The Impact of Incentives in institutional performance in Palestinian Local Authorities in Northern Governorates

Abstract

The aim of this study was to assess the impact of incentives on the dimensions of organizational performance (financial indicators, internal operational processes, customer satisfaction, growth, and innovation) of local Palestinian authorities in the northern districts of the West Bank. The study employed a descriptive analytical method and used a questionnaire as a data collection tool. The questionnaire was distributed to a stratified random sample of 346 employees working in local authorities in the northern districts of the West Bank (Nablus, Tulkarm, Jenin, Qalqilya, and Salfit) And (332) valid questionnaires were retrieved for analysis. The collected data were analyzed using structural equation modeling through the SmartPLS4 software. The results indicated that the level of application of both material and non-material internal and external incentive systems was high. Additionally, the organizational performance of these authorities was also high. Furthermore, the study revealed that incentives have an impact on organizational performance across its dimensions (financial indicators, internal operational processes, customer satisfaction, growth, and innovation) in Palestinian local authorities. The study recommended: 1. Implement salary increases and financial benefits for employees who excel in performing their tasks exceptionally. Provide opportunities for professional development and training to enhance their skills and increase their knowledge in their field of work. 2. Offer promotions and nominations to outstanding employees to increase their satisfaction and motivate them to improve their performance. 3. Provide opportunities for participation in institutional decision-making and improving internal processes, which enhances employees' sense of belonging and responsibility.