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Employee Empowerment and Compensation as A Consequence on Employee Job Performance with the Moderating Role of Employee Accountability

Author

Listed:
  • Muhammad Adnan

    (Azteca University (UA), Mexico & Universidad Central de Nicaragua, Republic of Nicaragua (North America).)

  • Samia Zarrar

    (National College of Business Administration & Economics (NCBA&E) Lahore, Multan Sub-campus, Pakistan.)

  • Kamran Zafar

    (National College of Business Administration & Economics (NCBA&E) Lahore, Multan Sub-campus, Pakistan.)

Abstract

Using data from 200 employees of FMCG companies in Multan, this study aims to analyze the effect of Employee Empowerment and Employee Compensation on Employee Job Performance while moderating the role of Employee Accountability. Partial least square method is used to estimate the results. The results of PLS-SEM reveal that Employee Empowerment, Employee Compensation, and Employee Accountability are all positively and significantly related to Employee Job Performance. Employee Accountability was found to partially moderate the relationship between Employee Empowerment and Employee Compensation using moderated regression. It is recommended that, in order to improve employee job performance, the organization develop and implement strategies for providing appropriate compensation. After processing and analyzing information from the labor market and internal regulations of the company, there seems a need to modify an appraisal system in line with the specified compensation structure and other benefits.

Suggested Citation

  • Muhammad Adnan & Samia Zarrar & Kamran Zafar, 2021. "Employee Empowerment and Compensation as A Consequence on Employee Job Performance with the Moderating Role of Employee Accountability," iRASD Journal of Management, International Research Alliance for Sustainable Development (iRASD), vol. 3(3), pages 218-232, December.
    • Handle: RePEc:ani:irdjom:v:3:y:2021:i:3:p:218-232
    DOI: 10.52131/jom.2021.0303.0040
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    References listed on IDEAS

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    1. Indranil Bose, 2018. "Employee Empowerment and Employee Performance: An Empirical Study on Selected Banks in UAE," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(2), pages 71-82, May.
    2. Mehran, Hamid, 1995. "Executive compensation structure, ownership, and firm performance," Journal of Financial Economics, Elsevier, vol. 38(2), pages 163-184, June.
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