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The Mediating Role of Job Satisfaction in the Relationship between Compensation and Work Environment on Performance

Author

Listed:
  • Ilzar Daud

    (Management Study Program, Faculty of Economics and Business, Universitas Tanjungpura, 78124, Pontianak, West Kalimantan, Indonesia Author-2-Name: Nur Afifah Author-2-Workplace-Name: Management Study Program, Faculty of Economics and Business, Universitas Tanjungpura, 78124, Pontianak, West Kalimantan, Indonesia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

Objective - The purpose of this study is to identify the relationship between compensation and work environment on performance through job satisfaction. Methodology/Technique - The population in this study is 150 employees from a State-Owned Bank. The sampling method uses census techniques so that the number of samples used is 150 employees. The research data was collected using a questionnaire, which is then analyzed using a path analysis technique (SPSS software) to examine the relationships among the constructs, which are: compensation, work environment, job satisfaction and performance. Findings - The results of this study indicate that compensation has a significant relationship between job satisfaction, and the work environment has a significant relationship on job satisfaction. The results also prove that compensation has no relationship on performance, work environment has a significant relationship on performance, and job satisfaction has a significant relationship on performance. The results of this study also indicate that as an indirect effect, compensation has a significant relationship on performance through job satisfaction and the work environment has a significant relationship on performance through job satisfaction. Novelty - Previous studies have been carried out in many western countries, raising doubts about generalizations in the same research results in developing countries such as Indonesia. Therefore, the novelty in this study is carried out in the context of developing countries, especially in State-Owned Banks in West Kalimantan, Indonesia. Type of Paper - Empirical.

Suggested Citation

  • Ilzar Daud, 2021. "The Mediating Role of Job Satisfaction in the Relationship between Compensation and Work Environment on Performance," GATR Journals jmmr273, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jmmr273
    DOI: https://doi.org/10.35609/jmmr.2021.6.2(2)
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    References listed on IDEAS

    as
    1. Masooma Javed & Rifat Balouch & Fatima Hassan, 2014. "Determinants of Job Satisfaction and its impact on Employee performance and turnover intentions," International Journal of Learning and Development, Macrothink Institute, vol. 4(2), pages 120-140, June.
    2. Ida Irdawaty Ibrahim & Ali Boerhaneoddin, 2010. "Is Job Satisfaction Mediating The Relationship Between Compensation Structure And Organisational Commitment? A Study In The Malaysian Power Utility," Journal of Global Business and Economics, Global Research Agency, vol. 1(1), pages 43-61, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Compensation; Work Environment; Job Satisfaction; Performance;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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