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Though public sector organisations have continuously borrowed human resource management practices from the private sector, there seems to be sparse evidence on the effectiveness of financial rewards for public sector employees, especially in developing countries where pay remains low. Therefore, the objective of this research is to test the effectiveness of financial rewards on the job performance of those working in the Maldives civil service from the perspective of a developing country where public sector pay, especially civil pay, remains comparatively low. Additionally, this study tested the mediating effect of organisational commitment on the relationship between financial rewards and job performance.

A cross-sectional study was conducted using quantitative design methodology, whereby data were collected from 341 employees working in the Maldives civil service and analysed using structural equation modelling.

The findings indicate that financial rewards negatively affect civil service employees’ job performance. However, financial rewards improve organisational commitment, which reduces the negative effects, although the effect sizes of the mediator are not very significant.

The results of this study present critical theoretical and practical contributions to public administration researchers on using financial incentives as a mechanism to boost job performance, particularly in developing countries, where salaries and other benefits remain low. Furthermore, it presents practical recommendations for managing employees in the Maldives and other countries, where the public sector is less developed and budget constraints remain a challenge.

Emerging research on public administration theory has highlighted the need for public sector managers to become better leaders by inspiring and motivating them to align themselves with their organisation's mission and vision. Therefore, transformational leadership has become increasingly appealing in public administration. This study investigates how transformational leadership affects the job performance of those in the Maldives' civil service. Furthermore, it tests the mediation effect of organisational commitment on the relationship between transformational leadership and the job performance of those working in the Maldives' civil service.

This study adopted a quantitative and cross-sectional design to collect data from 370 employees from different Maldives civil service offices. Data were collected through an online questionnaire, and structural equation modelling was used to test the hypotheses. The mediating effect was tested using bootstrapping.

The results reveal that transformational leadership did not significantly affect job performance. While a mediation effect was present, the effect size was within a small range.

The results of this study has important implications for the Maldives' civil service from a human resource management perspective and provides insights to policymakers on how to improve leadership in Maldives' civil service institutions. Furthermore, this study contributes significantly to the existing research in understanding the effect of transformational leadership on public sector organisations in Asia and from a developing country's perspective.