The mediating effect of organizational justice on the relationship between compensation strategy and employee performance among academic staff in Iraqi universities

<p>This study aimed to investigate the effect of compensation strategy (CS) on employee</p><p>performance in Iraqi universities. In addition, the study identified the mediating role of</p><p>organisational justice (OJ) on the rela...

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Bibliographic Details
Main Author: Khudhair, Firas Salman
Format: thesis
Language:eng
Published: 2023
Subjects:
Online Access:https://ir.upsi.edu.my/detailsg.php?det=10497
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Summary:<p>This study aimed to investigate the effect of compensation strategy (CS) on employee</p><p>performance in Iraqi universities. In addition, the study identified the mediating role of</p><p>organisational justice (OJ) on the relationship between compensation strategy(CS) and</p><p>employee performance (EP). The population of this study comprised of 29,435</p><p>academic staff from 22 Iraqi universities in the middle and southern territory of Iraq. A</p><p>sample was selected by using stratified random sampling. A sample which include 400</p><p>academic staffs was selected by using stratified random sampling technique.. A</p><p>questionnaires was developed and verified for its construct validity and reliability based</p><p>on the arbitrators of six (6) experts. Structural Equation Modeling SEM analysis was</p><p>performed to answer research questions by testing the hypotheses. Findings revealed</p><p>that CS dimensions, namely financial compensation (=0.216, p<0.001) and nonfinancial</p><p>compensation (=0.512, p<0.001), had positive and significant effect on</p><p>employee performance. Meanwhile, organisational justice fully mediated the</p><p>relationship between compensation strategy and employee performance. The effect of</p><p>financial compensation on employee performance in the presence of a mediator</p><p>(organisational justice) was positive and significant (=0.110, p=0.003). The results</p><p>also indicated that the effect of non-financial compensation on employee performance</p><p>in the presence of a mediator (organisational justice) was positive and significant</p><p>(=0.288, p<0.001).. In conclusion, compensation strategy indicators play an important</p><p>role in increasing employees performance, and organisational justice serves as an</p><p>influent mediator in the relationship between compensation strategy and employee</p><p>performance. Clearly, these findings have the potential to guide the Iraqi universities to</p><p>focus on appropriate compensation strategy indicators that enhance its employees</p><p>performance.</p>