The Mediating Role of Motivation and Job Satisfaction in the Relationship between Compensation and Organizational Commitment in Micro Finance Institutions
DOI:
https://doi.org/10.32832/jm-uika.v12i1.4024Keywords:
Compensation, Motivation, Job Satisfaction, Organizational Commitment, Microfinance ServicesAbstract
This study aims to determine the effect of compensation, motivation, and job satisfaction on organizational commitment in Islamic microfinance services. This research has four variables: compensation as an independent variable, motivation, job satisfaction as intervening variables, and commitment as a dependent variable. The subjects in this study were active employees in one of the Islamic microfinance services. It is Baitul mal wa tamwil (BMT). This research uses quantitative methods. Data collection was carried out by distributing questionnaires using a 5-point Likert scale with 240 total valid responses. The data were analyzed using Structural equation modeling (SEM) using AMOS version 24. The results showed that compensation had a positive and significant effect on motivation, compensation had a positive and significant effect on job satisfaction, motivation had a positive and significant effect on organizational commitment, compensation had a positive and significant effect on organizational commitment, job satisfaction had a positive and significant effect on organizational commitment, compensation had a positive and significant effect on organizational commitment through motivation and job satisfaction as intervening variables. This study finds providing several important implications for research and implementing microfinance services.
References
Al-Madi, F. N., Assal, H., Shrafat, F., & Zeglat, D. (2017). The Impact of Employee Motivation on Organizational Commitment. European Journal of Business and Management, 9(15), 134-145.
Baskara, I. G. K. (2013). Lembaga keuangan mikro di Indonesia. Buletin Studi Ekonomi, 18(2), 114–125.
Betanzos-Díaz, N., Rodríguez-Loredo, C. S., & Paz-Rodríguez, F. (2017). Development and validation of a questionnaire on normative organizational commitment: A pilot study in Mexicans workers. Anales de Psicologia, 33(2), 393–402. https://doi.org/10.6018/analesps.33.2.235211.
Colquitt, J. A., Lepine, J. A., & Wesson. M. J. (2015), Organizational Behavior: Improving Performance and Commitment in the Workplace. Fourth edition, New York: McGraw-Hill Education.
Demo, G., Neiva, E. R., Nunes, I., & Rozzett, K. (2012). Human resources management policies and practices scale (HRMPPS): Exploratory and confirmatory factor analysis. Brazilian Administration Review, 9(4), 395–420. https://doi.org/10.1590/s1807-76922012005000006.
Dessler, G. (2015). Manajemen Sumber Daya Manusia. Jakarta: Salemba Empat.
Gagné, M., Forest, J., Gilbert, M. H., Aubé, C., Morin, E., & Malorni, A. (2010). The motivation at work scale: Validation evidence in two languages. Educational and Psychological Measurement, 70(4), 628–646. https://doi.org/10.1177/0013164409355698.
Gheitani, A., Imani, S., Seyyedamiri, N., & Foroudi, P. (2019). Mediating effect of intrinsic motivation on the relationship between Islamic work ethic, job satisfaction, and organizational commitment in banking sector. International Journal of Islamic and Middle Eastern Finance and Management, 12(1), 76–95. https://doi.org/10.1108/IMEFM-01-2018-0029.
Ghozali, I. (2017), Model Persamaan Struktural (Konsep dan Aplikasi dengan Program AMOS 24 Update Bayesian SEM). Semarang: Badan Penerbit Universitas Diponegoro.
Hair Jr, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analy-sis (7 ed.). Harlow: Pearson Education Limited.
Hasibuan, M. S. P. (2011). Manajemen Sumber Daya Manusia (Edisi Revisi). Jakarta: Bumi Aksara.
Hughes, R. L., Ginette, R. C., & Curphy, G. J. (2012). Leadership: Enhancing the Lessons of Experience. New York: McGraw-Hill Irwin.
Islam, M. Z., & Siengthai, S. (2009). Quality of work life and organizational performance: Empirical evidence from Dhaka Export Processing Zone. In ILO Conference on Regulating Decent Work, Geneva, 1–19.
Konopaske, R., Ivancevich, J. M., & Matteson. M. T. (2018), Organizational Behavior and Management (11 ed.). New York: McGraw-Hill Education.
Lee, X., Yang, B., & Li, W. (2017). The influence factors of job satisfaction and its relationship with turnover intention: Taking early-career employees as an example. Anales de Psicología, 33(3), 697-707. https://doi.org/10.6018/analesps.33.3.238551.
Lepold, A., Tanzer, N., Bregenzer, A., & Jiménez, P. (2018). The efficient measurement of job satisfaction: Facet-items versus facet scales. International Journal of Environmental Research and Public Health, 15(7), 1-19. https://doi.org/10.3390/ijerph15071362.
