I., Andrews, K. D., & Pichler-Milanović, N. (Eds.). (2005). Transformation of cities in Central and Eastern Europe: towards globalization. Tokyo ; New York: United Nations University Press.

Herzberg, F. (1966). Work and the Nature of Man. Cleveland, OH: World.

Hofmans, J., De Gieter, S., & Pepermans, R. (2013). Individual differences in the relationship between satisfaction with job rewards and job satisfaction. Journal of Vocational Behavior, 82(1), 1–9. https://doi.org/10.1016/j.jvb.2012.06.007

Hoque, K. (1999). Human Resource Management and Performance in the UK Hotel Industry. British Journal of Industrial Relations, 37(3), 419–443. https://doi.org/10.1111/1467-8543.00135

Humphrey, S. E., Nahrgang, J. D., & Morgeson, F. P. (2007). Integrating motivational, social, and contextual work design features: a meta-analytic summary and theoretical extension of the work design literature. The Journal of Applied Psychology, 92(5), 1332–1356. https://doi.org/10.1037/0021-9010.92.5.1332

Jennifer Rowley. (1996). Motivation and academic staff in higher education. Quality Assurance in Education, 4(3), 11–16. https://doi.org/10.1108/09684889610125814

Jeryl L. Shepherd, & Brian P. Mathews. (2000). Employee commitment: academic vs practitioner perspectives. Employee Relations, 22(6), 555–575. https://doi.org/10.1108/01425450010379199

Judd, C. M., & Kenny, D. A. (1981). Process Analysis: Estimating Mediation in Treatment Evaluations. Evaluation Review, 5(5), 602–619. https://doi.org/10.1177/0193841X8100500502

Kalleberg, A. L. (1977). Work Values and Job Rewards: A Theory of Job Satisfaction. American Sociological Review, 42(1), 124–143. https://doi.org/10.2307/2117735

Katz, R., & Van Maanen, J. (1977). The Loci of Work Satisfaction: Job, Interaction, and Policy. Human Relations, 30(5), 469–486. https://doi.org/10.1177/001872677703000505

Katzenbach, J. R., & Smith, D. K. (1993). The wisdom of teams: creating the high-performance organization. Boston, Mass: Harvard Business School Press.

Lebas, M., & Euske, K. (2002). A conceptual and operational delineation of performance. In A. Neely (Ed.), Business performance measurement (pp. 65–79). Cambridge: Cambridge University Press. https://doi.org/10.1017/CBO9780511753695.006

Lee, F.-H., Lee, T.-Z., & Wu, W.-Y. (2010). The relationship between human resource management practices, business strategy and firm performance: evidence from steel industry in Taiwan. The International Journal of Human Resource Management, 21(9), 1351–1372.

https://doi.org/10.1080/09585192.2010.488428

Lee, H., & Choi, B. (2003). Knowledge Management Enablers, Processes, and Organizational Performance: An Integrative View and Empirical Examination. Journal of Management Information Systems, 20(1), 179–228.

Lew, T. (2009). The relationships between perceived organizational support, felt obligation, affective organizational commitment and turnover intention of academics working with private higher educational institutions in Malaysia. European Journal of Social Sciences, 9(1), 72–87.

Liao, Y. (2011). The effect of human resource management control systems on the relationship between knowledge management strategy and firm performance. International Journal of Manpower, 32(5/6), 494–511. https://doi.org/10.1108/01437721111158170

LOSCOCCO, K. A. (1990). Reactions to Blue-Collar Work: A Comparison of Women and Men. Work and Occupations, 17(2), 152–177. https://doi.org/10.1177/0730888490017002002

Malhotra, N., Budhwar, P., & Prowse, P. (2007). Linking rewards to commitment: an empirical investigation of four UK call centres. The International Journal of Human Resource Management, 18(12), 2095–2128. https://doi.org/10.1080/09585190701695267

Manning, M. L., Borton, D. L., & Rumovitz, D. M. (2012). Infection preventionists’ job descriptions: Do they reflect expanded roles and responsibilities? American Journal of Infection Control, 40(9), 888–890. https://doi.org/10.1016/j.ajic.2011.12.008

Manţa, Ş. G., Şarlea, M., & Vaidean, V. L. (2015). Comparative Analysis of University Education Systems from the Central and Eastern European Countries. Procedia Economics and Finance, 32, 1276–1288. https://doi.org/10.1016/S2212-5671(15)01505-1

Marchington, M., Wilkinson, A., & Marchington, L. (2008). Human resource management at work: people management and development (4. ed). London: Chartered Institute of Personnel and Development.

