The Influence of Reward Management on Employee Performance through the Mediating Role of Job Satisfaction: Evidence from the Commercial Banking Sector in Palestine رسالة ماجستير

Abstract

This study investigates the direct effects of reward management (RM)—with a focus on intrinsic rewards (IR) and extrinsic rewards (ER)—on employee performance (EP) and job satisfaction (JS), as well as the mediating role of JS in the relationship between RM and EP within the Palestinian commercial banking sector. The study employed a quantitative, cross-sectional, correlational research design. Data were collected during 2025 using a structured questionnaire distributed to employees, section heads, and department managers in Palestinian commercial banks. A total of 364 valid responses were obtained and included in the analysis. The proposed hypotheses were tested using SmartPLS (version 4). The findings indicate that RM positively influences EP and JS. IR were found to have a strong positive effect on both EP and JS. While ER did not directly influence EP, they had a positive effect on JS. In addition, JS was found to positively affect EP and to mediate the relationship between RM and EP. Overall, all proposed hypotheses were supported except the direct relationship between ER and EP. This study contributes to both theory and practice by reinforcing the relevance of motivation and RM theories in explaining how IR and ER influence EP through JS in the commercial banking sector. Practically, the findings indicate that strengthening IR practices—such as autonomy and professional development—enhances JS and EP, while ER should be implemented in a fair, transparent manner and designed to complement IR.