IMPACT OF EXTRINSIC REWARDS ON JOB OUTCOMES: ROLE OF EMPLOYEE WORK ENGAGEMENT AND PERCEIVED ORGANIZATIONAL SUPPORT:

Abstract

This study investigates the impact of extrinsic rewards on employee affective commitment and innovative work behavior (IWB). Moreover, unpack the role of employee work engagement as an intervening mechanism between extrinsic rewards and employee job outcomes (IWB & commitment). Besides, it investigates the moderating role of perceived organizational support (POS) for the associations of extrinsic rewards and employee work engagement. Data (N = 307) was collected from the higher education sector by using survey method, comprising of faculty members and administrative staff of Lahore, Pakistan. The findings revealed that extrinsic rewards enhanced the employee IWB and their affective commitment. The results show the mediational role of work engagement and the relationship of extrinsic rewards and employee work engagement is found to be more salient in high perceived organizational support as compared to lower one. The findings are discussed in terms of its implications for theory and practice at the end.