IS JOB SATISFACTION MEDIATING THE RELATIONSHIP BETWEEN COMPENSATION STRUCTURE AND ORGANISATIONAL COMMITMENT? A STUDY IN THE MALAYSIAN POWER UTILITY

Ida Irdawaty Ibrahim · Ali Boerhaneoddin

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Employee Performance and Management Job Satisfaction and Organizational Behavior Human Resource and Talent Management

Abstract

The study examines job satisfaction to mediate the relationship between compensation structure and organisational commitment on 62 respondents, working across job positions and classifications in a power utility-based organisation, in the Peninsula Malaysia. Previous studies in the field of organisational psychology has shown the importance of compensation as one of the main organisational factor that affect organisational effectiveness, but studies have also shown that there were no direct link between the two constructs. Based on the assumption, that a mediator to play a role in linking compensation to the organisational outcome construct, it was hypothesised that job satisfaction mediates the relationship between compensation and organisational commitment—an organisational outcome considered in the study as the dependent variable. Data were statistically analysed, and results showed job satisfaction to appear as a significant mediator between the studied variables

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1990The measurement and antecedents of affective, continuance and normative commitment to the organization 1995THE IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON TURNOVER, PRODUCTIVITY, AND CORPORATE FINANCIAL PERFORMANCE.1979The measurement of organizational commitment 2002Affective, Continuance, and Normative Commitment to the Organization: A Meta-analysis of Antecedents, Correlates, and Consequences 1976The nature and causes of job satisfaction 1990A review and meta-analysis of the antecedents, correlates, and consequences of organizational commitment.1963Towards an understanding of inequity.1997Job Satisfaction: Application, Assessment, Causes, and Consequences

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