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


  • Muhammad Adnan Azteca University (UA), Mexico & Universidad Central de Nicaragua, Republic of Nicaragua (North America) https://orcid.org/0000-0001-6822-0841
  • Samia Zarrar National College of Business Administration and Economics (NCBA&E) Lahore, Multan Sub-ampus
  • Kamran Zaffar National College of Business Administration and Economics (NCBA&E) Lahore, Multan Sub-ampus




Employee Empowerment, Employee Compensation, Employee Accountability, Employee Job Performance, FMCG


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. The 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.


Abou Elnaga, A., & Imran, A. (2014). The impact of employee empowerment on job satisfaction theoretical study. American Journal of Research Communication, 2(1), 13-26.

AbRahman, N. A., Omar, N., Rashid, N. M. N. N. M., & Ramli, A. (2016). Improving employees accountability and firm performance through management accounting practices. Procedia Economics and Finance, 35, 92-98.

Akram, M. S., Khan, A. S., Shah, D. S. M. A., & Khan, D. J. A. (2018). The Effect of Training and Compensation on Job Performance; Accessing the Moderating Role of Motivation: A Case Study of Public Sector of Pakistan. Journal of Business and Tourism, 4(2), 39-51.

Akter, N., & Husain, M. M. (2016). Effect of compensation on job performance: An empirical study. International Journal of Engineering Technology, Management and Applied Sciences, 4(8), 103-116.

Allen, D. G., Bryant, P. C., & Vardaman, J. M. (2010). Retaining talent: Replacing misconceptions with evidence-based strategies. Academy of management Perspectives, 24(2), 48-64.

Al-Makhadmah, I. M., Al Najdawi, B. M., & Al-Muala, I. M. (2020). Impact of Psychological Empowerment on the Performance of Employees in the Four-And Five-Star Hotel Sector in the Dead Sea–Jordan Tourist Area. GeoJournal of Tourism and Geosites, 30(Suppl. 2), 896-904.

Arneson, H., & Ekberg, K. (2005). Evaluation of empowerment processes in a workplace health promotion intervention based on learning in Sweden. Health promotion international, 20(4), 351-359.

Arnolds, C. A., & Boshoff, C. (2002). Compensation, esteem valence and job performance: an empirical assessment of Alderfer's ERG theory. International Journal of Human Resource Management, 13(4), 697-719.

Arslan, M., & Zaman, R., (2014). Effect of empowerment on job performance: A study of software sector of Pakistan. Research on Humanities and Social Sciences, 4(27), 23-27.

Bajor, J. K., & Baltes, B. B. (2003). The relationship between selection optimization with compensation, conscientiousness, motivation, and performance. Journal of Vocational Behavior, 63(3), 347-367.

Bohlander, G., & Snell, S. (2006). Managing human resources. Cengage Learning.

Bose, I., & Emirates, U. A. (2018). Employee empowerment and employee performance: An empirical study on selected banks in UAE. Journal of Applied Management and Investments, 7(2), 71-82.

Brown, M. P., Sturman, M. C., & Simmering, M. J. (2003). Compensation policy and organizational performance: The efficiency, operational, and financial implications of pay levels and pay structure. Academy of management Journal, 46(6), 752-762.

Dessler, G. (2011). Fundamentals of human resource management. Pearson Higher Ed.

Dulebohn, H. J., Ferris, R. G., & Stood, T. J. (1995). Handbook of human resource management.

Feraro-Banta, L., & Shaikh, S. (2017). Relation of compensation and benefits on employees’ performance: A study of audit firms in Bahrain. International Advanced Research Journal in Science, Engineering and Technology, 4(5), 175-183.

Ferris, G. R., Mitchell, T. R., Canavan, P. J., Frink, D. D., & Hopper, H. (1995). Accountability in human resource systems. Handbook of human resource management, 175196.

Fornell, C.G. and Larcker, D.F. (1981), “Evaluating structural equation models with unobservable variables and measurement error”, Journal of Marketing Research, Vol. 18 No. 1, pp. 39-50.

Geralyn M. F. (2007). Human Resource Management Basic: Small verses Large Firm Practices. Virginia Hernandez. The University of Texas of Premium Basis.

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing theory and Practice, 19(2), 139-152.

