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Mediating Effect of Job Satisfaction in the Relationship between Reward System and Employees’ Work Performance of Commercial Banks in Kenya

Author

Listed:
  • Victor Ondolla Jesse

    (School of Business and Economics, Daystar University, Kenya)

  • Charles Katua Kithandi

    (Daystar University, Kenya)

Abstract

Employee work performance is the key driver to organizational success. An organization with a poor employee reward system is likely to be on a pathway of organizational failure. The purpose of this study is to examine the mediating effect of job satisfaction in the relationship between reward system and employees’ work performance. The target population was 11 banks listed in the Nairobi Securities Exchange. A random sampling method integrating qualitative and quantitative design methods was employed in this study. A random sample of 383 employees was selected from the 11 banks. The study used a Partial Least Squares structural equation modeling (PLS-SEM) to assess the magnitude and relationship and thus come up with a finding of the relationship of independent and dependent variables. Using bootstrapping to evaluate indirect effects, the results showed significant mediation: β = 0.711, t = 7.663, p

Suggested Citation

  • Victor Ondolla Jesse & Charles Katua Kithandi, 2024. "Mediating Effect of Job Satisfaction in the Relationship between Reward System and Employees’ Work Performance of Commercial Banks in Kenya," East African Finance Journal, East African Finance Journal, vol. 3(2).
    • Handle: RePEc:cwk:eafjke:2024-20
    DOI: 10.59413/eafj/v3.i2.15
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    References listed on IDEAS

    as
    1. Hareth Abd Al-Wareth Alrazehi & Noor Aina Amirah & Ali Salman Mohammed Emam, 2021. "The Mediation Effect of Job Satisfaction between Reward System and Training and Development on Employee Retention in Yemen’s Banking Sector," International Journal of Innovative Research and Scientific Studies, Innovative Research Publishing, vol. 4(4), pages 215-228.
    2. Gildas Moukouyou-Kouaka & Olawumi Dele Awolusi, 2020. "Factors Affecting the Performance of Public Sector Practitioners in the Republic of Congo," Information Management and Business Review, AMH International, vol. 12(2), pages 42-61.
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