HOW EMPLOYEE’S WORK ATTITUDE MEDIATE IN BETWEEN EMPLOYEE REWARD SYSTEM AND PERFORMANCE: IN CASE OF ETHIOPIAN TEXTILE AND CLOTH INDUSTRIES EMPLOYEE’S WORK ATTITUDE MEDIATE IN BETWEEN EMPLOYEE REWARD SYSTEM AND PERFORMANCE

Abstract

The present study conducted to check the mediation effect of employee's work attitude
between reward system and organizational performance in textile and cloth sector of Ethiopia.
The researchers employed quantitative explanatory research design. In addition to this,
instrument used to collect data was self-administered questionnaire. Data was collected from
industrial park employees and HR mangers. Researchers deployed multiple- stage sampling. A
field survey was administered to get data from 420 employees working in textile and cloth
industries located in the industrial park. SPSS and AMOS version 26 was used for data analysis.
Mahalanobis' distance was used for outlier’s detection and data imputation. The researchers
deployed Kaiser-Meyer-Olkin test to check sphericity of the data and manifested that KMO and
p-value were 0.784 0.000 respectively, that indicated the data adequacy. Factor loading for all
used items founded was more than 0.6 which confirmed the factors for further analysis. All
observed variable able to explained the behavior of dependent variable by 66.5% because
TVE=66.5 with it all observed items eigen value more than 1. During SEM researchers founded
the model fitness with CMIN/DF=3.080 with p-value = 0.482, and all fitness indices like TLI,
GFI, PNFI etc.…more than 0.9 which were in acceptable threshold limit. Total effect indicated
the partial mediation of employee work attitude in between reward and organization
performance in the study area. Therefore, policy makers should focus more on employee work
attitude while implementing HRM practices to optimize the performance of an organization.