Hall, A. T., Frink, D. D., Ferris, G. R., Hochwarter, W. A., Kacmar, C. J., & Bowen, M. G. (2003). Accountability in human resources management. New directions in human resource management, 29-63.

Hameed, A., Ramzan, M., & Zubair, H. M. K. (2014). Impact of compensation on employee performance (empirical evidence from banking sector of Pakistan). International journal of business and social science, 5(2).

Han, Y., & Hong, S. (2019). The impact of accountability on organizational performance in the US federal government: The moderating role of autonomy. Review of Public Personnel Administration, 39(1), 3-23.

Hanaysha, J. (2016). Examining the effects of employee empowerment, teamwork, and employee training on organizational commitment. Procedia-Social and Behavioral Sciences, 229(298-306), 298-306.

Hong, S. (2017). What are the areas of competence for central and local governments? Accountability mechanisms in multi-level governance. Journal of Public Administration Research and Theory, 27(1), 120-134.

Iqbal, N., Ahmad, N., & Javaid, K. (2013). Impact of Employee Empowerment on Employee Performance in the context of Banking Sector of Pakistan. pinnacle business management.

Ivancevich, J. M. W. F., & William, F. Glueck.(1989). Foundations of Personnel/Human Management, 21397, 409.

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.

Kamunge, M. S., Njeru, A., & Tirimba, O. I. (2014). Factors affecting the performance of small and micro enterprises in Limuru Town Market of Kiambu County, Kenya. International Journal of Scientific and Research Publications, 4(12), 1-20.

Kroon, M. B., Van Kreveld, D., & Rabbie, J. M. (1992). Group versus individual decision making: Effects of accountability and gender on groupthink. Small Group Research, 23(4), 427-458.

Lerner, J. S., & Tetlock, P. E. (1999). Accounting for the effects of accountability. Psychological bulletin, 125(2), 255.

Mehran, H. (1995). Executive compensation structure, ownership, and firm performance. Journal of financial economics, 38(2), 163-184.

Mohapatra, I., & Sundaray, B. K. (2018, March). Impact of employee empowerment on employee performance. In International Journal of Advanced Technology and Engineering Research, National Conference on Recent Trends in Science, Technology and Management (Vol. 1, pp. 98-102).

Nadeem, M. T., Zia-uD-din, M., Riaz, W., Shafique, M. Z., & Sattar, A. (2018). The effects of employees empowerment on organizational performance: a case of hotel industry in Pakistan. International Journal of African and Asian Studies, 47, 89-94.

Okeke, M. N., & Ikechukwu, I. A. (2019). Compensation Management and Employee Performance in Nigeria. International Journal of Academic Research in Business and Social Sciences, 9(2).

Radin, B. A., Dubnick, M. J., & Frederickson, H. G. (2011). Accountable Governance: Problems and Promises.

Rajalingam, Y., Jauhar, J., & Bashawir, A. G. (2015). A study on the impact of empowerment on employee performance: The mediating role of appraisal. International Journal of Liberal Arts and Social Science, 3(1), 92-104.

Richard, T. and Morrison, M. (2009), Challenges of performance management in contemporary scenario, Journal of Business and Psychology, 39(2), 56-71.

Shalley, C. E., & Gilson, L. L. (2004). What leaders need to know: A review of social and contextual factors that can foster or hinder creativity. The leadership quarterly, 15(1), 33-53.

Shields, J., Brown, M., Kaine, S., & North-Samardzic, A. (2015). Managing employee performance & reward: Concepts, practices, strategies. Cambridge University Press.

Tetlock, P. E. (1985). Accountability: A social check on the fundamental attribution error. Social psychology quarterly, 227-236.

Tetteh–Annor, L. (2014). Effect of compensation management on employee performance at the St. Michael’s Catholic Hospital, Pramso (Doctoral dissertation).

Yilmaz, O. D. (2015). Revisiting the impact of perceived empowerment on job performance: Results from front-line employees. Turizam, 19(1), 34-46.




How to Cite

Adnan, M., Zarrar, S., & Zaffar, K. (2021). Employee Empowerment and Compensation as A Consequence on Employee Job Performance with the Moderating Role of Employee Accountability. IRASD Journal of Management, 3(3), 218–232. https://doi.org/10.52131/jom.2021.0303.0040