The Role of Rewards and Job Satisfaction in Predicting Employee Commitment to Performance in Service Organizations

Abstract

Rewards and job satisfaction are often cited as critical processes in HRM. Nonetheless, research has not provided conclusive confirmation or disconfirmation on rewards and job satisfaction as influencing organizational performance. Thus, this study investigated the predictive roles of rewards and job satisfaction in employee's commitment to performance of service firms in sub-Saharan Africa. The study adapted a quantitative methodology by drawing a sample of respondents from two multinational service firms in Ghana. Both multiple regression and descriptive analysis were employed as the basis for the study investigation. Findings showed that rewards induced positive job satisfaction of employees. Additionally, findings showed that job satisfaction of employees stimulated employee commitment to performance. However, a very high level of employee dissatisfaction was recorded for employees pay and the amount of work they do which could negate their commitment to performing well in service firms. The study results add to the evidence that good HR practices influence business outcomes rather than the other way around. Thus, the contribution of this paper identifies the roles that management and organizational leadership can play in enhancing HRM and best practices of employee rewards and job satisfaction in the service industry.

Do high-performance work systems mediate the relationship between HR practices and employee performance in multinational corporations (MNCs) in developing economies?

“…Though, the classical and administrative theories have been criticized as being outdated, their recognition of rational structuring of jobs and human emotions as foundations of organizational performance are still relevant today and should be explored on how their relative importance varies under different circumstances (Hood, 2010). Most importantly, reward and compensation management are very much applicable in current contemporary management in developing economies (Abugre et al , 2018) and higher pay and rewards as strong determinants of job satisfaction in African countries (Abugre, 2014; Addis et al , 2018). Accordingly, Kuada (2010) emphasizes that African countries need to reflect on the contextual roots of their management practices and the manner in which their employees respond to these practices.…”