The Influence of Competence and Organizational Commitment on Work Satisfaction and Their Impact on Performance Employee (Study in PT. KAI Divre III, South Sumatera)

The aim of this research is to analyze the effect of Competence and Organizational Commitment on Work Satisfaction and their impact on Employee Performance- A Case Study conducted in PT. KAI DIVRE III Palembang. The research design used in the research is explanatory design which explains the causal relationship among variables. The research location is in Palembang City, South Sumatra Province while the research objects is PT. KAI DIVRE III Palembang with 200 persons as employees. This dissertation used primary datafrom questionnaire filled out by the respondents.The sample selection used simple random sampling. The method of research used descriptive statistics using SPSS and Structural Equation Modeling (SEM) using Lisrel. The descriptive analysis shows that the level of Competence, Organizational Commitment, Work Satisfactionand Employee Performance is at a positive level. The results stated that the Competence has no significant impact on Work Satisfaction, Competence has significant impact on Employee Performance, Organizational Commitment has significant impact on Work Satisfaction, Organizational Commitment has significant impact on Employee Performance, and Work Satisfaction has significant impact on Employee Performance.