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International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue XI, November 2022|ISSN 2454-6186

The Effect of Compensation and Organizational Commitment on Performance with Job Satisfaction as Intervening Variable (Study of Muhammadiyah High School Teachers, Yogyakarta City)

Gita Danu Pranata, Syofyan Mulyana
Universitas Muhammadiyah Yogyakarta Indonesia

IJRISS Call for paper

Abstract: This study aims to analyze and identify the Effect of Compensation and Organizational Commitment on Performance with Job Satisfaction as an intervening variable for teachers of SMA Muhammadiyah Kota Madya Yogyakarta. The subject of this research is a teacher at Muhammadiyah high school in Yogyakarta. The sample of this study amounted to 140 respondents who were selected using purposive sampling. The analytical tool used is the SEM method with AMOS. Based on the analysis, it is found that compensation has a significant effect on performance, organizational commitment has a significant effect on performance, compensation has a significant effect on performance through job satisfaction, organizational commitment has a positive effect on performance through job satisfaction.

Keywords: Performance, Compensation, Organizational Commitment, and Job Satisfaction

I. INTRODUCTION

Human resources are an important component in organizations, because human resources are actors who process organizational resources into something of value. The potential possessed by every existing human resource needs to be utilized by an organization as well as possible in order to create optimal output. The achievement of organizational goals does not only depend on modern equipment, complete facilities and infrastructure, but the success of an organization depends on the human resources who will carry out the work. Organizations need to continue to strive to improve the performance of their employees with the hope that the organizational goals can be achieved. To improve performance and organizational commitment according to Wibowo (2016), it is necessary to have the attitudes, feelings, and behaviors of someone who declares himself part of an organization, is involved in activities and is loyal to the organization in order to achieve organizational goals. Someone who has organizational commitment tends to have an attitude of partisanship, a sense of love, and feels proud of the organization and feels an obligation to advance the organization. If employees already have a strong organizational commitment, it will improve their performance to achieve organizational goals. Performance is not only the result or work performance but also includes how the work process takes place. Mangkunegara (2005) states that performance is an achievement or work result, both quantity and quality, which is achieved over a period of time in carrying