The Mediating Effect of Reward Practice on the Relationship between Performance Management System and Job Satisfaction in Ethiopian Aviation University
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Date
2024-05-29
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A.A.U
Abstract
Reward practice plays a significant role in mediating the relationship between PMS and job
satisfaction. The study examines how reward practices mediate the connection between the
performance management system (PMS) and job satisfaction at Ethiopian Aviation University.
Using a simple random sampling method and 159 samples, it gathers information through a
closed-ended questionnaire in Google Forms. Applying structural equation modeling, the findings
indicate a strong correlation among all factors but lack any direct association between PMS and
job satisfaction. Improving reward practices positively affects job satisfaction and overall
performance. Therefore, the recommendation focuses on creating effective strategies based on
employee needs and alignment with performance objectives while integrating them into an efficient
PMS, ultimately contributing to enhanced job satisfaction and driving organizational
achievements. Fine-tuning PMS elements closely related to reward practices will optimize their
effectiveness, leading to improved employee morale, motivation, and retention. Continuous
assessment and modification of these efforts maintain relevance and high returns over time.
Customized incentives aligned with the organization's values reinforce positive outcomes and
increase job satisfaction levels.