Factors affecting work satisfaction and employee performance in automotive industrial chain

Purpose: This study aimed to analyze the determination of compensation, motivation and organizational commitment to employee performance and job satisfaction as an intervening variable. Design/methodology/approach: The statistical method used is the Structural Equation Model with a total sample of 112 respondents. This study uses a questionnaire to measure the factors affecting work satisfaction as compensation, motivation, organizational commitment, job satisfaction and employee performance. Findings: The results of this study found that there were positive and significant effects of compensation on the job satisfaction, and organizational commitment to job satisfaction as well as the effect of motivation on employee’s performance. Moreover, the insignificant effect is found in the effect of the job satisfaction on employee performance, the motivation on the job satisfaction, the compensation towards the employee performance and the organizational commitment on the employee performance. Mediation test proves that the job satisfaction is able to mediate the effects of compensation, motivation and organizational commitment on employee performance. Practical Implications: The results of this study can be the basis for the management of automotive product distributors in Batam City to increase compensation, and motivation for employees to improve job satisfaction and company performance. Originality/value: This study confirms the result that there are positive and significant effects of compensation on job satisfaction and organizational commitment to job satisfaction, and the effect of motivation on employee’s performance.peer-reviewe

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

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