The Role of Organizational Structure in Explaining the Relationship Between Compensation and Administrative Health: A Quantitative Approach
Keywords:
Compensation for services, organizational structure, administrative health, meritocracyAbstract
This study aimed to examine the mediating role of organizational structure in the relationship between compensation and administrative health. This applied quantitative research employed a cross-sectional survey design. The population consisted of all employees of Kerman Agricultural Bank branches (590 individuals), and a sample of 386 participants was selected. Data were collected through standardized and researcher-made questionnaires and analyzed using SPSS 26 and Smart PLS 3. Reliability of the instruments was confirmed via Cronbach's alpha, and content validity ensured the instruments’ accuracy. Structural equation modeling was applied to assess relationships between variables. Results indicated that organizational structure plays a significant mediating role in enhancing the relationship between compensation and administrative health. Statistical indices, including factor loadings, R², Q², and Goodness-of-Fit (GOF), confirmed the strong fit of the model and the validity of constructs. Both financial and non-financial compensation directly influenced administrative health, and this effect was amplified through the mediating role of organizational structure. The findings suggest that attention to organizational structure and key components of compensation can positively impact administrative health in the banking sector. Managers can improve organizational performance and employee satisfaction by optimizing the compensation system and reinforcing the organizational structure.
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Copyright (c) 2025 Mahsa Shokohsaljughi (Author); Sanjar Salajeghe (Corresponding author); Zahra Anjomshoae (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
