Effect of empowerment and compensation on performance of honorary employees mediated by organizational commitments

Abstract

The purpose of this study to analyze the influence of empowerment and compensation on employee performance is mediated by organizational commitment. The study was conducted by distributing questionnaires to a sample of 100 honorary employees in regional organizations in Denpasar using the proportionate random sampling method. The analytical method used is Partial Least Square (PLS) analysis. The results of PLS ​​analysis show that empowerment, compensation, and organizational commitment have a positive and significant direct effect on employee performance. Finally, organizational commitment has a positive and significant effect on mediating empowerment and compensation for employee performance. The results of this study imply that empowerment and compensation are important factors in improving employee performance. In addition, the mediating role of organizational commitment can also contribute to improving performance. The management of each regional apparatus organization in Denpasar City needs to pay attention to these matters so that organizational goals can be achieved.

Impact of Human Resource Management Practices on Enhancing Employee Performance in Jordan Islamic Bank

“…-Compensation is also one of the important HRM practices in organizations, which includes financial or non-financial rewards earned by employees as remuneration for their efforts and abilities given to the creation of goods and services for a business [54]. Effective compensation management is the process of developing and designing a payment system that ensures an organization's capacity to recruit and retain talented employees who are willing and able to perform effectively as needed to help the business accomplish its goals [24,50].…”