THE EFFECTS OF COMPENSATION, AND ORGANIZATIONAL CLIMATE ON EMPLOYEES� PERFORMANCE BY ORGANIZATIONAL COMMITMENT

HRs main challenge is how to build a performance culture where employees can provide optimal performance. In this study aims to determine the effect of compensation and organizational climate on organizational commitment and influence effect on employee performance. One of the factors to improve employee performance is high organizational commitment as well. Previous studies have suggested that compensation and organizational climate influence the organizational commitment. Here, we found that organizational commitment becomes one of the main factors that affect employee performance. This research was conducted by distributing questionnaires by collected data. After the data collected, we processed this data using structure equational modelling with compensation and organizational climate as independent variables (X), employee performance as dependent variable (Y), and organizational commitment as intervening variables (Z). The result shows compensation and organizational climate has positive relationship with organizational commitment. Thus, the organizational climate and organizational commitment has positive and significant relationship with employee performance due to compensation has a negative significant relationship with employee performance.

1.  UEU-Journal-20847-11_1725.pdf - 833 KB

1. Journal of Multidisciplinary Academic (JoMA)
   https://www.kemalapublisher.com/index.php/JoMA/article/view/484

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