Martin-Perez, V., & Martin-Cruz, N. (2015). The mediating role of affective commitment in the rewards–knowledge transfer relation. Journal of Knowledge Management, 19(6), 1167–1185. https://doi.org/10.1108/JKM-03-2015-0114

Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61–89. https://doi.org/10.1016/1053-4822(91)90011-Z

Meyer, J. P., & Smith, C. A. (2000). HRM Practices and Organizational Commitment: Test of a Mediation Model. Canadian Journal of Administrative Sciences / Revue Canadienne Des Sciences de l’Administration, 17(4), 319–331. https://doi.org/10.1111/j.1936-4490.2000.tb00231.x

Mottaz, C. J. (1988). Determinants of Organizational Commitment. Human Relations, 41(6), 467–482. https://doi.org/10.1177/001872678804100604

Mowday, R. T., Steers, R. M., & Porter, L. W. (1979). The measurement of organizational commitment. Journal of Vocational Behavior, 14(2), 224–247. https://doi.org/10.1016/0001-8791(79)90072-1

Murali Sambasivan, Loke Siew‐Phaik, Zainal Abidin Mohamed, & Yee Choy Leong. (2011). Impact of interdependence between supply chain partners on strategic alliance outcomes: Role of relational capital as a mediating construct. Management Decision, 49(4), 548–569.

https://doi.org/10.1108/00251741111126486

Newman, A., & Sheikh, A. Z. (2012). Organizational rewards and employee commitment: a Chinese study. Journal of Managerial Psychology, 27(1), 71–89. https://doi.org/10.1108/02683941211193866

Panaccio, A., VanDenBerghe, C. L., & Ayed, A. K. B. (2014). The role of negative affectivity in the relationships between pay satisfaction, affective and continuance commitment and voluntary turnover : a moderated mediation model. Human Relations, 67(7).

Parasuraman, A., Berry, L. L., & Zeithaml, V. A. (1990). An empirical examination of relationships in an extended service quality model. Cambridge, Mass: Marketing Science Institute.

Paul Lyons. (2009). Team training for creating performance templates. Team Performance Management: An International Journal, 15(5/6), 257–275. https://doi.org/10.1108/13527590910983521

Phelan, S. E., & Lin, Z. (2001). Promotion Systems and Organizational Performance: A Contingency Model. Computational & Mathematical Organization Theory, 7(3), 207–232. https://doi.org/10.1023/A:1011986519310

Probst, T. M. (2003). Exploring Employee Outcomes of Organizational Restructuring: A Solomon Four-Group Study. Group & Organization Management, 28(3), 416–439. https://doi.org/10.1177/1059601102250825

Rizov, M., & Croucher, R. (2009). Human resource management and performance in European firms. Cambridge Journal of Economics, 33(2), 253–272. https://doi.org/10.1093/cje/ben037

Rizzo, J. R., House, R. J., & Lirtzman, S. I. (1970). Role Conflict and Ambiguity in Complex Organizations. Administrative Science Quarterly, 15(2), 150–163. https://doi.org/10.2307/2391486

Saks, A. M., Uggerslev, K. L., & Fassina, N. E. (2007). Socialization tactics and newcomer adjustment: A meta-analytic review and test of a model. Journal of Vocational Behavior, 70(3), 413–446. https://doi.org/10.1016/j.jvb.2006.12.004

Semmer, N. K. (2000). Control at work: Issues of specificity, generality, and legitimacy. In W. J. Perrig & A. Grob (Eds.), Control of human behavior, mental processes, and consciousness: Essays in honor of the 60th birthday of August Flammer (pp. 555–574). Mahwah, NJ, US:

Lawrence Erlbaum Associates Publishers.

