Incentive compensation, organizational commitment and managerial performance in zakat institutions / Namelfi Amran and Sofiah Md Auzair

This paper explores the relationship between incentive compensation and managerial performance in Malaysian Zakat Institution and the intervening effect of organizational commitment. Organizational commitment is operationalized as affective and normative commitment. Survey questionnaires were sent to middle managers of Malaysian Zakat Institution and 133 responses were received. Using path analysis, the results indicate that organizational commitment, specifically, affective commitment plays a mediating role on the relationship between incentive compensation and managerial performance. Findings of the study have implication in the design of incentive compensation systems for middle managers in Zakat Institutions.