Abstract
The current study seeks to analyze the impact of the tangible and intangible rewards on organizational effectiveness with the mediating role of organizational citizenship behavior. The study utilized a quantitative research design for that the data was collected using a structured questionnaire. The sample size was 342. The study framework had 4 constructs namely tangible rewards, intangible rewards, organizational citizenship behavior, and organizational effectiveness. Two of the variables (tangible and intangible rewards) were independent variables, organizational effectiveness was dependent variable and organizational citizenship behavior was mediating variables. All the latent construct was measured using multi items based on 5 point Likert scales from 1 strongly disagree to 5 strongly disagree. The data collection instrument was developed referring to past researches done on the seminal researches. Structural Equation Modelling was used to analyze the data. The results suggested the significant relationship of tangible and intangible rewards with organizational effectiveness directly and through the mediation of organizational citizenship behavior.
Highlights
Organizations tend to compete on the basis of their human resources, ; currently, human resource is considered as the most effective and important resource of the organization that enables them to gain a competitive advantage (Alsakarneh et al, 2018)
; it is highly effective for the employees to get appreciated and rewards are being distributed on the basis of their performance
Tangible rewards are being used at a certain level for the employees to increase their motivation and loyalty as well, ; it is difficult to say that tangible rewards are directly linked with organizational effectiveness
Summary
Organizations tend to compete on the basis of their human resources, ; currently, human resource is considered as the most effective and important resource of the organization that enables them to gain a competitive advantage (Alsakarneh et al, 2018). ; there are different methods and measures used in order to analyse the performance of the employees which able to offer rewards whether they are tangible or intangible (Yousaf et al, 2015) It is being done in the private or public sector as well because the main purpose of these features is to motivate the employees that enable them to contribute towards organizational effectiveness and efficiency as well. For that purpose; it is required to develop the effective reward system that illustrates organizational mindset and enable their employees to facilitate learning and productivity In this way; performance appraisal or evaluation system should be effective key success factor along with the performance indicators should be fine adequately so the employees are able to meet the expectations and they should be aware of the organization strategy regarding the rewards. This will help the corporate sector of Iraq to use the findings of the study and bring the effective reward system in the organization to increase its effectiveness
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