The Impact of Material and Non-Material Rewards on Quality of Quality of Strategic Planning: The Mediating Role of Indivudal Factors in Libyan Technical Institutions

Abstract

Purpose: This paper aims to present an examination named as individual factors that affect the execution of the strategic plan for Libyan technical education institutions. The study has managed to accomplish the purpose of the research by implementing a quantitative methodology (descriptive empirical approach) and the questionnaires were used as a data collection tool. The model consists of two independent variables, one mediator and one dependent variable. The independent variables consist of material and non-material rewards while mediator is individual factors and the dependent variable comprise quality of strategic planning. Design/methodology/approach: The research analysis structure comprises of three exogenous variables: one mediator variable as ME and one endogenous variable. The exogenous variables comprise of human performance, individual productivity and leadership aptitudes, and the incentive system representing a reward system as an endogenous mediator. These named variables comprise the parameters that will take part of the implementing of the strategic quality plan. The total population of random samples of (290 individuals) with the role as senior department managers, middle department managers and directors of lower (executive) divisions were classified and specified. The statistical programs that were applied are (SPSS as well as SMART PLS) for the evaluations and scrutiny determinations. Findings: The findings have shown that material and non-material rewards have a significant and positive effect on the quality of Strategic Planning by institutions of technical education in Libya. This study obtained evidence throughout its course work that the individual competency, individual effectiveness and leadership skills had direct effect on Implementing the Strategic quality Plane. Furthermore, Individual competency and leadership skills had direct effects on reward system but Individual Effectiveness has no direct effect on Implementing the Strategic quality Plan. Furthermore, the results of the study reveal that material individual factors (individual competency, individual effectiveness, self-motivation) have a mediating influence on the relationship between material and non-material rewards and the quality of strategic planning. The findings similarly have shown that non-material rewards and individual factors have a significant and positive influence on the quality of strategic planning. Nevertheless, material rewards scheme has no directly significant effect on the quality of strategic planning (QSP). Practical implications: The results indicated that reward system has partial mediation on the relationship between competency, individual effectiveness and leadership skills and strategic quality plan implementation. The study will contribute to enhancing body of knowledge by proposing a research model for institutions of technical education, especially in Tripoli within Libya in general. Consequently, at the end of this study, we hope that the results will provide a way to stand as the basis for further research in this area or specifically on the subject. Originality/value: The paper has established its own originality and novelty analyzing the data statistically. This analysis has revealed that the reward system has managed to mediate successfully the relationship between the individual factors affecting the implementation of the quality strategic plan (individual competence, individual effectiveness and leadership skills).