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

Ilzar Daud · Nur Afifah

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Employee Performance and Management Job Satisfaction and Organizational Behavior Employee Performance and Motivation

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. JEL Classification: L22, M12, M19. Keywords: Compensation; Work Environment; Job Satisfaction; Performance Reference to this paper should be made as follows: Daud, I; Afifah, N. (2021). The Mediating Role of Job Satisfaction in the Relationship between Compensation and Work Environment on Performance, Journal of Management and Marketing Review, 6(2) 110 – 116. https://doi.org/10.35609/jmmr.2021.6.2(2)

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1994Research Design: Qualitative, Quantitative, and Mixed Methods Approaches 2006Challenges and prospects of HRM in developing countries: testing the HRM–performance link in the Eritrean civil service 2014Impact of Compensation on Employee Performance (Empirical Evidence from Banking Sector of Pakistan)2017The Effect of Work Environment on Job Satisfaction: Evidence from the Banking Sector in Ghana 2014Determinants of Job Satisfaction and its impact on Employee performance and turnover intentions 2017Impact of Compensation and Benefits on Job Satisfaction 2010IS JOB SATISFACTION MEDIATING THE RELATIONSHIP BETWEEN COMPENSATION STRUCTURE AND ORGANISATIONAL COMMITMENT? A STUDY IN THE MALAYSIAN POWER UTILITY 2018Linking Work Environment with Employee Performance in Public Middle Level TIVET Institutions in Kenya

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