What motivates the most? Money or Empowerment: Mediating Role of Employee Commitment to Organizational Performance

Abstract

The study leads to understanding the relationship between human resources (HR) practices and outcomes to maintain organizational performance (OP) in Saudi Arabia. It concentrates on whether the HR practices quality overcome the quantity or not in the educational sectors. Convenience sampling was used to collect data using google forms based on A structured questionnaire. A total of 759 responses were successfully received and completed. The questionnaire consists of items measuring different aspects of HR practices, employee commitment, and organizational performance. The structural equation modelling (SEM) method used path modelling analysis using Smart Partial Least Squares (PLS) analytical software. The results show a reasonable fit between the data analysed and the proposed research model: SRMR (0.072), CR > 0.7, AVE > 0.5, Cronbach Alpha > 0.7, and VIF < 5. The study reveals that empowerment is a strong predictor of organizational performance than compensation. Moreover, employee commitment (mediate) partially contributes to organizational performance. HR practitioners may collect the employees’ data more regularly to learn if HR practices produce the desired commitment level to produce organizational performance. This study is limited to the Saudi universities and responders who participated in the questionnaire. Future studies should focus on other economic sectors to help generalize the research outcomes and validate the study’s hypothetical model.