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Relationship Model of Compensation, Motivation, Job Satisfaction and Employee Performance

Author

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  • Dorothea Wahyu Ariani

    (Universitas Mercu Buana Yogyakarta, Indonesia.)

Abstract

Employee performance (EP) is an important variable that can improve company performance. Many studies have examined various factors that influence EP. Compensation, motivation, and job satisfaction (JS) are three important variables that have been shown to have an effect EP. This study aimed to examine the model of the relationship between the four variables. By using 520 government company employees in Yogyakarta, Indonesia, the results of model testing proved that compensation, motivation, and JS were related to EP. The results of the mediation model testing using structural equation modeling (SEM) found that motivation also played a role as a mediating variable for the relationship between financial rewards and EP. In this relationship model, motivation was able to increase JS, but employees who feel satisfied cannot guarantee that they will perform better.

Suggested Citation

  • Dorothea Wahyu Ariani, 2023. "Relationship Model of Compensation, Motivation, Job Satisfaction and Employee Performance," International Review of Management and Marketing, Econjournals, vol. 13(4), pages 9-13, July.
    • Handle: RePEc:eco:journ3:2023-04-2
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    References listed on IDEAS

    as
    1. Nnaeto Japhet Olusadum & Ndoh Juliet Anulika, 2018. "Impact of Motivation on Employee Performance: A Study of Alvan Ikoku Federal College of Eduaction," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 9(1), pages 53-65, February.
    2. Kuvaas, Bård & Buch, Robert & Weibel, Antoinette & Dysvik, Anders & Nerstad, Christina G.L., 2017. "Do intrinsic and extrinsic motivation relate differently to employee outcomes?," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 244-258.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Compensation; Motivation; Job Satisfaction; Performance;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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