Unveiling the Impact of Compensation Strategies and Awareness on Employee Performance in NGOs (In the Southwestern Region of Afghanistan)
DOI:
https://doi.org/10.58932/MULE0032Keywords:
Awareness, Direct compensation, Employees performance, indirect compensationAbstract
This study investigates, compensation management, awareness about that and impact of these on employee's performance among NGOs (southern zone of Afghanistan). In this study compensation is broken down into two parts direct and indirect compensation. It is a quantitative study using the primary information collected by questionnaires. 281 questionnaires were answered in different NGOs. Prior to the conduct of the entire study, pilot study was conducted to intensify and ensure whether the corresponding questionnaire is reliable. To Dispose of Items which do not induces reasonable variance in the Latent variable Confirmatory Factor analysis was implemented. For further analysis, descriptive and inferential statistics were carried out which included, correlation and regression analysis. The study's findings indicate that there is a strong and positive correlation between employee performance and awareness, employee performance and direct compensation is strong and positive, and employee performance and indirect compensation is weak and positive. Regression analysis yielded an adjusted R square of 0.43; translating this value into a percentage, it becomes 43%, indicating that 43% of the variation can be attributed to independent variables (awareness, direct compensation, and indirect compensation).
References
Akter, N., & Moazzam, H. M. (2016). Effect of compensation on job performance : An empirical study. International Journal of Engineering Technology, Management and Applied Sciences, 4(8), 103–116.
Ahmad, S., Qamar, A. J., Bhatti, M. A. A., & Bashir, U. (2023). Integrating Islamic Ethics with Modern Governance: A Comprehensive Framework for Accountability Across Religious, Social, and Economic Dimensions. Al-Irfan, 8(15), 51-79.
Alfiyah, N., & Riyanto, S. (2019). The effect of compensation , work environment and training on employees’ performance of politeknik LP3I Jakarta. International Journal of Innovative Science and Research Technology, 4(5), 947–955.
Aman-Ullah, A., Aziz, A., Ibrahim, H., Mehmood, W., & Aman-Ullah, A. (2023). The role of compensation in shaping employee’s behaviour: A mediation study through job satisfaction during the Covid-19 pandemic. Revista de Gestão, 30(2), 221-236. https://doi.org/10.1108/REGE-04-2021-0068
Ahmad, S., Ahmad, A., Shair, W., & Bhatti, M. A. A. (2022). Unlocking Pakistan's Youth Potential: A Comprehensive Analysis of Youth Development Indices and Strategic Alignment with the UN Sustainable Development Goals. Journal of Professional Research in Social Sciences, 9(2), 80-95.
Bhattacharyya, D. K. (2014). Compensation management (Second Ed.). England: Oxford University Press.
Brasilio, B. A., & Tridayanti, H. (2020). Effect of direct and indirect compensation on performance of employees PT. Terminal petikemas surabaya. Journal of World Conference (JWC), 2(2), 200–207. https://doi.org/10.29138/prd.v2i2.234
Bryman, A. (2012). Social research methods (Fourth ed.). England: Oxford University Press Inc.
Damayanthi, N. P. S., & Suastini, N. M. (2022). The effect of indirect compensation on employee performance : Case study at the Khayangan dreams villas , Bali, Indonesia. International Journal of Applied Research in Tourism and Hospitality, 1(2), 156–168.
Faqeerzai, M. (1401). Human resource management. Kybernetes. Faculty of Public Administration & Policy, Nangarhar. https://doi.org/10.1108/k.2000.06729cae.004
Faqeerzai, M. (2022). Human resource management (1st edi.). Faculty of Public Administration & Policy.
Garba, F. (2022). Effect of compensation on employee performance (A study of ministry of environment sokoto , Nigeria ). Kuwait Open Journal of Linguistics and Literature, 1, 1–5.
George, D. & Mallery, P. (2019). IBM SPSS statistics 25 step by step, a simple guide and reference (Sixteenth ed..). New York: Routledge.
Imron, A., Suyud, R., Syam, E., & Tengah, J. (2023). The effect of compensation and career evelopment through scientific publication motivation on the performance of homebase Islamic education lecturers at the university.
Edupedia: Jurnal Studi Pedidikan dan Pedagogi Islam, 7(2), 101–115. https://doi.org/10.35316/edupedia.v7i2.2434
Jean, K. N., Ngui, T. K., & Robert, A. (2017). Effect of compensation strategies on employee performance : A case study of mombasa cement limited. International Journal of Innovative Social Sciences & Humanities Research, 5(3), 25–42.
