Mediating Role of Organizational Commitment: A Study of NADRA, Multan Region

Abstract

The purpose of this study is to investigate how employee compensation and job satisfaction influence employee performance. And more importantly, this study examines the mediating effect of the organizational commitment between employee compensation, job satisfaction and employee performance. Based on the prior studies conducted on employee compensation, job satisfaction, employee performance and organizational commitment, an integrated conceptual framework on employee compensation, job satisfaction, employee performance and organizational commitment was developed. The convenience sampling technique was employed in this study, and a sample drawn was consisted of 375 NADRA employees serving in Multan region. The sample was focused on the employees working in the NADRA Multan region. For more robust testing of the theory organizational commitment was included as mediating variable. For testing of mediation effect Process by Andrew F. Hayes was used with the assistance of SPSS version 23. Research findings revealed that the impacts of employee compensation and job satisfaction on employee performance are positive and significant. And organizational commitment as a mediating variable mediates the relationships between employee compensation, job satisfaction and employee performance. The mindsets of the today employees are changing, and they are more conscious about their relationships with the organizations, they love to share their good and bad experiences with the organizations. Today, it is very important for organizations to know the feelings of the employees about their organizations. This study suggests the organizations by tuning employee compensation, job satisfaction variables they may impact on the performance of the employees. And by introducing organizational commitment they may also change the relationships between employees and organization. Variables part of this study were not old constructs, but it is new for the graphical location where I conducted this study because there was no similar study available here. This study is only focused on NADRA Multan region, other geographical locations or industries may be used to more clearly understand the brand evangelism construct. Also, comparative studies can be performed for different organizational ladders and geographical locations.