Luthans, F. (2012). Perilaku Organisasi. Yogayakarta: Andi.
Mangkunegara, A. P. (2011). Manajemen Sumber Daya Manusia Perusahaan. Bandung: PT. Remaja Rosdakarya.
Martika, Tjahjono, H. K., & Fauziah. (2016). Organisasi dengan kepuasan kerja sebagai variabel intervening pada pekerja outsourcing. Prosiding Konferensi Nasional Ke-4 Asosiasi Program Pascasarjana Perguruan Tinggi Muhammadiyah (APPPTM), 51–57.
Marwansyah. (2012). Manajemen Sumber Daya Manusia (Edisi Kedua). Bandung: CV Alfabeta.
Mathis, R. L., & Jackson, J. H. (2011), Human Resource Management (13 ed.). Ohio: South-Western Cengage Learning.
Nawawi, M., Syarifuddin, A., Sehe, M., & Ekawati, H. (2018). The effect compensation and organization culture on the motivation and commitment organization coal company in East Kalimantan Province. International Journal of Scientific and Technology Research, 7(9), 11–14.
Pepe, A., Addimando, L., & Veronese, G. (2017). Measuring teacher job satisfaction: Assessing invariance in the teacher job satisfaction scale (TJSS) across six countries. Europe's Journal of Psychology, 13(3), 396–416. https://doi.org/10.5964/ejop.v13i3.1389.
Priyankara, G. W. J. (2016). The mediation impact of job satisfaction on supervision, pay and organizational commitment: A study in selected private hospital organizations in Colombo District, Sri Lanka. 3rd International HRM Conference 8th October 2016, 3(1), 177–188.
Putra, B. N. K., Sudja, I. N., & Martini, L. K. B. (2018). The effect of job characteristics and compensation to work satisfaction and organization commitment on all LPD Kerambitan Tabanan. International Journal of Contemporary Research and Review, 9(3), 20572–20580. https://doi.org/10.15520/ijcrr/2018/9/03/462.
Rahman, S., & Singh, T. (2019). Dimensions of employee satisfaction with compensation: Scale development and validation. International Journal of Business Excellence, 19(2), 223–242. https://doi.org/10.1504/IJBEX.2019.102238.
Rizal, M., Idrus, M. S., & Mintarti, R. (2014). Effect of compensation on motivation , organizational commitment and employee performance: Studies at local revenue management in Kendari City. International Journal of Business and Management Invention, 3(2), 64–79.
Robbins, S. P. (2006). Perilaku Organisasi. Jakarta: Gramedia.
Robbins, S. P., & Judge, T. A. (2017), Organizational Behavior (17 ed.). London: Pearson.
Sasaki, N., Sato, S., Yamaguchi, S., Shimodaira, M., & Kawakami, N. (2018). Development of a scale to assess motivation for competitive employment among persons with severe mental illness. PLOS ONE, 13(10), 1–14. https://doi.org/10.1371/journal.pone.0204809.
Sudiardhita, I. K. R. (2014). The effect of job characteristics, compensation and job satisfaction to the economic teachers commitment in the high school Bali Province. In International Conference on Education 2014, 67-82.
Timsal, A., & Malik, A. Q. (2015). Impact of compensation policy on the motivation level of employees: empirical evidence from the University Teachers of Pakistan. South Asian Journal of Banking and Social Science, 1(1), 33–50.
Tremblay, M. A., Blanchard, C. M., Taylor, S., Pelletier, L. G., & Villeneuve, M. (2009). Work extrinsic and intrinsic motivation scale: Its value for organizational psychology research. Canadian Journal of Behavioural Science, 41(4), 213–226. https://doi.org/10.1037/a0015167.
Wardhani, W. K. (2015). Pengaruh motivasi kerja karyawan terhadap komitmen organisasional dengan kepuasan kerja sebagai variabel intervening. Jurnal Administrasi Bisnis, 2(1), 1-10.
Weibo, Z., Kaur, S., & Jun, W. (2010). New development of organizational commitment: A critical review (1960 - 2009). African Journal of Business Management, 4(1), 12–20.
Widarto, I., & Anindita, R. (2018). Analysis of the effect of motivation, job satisfaction, and organizational commitment on performance. International Advanced Research Journal in Science, Engineering and Technology, 5(9), 21–29. https://doi.org/10.17148/iarjset.2018.594.
Wukir (2013). Manajemen Sumber Daya Manusia dalam Organisasi Sekolah, Yogyakarta: Multi Presindo.
Yanuar, Y. (2017). Compensation, motivation and performance of employees: Evidence from Indonesia. International Journal of Economic Perspectives, 11(4), 486–492.
Downloads
Published
How to Cite
Issue
Section
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).