Designing a Compensation Model Based on a Commitment-Oriented Strategy in Iranian Government Organizations

Marzieh Sadat  Sadri Najaf Abadi; Karamollah Danesh Fard; Shahla  Sohrabi

Authors

Marzieh Sadat Sadri Najaf Abadi Department of Public Administration, SR.C., Islamic Azad University, Tehran, Iran Author https://orcid.org/0009-0008-8502-7427
Karamollah Danesh Fard Department of Public Administration, SR.C., Islamic Azad University, Tehran, Iran https://orcid.org/0000-0003-0344-9279
Shahla Sohrabi Department of Public Administration, SR.C., Islamic Azad University, Tehran, Iran Author https://orcid.org/0000-0002-0840-8823

Keywords:

Compensation, Commitment, Oriented Strategy, Government Organizations, Human Resource Management, Organizational Commitment, Mixed Methods, PLS, SEM

Abstract

The objective of this study was to design and empirically validate a comprehensive compensation model based on a commitment-oriented strategy for Iranian government organizations. This applied-developmental study employed an exploratory sequential mixed-methods design grounded in pragmatism. In the qualitative phase, 16 university faculty members and experienced public-sector managers with expertise in human resource management and compensation were selected purposively and interviewed using semi-structured interviews until theoretical saturation was achieved. The interview data were analyzed through thematic analysis and thematic-network procedures to identify basic, organizing, and global themes. In the quantitative phase, the statistical population consisted of 600 deputies and managers of the Tehran Province Agricultural Jihad Organization, from whom 234 participants were selected using Cochran’s formula and simple random sampling. A researcher-developed 51-item questionnaire derived from the qualitative findings was used. Content validity, construct validity, Cronbach’s alpha, composite reliability, convergent validity, and discriminant validity were assessed. Data were analyzed using SPSS and SmartPLS through exploratory factor analysis, confirmatory factor analysis, and partial least squares structural equation modeling. The qualitative phase yielded seven dimensions, 17 components, and 51 indicators. Exploratory factor analysis confirmed the proposed component structure, with explained variance ranging from 61.57% to 68.06%. In the confirmatory model, all factor loadings exceeded .50 and all t-values exceeded 1.96. The seven dimensions were significantly associated with commitment-oriented compensation: work environment (β=.891), professional development and growth (β=.865), spiritual and ethical values (β=.850), technology- and transformation-oriented compensation (β=.824), employee material benefits (β=.807), psychological compensation (β=.795), and continuous learning (β=.790). Cronbach’s alpha ranged from .73 to .84, composite reliability from .71 to .90, and AVE from .52 to .54. R² values ranged from .62 to .79, and the overall GOF was .60, indicating strong model fit. The findings indicate that commitment-oriented compensation in Iranian government organizations is a multidimensional system that extends beyond financial rewards and integrates developmental, ethical, environmental, psychological, technological, and learning-related mechanisms; therefore, public organizations should design compensation systems as strategic and adaptive architectures for strengthening long-term employee commitment.

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