The Impact of Employee Welfare on Organizational Productivity Considering the Mediating Role of Knowledge Management in the Human Resources Sector of Iran's Oil Industry

Purpose: Today, productivity as a continuous process provides the power and ability necessary to solve many problems and studies the existing inadequacies in the country such as low profitability, increased waste, inability to compete, lack of maximum utilization of production capacity and generally lack of proper understanding of a system. Governments and companies try to get as close as possible to these indicators by using appropriate techniques and methods. Factors such as employee training and employment, multi-skill training programs, employee motivation, job satisfaction, bonuses paid to employees and organizational culture are effective in increasing employee productivity. On the other hand, according to some researchers, knowledge management is known as a strategic lever for improving organizational productivity. Knowledge management is a set of processes for identifying, storing, sharing, and utilizing the organization's valuable knowledge. Empirical studies show that employees who enjoy a higher level of well-being are more likely to participate in knowledge sharing and creation processes, which can improve organizational performance. In the oil industry, the nature of its activities is often based on specialized knowledge and technical skills, the importance of knowledge management for optimizing human resources and large volumes of data and work experience is particularly evident. On the other hand, ignoring employee well-being can lead to reduced motivation, inefficient knowledge management processes, and consequently a decline in organizational productivity. Organizations that make meaningful investments in the area of human resource well-being usually enjoy a higher level of motivation, productivity, and competitive advantage. In high-risk and complex industries such as the oil industry, the importance of employee well-being is doubly important. This industry is inherently tied to difficult working conditions, environmental pressures, technical complexities, and high productivity requirements. In such environments, improving well-being can increase job satisfaction and work output in addition to reducing job stress and physical and psychological pressures. The technical knowledge of experienced and sometimes retired employees in the oil industry is a valuable resource that must be preserved and utilized. If employees feel a sense of well-being and value, they are more likely to share their knowledge and experiences with others. Indeed, by improving the overall welfare of employees within the organization, and through identifying and preserving knowledge, acquiring, transferring, sharing, and applying it, organizational productivity will subsequently be enhanced. The present study was conducted under the title "The Effect of Employee welfare on Organizational Productivity Components Considering the Mediating Role of Knowledge Management in the Oil Industry". This study sought to answer the general question: Does employee welfare have an effect on organizational productivity components (including motivation, feedback, organizational support, and social status) in the oil industry? Does knowledge management play a mediating role in the relationship between employee welfare and organizational productivity components?
Methodology: The present study is an applied research in terms of its purpose and uses a descriptive-survey method in terms of data collection. In this study, structural equation modeling analysis using the PLS method in SmartPLS4 software was used to test the hypotheses in the inferential statistics section. The data collection tool was standard questionnaires, which were used to examine the validity of the questionnaire questions using convergent validity and divergent validity indices, and to examine the reliability using Cronbach's alpha and composite reliability indices. The statistical population of this research consisted of 265 experts and human resource managers of the Ministry of Petroleum in Tehran. The sample size was calculated as 157 using Cochran's formula.
Results: The findings of the research based on the fitted structural equation model in the case of significant values at the 95% confidence level showed that employee well-being with significant numbers of 36.93, 5.27, 2.74, 2.23 has a direct and positive effect on organizational productivity components (including motivation, feedback, organizational support and social status) in the oil industry. The results also showed that knowledge management with significant numbers of 4.85, 4.82, 2.11, 5.39 plays a mediating role in the relationship between employee well-being and organizational productivity components, meaning that improving employee well-being can lead to increased productivity if knowledge management is improved.
Discussion: The findings reveal that employee welfare has a significant direct positive impact on all key components of organizational productivity (motivation, feedback, organizational support, and social status) in Iran’s oil industry, with the strongest effect observed on employee motivation. More importantly, knowledge management plays a strong and significant mediating role in this relationship. When employees experience higher levels of well-being, they are more willing to share and apply their knowledge, which in turn enhances organizational productivity.
In the high-risk, knowledge-intensive oil sector, employee welfare and knowledge management function as two sides of the same coin. Simultaneous investment in both creates a virtuous cycle that not only boosts productivity but also fosters a healthier, more engaged, and sustainable workforce. This study is among the first to empirically examine the mediating role of knowledge management between employee welfare and organizational productivity in Iran’s oil industry, highlighting that balanced attention to “people” and “knowledge” is essential for achieving sustainable performance in this strategic sector.
Conclusion: Oil industry managers should adopt policies that promote both employee well-being and knowledge management simultaneously, and subsequently increase employee satisfaction and engagement, and organizational productivity. This study is the first to focus on the importance of the relationship between employee well-being and organizational productivity, considering the mediating role of knowledge management in the oil industry in a country.