Title: THE INFLUENCE OF FINANCIAL COMPENSATION AND NON-FINANCIAL COMPENSATION ON THE PERFORMANCE OF EMPLOYEES IN THE PLANT SECTION OF THE DJATIROTO SUGAR FACTORY WITH ORGANIZATIONAL COMMITMENT AS AN INTERVENING VARIABLE

Author: RIDWAN BAYU YULIANTO

Item Type : Thesis (Thesis)

Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

 

Abstract

This research aims to determine the effect of financial compensation on the performance of employees in the PG.Djatiroto plant section, the influence of non-financial compensation on the performance of employees in the PG.Djatiroto plant section, the influence of financial compensation on the performance of employees in the PG.Djatiroto plant section with organizational commitment as an intervening variable, and the influence Non-financial compensation for the performance of employees at the PG.Djatirot plant with organizational commitment as an intervening variable. The sample in this study amounted to 67 respondents who were distributed to employees of the PG.Djatiroto plant section. Research hypothesis testing was carried out using the Structural Equation Model (SEM) approach using Partial Least Square (PLS) software. PLS is a structural equation model (SEM) based on components or variants. The type of research used is quantitative research, namely using data in the form of numbers as a tool to find information about what you want to know, namely the independent variables are Financial Compensation (X1), Non-Compensation Financial (X2), the intervening variable is Organizational Commitment (Z) and the dependent variable is Performance (Y). The results of the analysis were obtained through distributing questionnaires to employees of the PG.Djatiroto plant section: (1) Financial compensation has a significant effect on performance (2) Non-financial compensation has a significant effect on performance (3) Financial compensation has a significant effect on performance with organizational commitment as an intervening variable. Organizational commitment absolutely mediates (fully mediates) the influence of financial compensation on employee performance. There is a direct positive influence of non-financial compensation on career rewards on employee performance (4) Non-financial compensation has a significant effect on performance with organizational commitment as an intervening variable. Organizational commitment absolutely mediates (fully mediates) the effect of non-financial compensation on employee performance.

Keywords: Financial Compensation, Non-Financial Compensation, Organizational Commitment, Employee Performance

 

Sources: http://repository.unair.ac.id/38613/