Factors determinants of employee performance in Malaysian zakat institution on organizational sustainability: an empirical study

This study aims to explore the factors affecting employee performance at (LZNK), a zakat institution in Malaysia, in terms of leadership style, motivation, compensation, work environment, and job satisfaction. Using a quantitative research design, data was captured from 97 employees through structured questionnaires and analysed using descriptive statistics, reliability analysis, correlational analysis, and multiple regression analysis. The findings indicated that motivation has a positive and significant impact on employee performance (β = 0.654, p < 0.05), demonstrating its importance for productivity enhancement. On the other hand, leadership style (β = -0.558, p < 0.05) and work environment (β = -0.428, p < 0.05) had significant negative influences, which implies that there are some deficiencies in the leadership styles and the working environment, which affects the outcomes. In addition, compensation and job satisfaction also had no significant results (p > 0.05). Altogether, these major factors had a moderate effect on performance (R² = 0.323, p < 0.05). These results also contradict the HR assumptions that motivation and rewards beyond financial remuneration are a lower priority. This study fills a gap in the literature in organisational behaviour with respect to human resource management using Islamic ethics by proposing adequate leadership, motivation, and good working conditions towards better employee performance. Some tactical recommendations are strengthening participative leadership, introducing non-financial rewards, and changing workplace policy to meet employee and organisational needs. This study offers practical guidance to Zakat institutions and faith-based organisations that seek to improve human resource management in socially responsible environments