The Effect of Compensation on Employee Performance Mediated by Organizational Commitments

Abstract

The purpose of this research is to find out the effect of compensation on employee performance mediated by organizational commitment at Mahasaraswati Denpasar University with a total of 108 employees. The number of samples was 52 respondents using the Slovin method. Research result that compensation positive effect on performance. Compensation has a positive effect on organizational commitment. Organizational commitment has a positive effect on performance. Organizational commitment mediates the positive influence of compensation on employee performance at Denpasar Mahasaraswati University. Recommendations at Denpasar Mahasaraswati University are expected to maintain and improve the implementation of the compensation system. Implement compensation systems by paying attention to elements of organizational commitment such as affective commitment, ongoing commitment and normative commitment so that employees feel satisfied with the compensation received. Support the implementation of organizational commitment by providing opportunities for employees to actualize themselves, provide jobs that challenge, advance and empower members of the organization and promote it so as to realize good employee performance.