Jr Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling ( PLS-SEM ) using R. Springer Nature Switzerland AG. https://doi.org/10.1007/978-3-030-80519-7%0A©
Kadir, A., AlHosani, A. H., Ismail, F., & Sehan, N. (2019). The effect of compensation and benefits towards employee performance. Proceedings of the 1st Asian Conference on Humanities, Industry, and Technology for Society, 30-31. https://doi.org/10.4108/eai.30-7-2019.2287551
Keynan, W. H. (2018). Effect of compensation management practices on employee perfomance in Wajir county. Kenya, Warsame Hussein Keynan.
Kgoedi, T. & Pillay, A. S. (2018). The impact of compensation on the performance of employees at a bank in Mpumalanga. Journal of Management and Administration, 6, 135–162.
Larbi, T. – A. (2014a). Effect of compensation management on employee performance at the St. Michael’s Catholic Hospital, Pramso. Ghana, Managerial Science, Kwame Nkrumah University of Science and Technology, Kumasi, Ashanti Region.
Larbi, T. – A. (2014b). Effect of compensation management on employee performance at the St. Michael’s Catholic Hospital, Pramso. Ghana, School of Business, Knust.
Lestari, F., Haryono, S., Kurnia, M., & Rda, P. (2021). The effect of direct compensation and indirect compensation on job performance with job satisfaction as intervening variable in performance of temporary staff umy. International Journal of Business Marketing and Management, 5(3), 2456-4559.
Mishra, P., Shukla, B., & Sujatha, R. (2021). Human resource management for organisational change: Theoretical formulations. New York and London: Routledge.
Muslih, N. A. (2022). Research methodology (1st Edi.). Faculty of Public Administration & Policy.
Niar, I., & Andayani, N. R. (2019). The influence of direct compensation and indirect compensation toward Eeployee performance in PT trisun abadi mandiri. Advances in Social Science, Education and Humanities Research, 377, 75–79. https://doi.org/10.2991/icaess-19.2019.15
Oladejo, M. O., & Oluwaseun, Y. (2014). An assessment of the impact of compensation plan on workers performance of selected quoted food and beverages manufacturing companies in Nigeria. Journal of Business and Management, 16(7), 05-12.
Pattanayak, B. (2014). Human resource management (5th Edi.). Delhi, India: PHI Learning Private Limited.
Prasetyo, I., Endarti, E. W., Endarto, B., & Aliyyah, N. (2021). Effect of compensation and discipline on employee performance : A case study indonesia. Journal of Hunan University（Natural Sciences), 48, 278–298.
Qureshi, M. ., Ikram, S. H. ., & Bashir, U. . (2024). Role of Financial Innovation in Enhancing the Meezan Bank’s Market Share: Evaluating the Perception of Regional versus Branch Level Employees. Bulletin of Business and Economics (BBE), 13(2), 647-655.
Rafaqat, M. ., Azad, F. ., Ahmad, S. ., Aijaz, K. ., Ikram, S. H. ., Bashir, U. ., Bhatti, M. A. A. ., & Saeed, S. . (2024). Impact of Governance and Strategy Performance on Employer Branding. Research Journal for Societal Issues, 6(2), 852–867.
Sari, R. M., & Tridayanti, H. (2018). The influence of direct compensation and indirect compensation through work standard variables as intervening variables on employee performance at warung ayam goreng nelongso klampis, surabaya. IJIEEB : International Journal of Integrated Education, Engineering and Business, 1(2), 89–98. https://doi.org/10.29138/ijieeb.v1i2.763
Singh, P., & Tiwari, S. (2021). Impact of compensation on job satisfaction and employee performance during Covid-19 in IT sector. Turkish Online Journal of Qualitative Inquiry, 12(7), 7438-7459.
Wang, H., Zhao, S., Liu, Q., Wang, J., & Yuan, B. (2022). The association between financial incentives and job performance among primary care providers in six provinces of China. Risk Management and Healthcare Policy, 15, 2323-2334.
Yolande, M. K. (2024). The impact of compensation and internal equity on employee performance. Scientific Research Publishing, 13, 32–43. https://doi.org/10.4236/ojacct.2024.132003
