Mediating effect of work performance and organizational commitment in the relationship between reward system and employees’ work satisfaction

Mediating effect of work performance and organizational commitment in the relationship between... PurposeThe purpose of this paper is to investigate the mediation effect of work performance and organizational commitment in the relationship between reward system and employees’ work satisfaction.Design/methodology/approachThe study population constituted all employees/permanent employees (civil servants and non-civil servants) at Bank of BNI, Bank of BRI, Bank of Mandiri, and Bank of South Sulawesi. The analytical method used to test the hypothesis of the research was structural equation modeling.FindingsBased on the analysis results, it can be concluded that the extrinsic reward system and the intrinsic reward system have a direct, significant effect on work performance and organizational commitment, and work performance and also organizational commitment have a direct, significant effect on work satisfaction. On the other hand, the extrinsic reward system and the intrinsic reward system have no direct effect on work performance, but work performance and organizational commitment as mediation variables bridge the relationship between the extrinsic reward system and the intrinsic reward system to work satisfaction.Originality/valueMediation effect (using the Sobel test) of work performance, and organizational commitment in the relationship between Reward Systems on work satisfaction, location of the study (no previous research for this relationship): Bank of South Sulawesi, Indonesia. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Management Development Emerald Publishing

Mediating effect of work performance and organizational commitment in the relationship between reward system and employees’ work satisfaction

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Publisher
Emerald Group Publishing Limited
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0262-1711
D.O.I.
10.1108/JMD-11-2016-0256
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to investigate the mediation effect of work performance and organizational commitment in the relationship between reward system and employees’ work satisfaction.Design/methodology/approachThe study population constituted all employees/permanent employees (civil servants and non-civil servants) at Bank of BNI, Bank of BRI, Bank of Mandiri, and Bank of South Sulawesi. The analytical method used to test the hypothesis of the research was structural equation modeling.FindingsBased on the analysis results, it can be concluded that the extrinsic reward system and the intrinsic reward system have a direct, significant effect on work performance and organizational commitment, and work performance and also organizational commitment have a direct, significant effect on work satisfaction. On the other hand, the extrinsic reward system and the intrinsic reward system have no direct effect on work performance, but work performance and organizational commitment as mediation variables bridge the relationship between the extrinsic reward system and the intrinsic reward system to work satisfaction.Originality/valueMediation effect (using the Sobel test) of work performance, and organizational commitment in the relationship between Reward Systems on work satisfaction, location of the study (no previous research for this relationship): Bank of South Sulawesi, Indonesia.

Journal

Journal of Management DevelopmentEmerald Publishing

Published: Feb 12, 2018

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