IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vviiiy2020i2p317-325.html
   My bibliography  Save this article

Factors Affecting Work Satisfaction and Employee Performance in Automotive Industrial Chain

Author

Listed:
  • Indrayani
  • Awis Al Qarny

Abstract

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.

Suggested Citation

  • Indrayani & Awis Al Qarny, 2020. "Factors Affecting Work Satisfaction and Employee Performance in Automotive Industrial Chain," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 317-325.
  • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:2:p:317-325
    as

    Download full text from publisher

    File URL: https://www.ijeba.com/journal/464/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. T. Suryanto & J.E. Thalassinos & E.I. Thalassinos, 2017. "Board Characteristics, Audit Committee and Audit Quality: The Case of Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 44-57.
    2. Denny Bernadus & Christina Whidya Utami & Liliana, 2018. "Factor Analysis of Ownership Behavior at Family Business: The Case of Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 27-38.
    3. repec:ers:journl:v:vi:y:2018:i:2:p:27-38 is not listed on IDEAS
    4. Knez, Marc & Simester, Duncan, 2001. "Firm-Wide Incentives and Mutual Monitoring at Continental Airlines," Journal of Labor Economics, University of Chicago Press, vol. 19(4), pages 743-772, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pierre Koning & J. Vyrastekova & S. Onderstal, 2006. "Team incentives in public organisations; an experimental study," CPB Discussion Paper 60, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Gill, David & Prowse, Victoria & Vlassopoulos, Michael, 2013. "Cheating in the workplace: An experimental study of the impact of bonuses and productivity," Journal of Economic Behavior & Organization, Elsevier, vol. 96(C), pages 120-134.
    3. Simon Gaechter & Chris Starmer & Fabio Tufano, 2022. "Measuring “group cohesion” to reveal the power of social relationships in team production," Discussion Papers 2022-12, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    4. Carpenter, Jeffrey P. & Bowles, Samuel & Gintis, Herbert, 2006. "Mutual Monitoring in Teams: Theory and Experimental Evidence on the Importance of Reciprocity," IZA Discussion Papers 2106, Institute of Labor Economics (IZA).
    5. Rudi Zulfikar & Nana Nofianti & Kurniasih Dwi Astuti & Meutia Meutia & Aldi Ramadan, 2020. "The Role of Ownership’s Concentration Moderating Dividend Policy Effects on Firm Value," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 126-135.
    6. Thommes, Kirsten & Vyrastekova, Jana & Akkerman, Agnes, 2015. "Behavioral spillovers from freeriding in multilevel interactions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 56(C), pages 78-87.
    7. Christophe Lemiére & Gaute Torsvik & Ottar Mæstad & Christopher H. Herbst & Kenneth L. Leonard, 2013. "Evaluating the Impact of Results-Based Financing on Health Worker Performance: Theory, Tools and Variables to Inform an Impact Evaluation," Health, Nutrition and Population (HNP) Discussion Paper Series 98269, The World Bank.
    8. Isabelle Vialle & Luis Santos-Pinto & Jean-Louis Rullière, 2011. "Self-Confidence and Teamwork : An Experimental Test," Working Papers 1126, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    9. Simon Burgess & Carol Propper & Marisa Ratto & Emma Tominey, 2017. "Incentives in the Public Sector: Evidence from a Government Agency," Economic Journal, Royal Economic Society, vol. 127(605), pages 117-141, October.
    10. Mathieu Lefebvre & Lucie Martin-Bonnel de Longchamp, 2022. "Knowledge acquisition or incentive to foster coordination? A real-effort weak-link experiment with craftsmen," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 6(S1), pages 93-107, July.
    11. M. Nurhayati & A. Thoyib & Noermijati & D.W. Irawanto, 2018. "Impersonal Trust and Perceived Organizational Politics on Organizational Commitment," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 391-403.
    12. Giovanna Devetag & Andreas Ortmann, 2007. "When and why? A critical survey on coordination failure in the laboratory," Experimental Economics, Springer;Economic Science Association, vol. 10(3), pages 331-344, September.
    13. Leila Baghdadi & Rihab Bellakhal & Marc-Arthur Diaye, 2016. "Financial Participation: Does the Risk Transfer Story Hold in France?," British Journal of Industrial Relations, London School of Economics, vol. 54(1), pages 3-29, March.
    14. Dur, Robert & Sol, Joeri, 2010. "Social interaction, co-worker altruism, and incentives," Games and Economic Behavior, Elsevier, vol. 69(2), pages 293-301, July.
    15. Jan Zabojnik, 2014. "Stock-based Compensation Plans And Employee Incentives," Working Paper 1325, Economics Department, Queen's University.
    16. repec:ers:journl:v:volumexxi:y:2018:i:issue4:p:368-377 is not listed on IDEAS
    17. Berna Dogan Basar, 2021. "Corporate Governance, Cost of Capital and Tobin Q: Empirical Evidence from Turkey Listed Companies," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 19(1), pages 51-78.
    18. Adams, Christopher P., 2006. "Optimal team incentives with CES production," Economics Letters, Elsevier, vol. 92(1), pages 143-148, July.
    19. de la Rosa, Leonidas Enrique, 2011. "Overconfidence and moral hazard," Games and Economic Behavior, Elsevier, vol. 73(2), pages 429-451.
    20. Myra V. De Leon & Jerwin B. Tubay, 2020. "Ethical Leadership of Supervisors and Internal Social Capital in a Financial Institution," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 291-301.
    21. J. Miguel Villas-Boas, 2020. "Repeated Interaction in Teams: Tenure and Performance," Management Science, INFORMS, vol. 66(3), pages 1496-1507, March.

    More about this item

    Keywords

    Compensation; motivation; organizational commitment; job satisfaction; employee’s performance.;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:viii:y:2020:i:2:p:317-325. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.