Serbanica, C., & Constantin, D.-L. (2017). Sustainable cities in central and eastern European countries. Moving towards smart specialization. Habitat International. https://doi.org/10.1016/j.habitatint.2017.03.005

Sergeant, A., & Frenkel, S. (2000). When Do Customer Contact Employees Satisfy Customers? Journal of Service Research, 3(1), 18–34. https://doi.org/10.1177/109467050031002

Singh, J. (1993). Boundary Role Ambiguity: Facets, Determinants, and Impacts. Journal of Marketing, 57(2), 11–31. https://doi.org/10.2307/1252024

Singh, J. (1998). Striking a Balance in Boundary-Spanning Positions: An Investigation of Some Unconventional Influences of Role Stressors and Job Characteristics on Job Outcomes of Salespeople. Journal of Marketing, 62(3), 69–86. https://doi.org/10.2307/1251744

Sparrowe, R. T., Soetjipto, B. W., & Kraimer, M. L. (2006). Do Leaders’ Influence Tactics Relate to Members’ Helping Behavior? It Depends on the Quality of the Relationship. The Academy of Management Journal, 49(6), 1194–1208. https://doi.org/10.2307/20159827

Spector, P. E. (1997). Job satisfaction: application, assessment, cause, and consequences. Thousand Oaks, Calif: Sage Publications.

Steers, R. M. (1977). Antecedents and Outcomes of Organizational Commitment. Administrative Science Quarterly, 22(1), 46–56. https://doi.org/10.2307/2391745

Teas, R. K. (1983). Supervisory Behavior, Role Stress, and the Job Satisfaction of Industrial Salespeople. Journal of Marketing Research, 20(1), 84–91. https://doi.org/10.2307/3151415

Teas, R. K., Wacker, J. G., & Hughes, R. E. (1979). A Path Analysis of Causes and Consequences of Salespeople’s Perceptions of Role Clarity. Journal of Marketing Research, 16(3), 355–369. https://doi.org/10.2307/3150710

Theriou, G. N., & Chatzoglou, P. D. (2009). Exploring the best HRM practices‐performance relationship: an empirical approach. Journal of Workplace Learning, 21(8), 614–646. https://doi.org/10.1108/13665620910996179

Vroom, V. H. (1959). Some personality determinants of the effects of participation. The Journal of Abnormal and Social Psychology, 59(3), 322–327. https://doi.org/10.1037/h0049057

Wang, Y. (2004). Observations on the organizational commitment of Chinese employees: comparative studies of state-owned enterprises and foreign-invested enterprises. The International Journal of Human Resource Management, 15(4–5), 649–669. https://doi.org/10.1080/0958519042000192889

Williams, M. L., McDaniel, M. A., & Nguyen, N. T. (2006). A meta-analysis of the antecedents and consequences of pay level satisfaction. The Journal of Applied Psychology, 91(2), 392–413. https://doi.org/10.1037/0021-9010.91.2.392

Wright, P., & Gardner, T. (2000). Theoretical and Empirical Challenges in Studying: The HR Practice - Firm Performance Relationship. CAHRS Working Paper Series. Retrieved from http://digitalcommons.ilr.cornell.edu/cahrswp/83

Wright, P. M., & McMahan, G. C. (1992). Theoretical Perspectives for Strategic Human Resource Management. Journal of Management, 18(2), 295–320. https://doi.org/10.1177/014920639201800205

Youndt, M. A., Snell, S. A., Dean, J. W., & Lepak, D. P. (1996). Human Resource Management, Manufacturing Strategy, and Firm Performance. The Academy of Management Journal, 39(4), 836–866. https://doi.org/10.2307/256714

Young, B. S., Worchel, S., & Woehr, D. J. (1998). Organizational Commitment among Public Service Employees. Public Personnel Management, 27(3), 339–348. https://doi.org/10.1177/009102609802700304

Zaniboni, S., Truxillo, D. M., & Fraccaroli, F. (2013). Differential effects of task variety and skill variety on burnout and turnover intentions for older and younger workers. European Journal of Work and Organizational Psychology, 22(3), 306–317. https://doi.org/10.1080/1359432X.2013.782288

Zheng, C., Morrison, M., & O’Neill, G. (2006). An empirical study of high performance HRM practices in Chinese SMEs. The International Journal of Human Resource Management, 17(10), 1772–1803. https://doi.org/10.1080/09585190600965282




DOI: https://doi.org/10.5296/ijhrs.v7i3.11454

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

Copyright © Macrothink Institute   ISSN 2162-3058

'Macrothink Institute' is a trademark of Macrothink Institute, Inc.