Mediating Role of Job Satisfaction in Relationship of Compensation, Motivation and Organizational Commitment on Employee Performance in Batam Island, Indonesia

Abstract

Human resource is a creature that cannot escape from shortcomings in life for it often happens the problem of dissatisfaction, untruth, injustice, dishonesty, openness and indiscretions in the organization, such as a lack of concern for the organization to employees regarding compensation, motivation, organizational commitment, job satisfaction and employee performance. So, there needs to be a sense of concern in human resource management depth to the employees for all the activities of the organization to run smoothly. This study aimed to analyse the determination of compensation, motivation and organizational commitment to employee performance and job satisfaction as an intervening variable. The statistical method used to test the hypothesis is the Structural Equation Model with a total sample of 112 respondents. This study uses a questionnaire to measure the five-variable compensation, motivation, organizational commitment, job satisfaction and employee performance. The result of the analysis indicated that motivation has a significant positive effect on employee job performance. Also, this study found that job satisfaction mediates the relationship between compensation and organisational commitment to employee job performance. In conclusion, this study has successfully analysed the determinant factor of employee job performance and the role of job satisfaction in the relationship between compensation, motivation and organizational commitment to employee job performance.

Impact of HRM Practices on Employee Retention: Moderating Role of Job Satisfaction

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