The Effect of Compensation, Organizational Commitment on Employe Performance Through Organizational Behaviour as Intervening

International Journal of Business, Law, and Education, Dec 2024

Performance is important for every organisation, including universities. Various factors influence performance, including compensation, organizational commitment (OC), and organizational behaviour (OB). These factors are the variables in this research. The aim of this research is to determine the effects of compensation and organizational commitment on employee performance through organizational behaviour as the intervention. This research is a quantitative research, using non-probability sampling and using a questionnaire for collecting the data. The research results show that compensation has a direct effect on Employee Performance (EP), Organizational Behavior (OB) has a direct effect on Employee Performance (EP), and Organizational Behavior (OB) can be a variable that links organizational commitment (OC) to Employee Performance (EP).

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The Effect of Compensation, Organizational Commitment on Employe Performance Through Organizational Behaviour as Intervening

Volume 5, Number 2, 2024 https://ijble.com/index.php/journal/index The Effect of Compensation, Organizational Commitment on Employe Performance Through Organizational Behaviour as Intervening Anna Maria1* Jeanne Francoise Cen Pujianto2 1John Paul II Health Academy Pekanbaru Jaya University Yogyakarta *Corresponding Author: 2Atma ABSTRACT Performance is important for every organisation, including universities. Various factors influence performance, including compensation, organizational commitment (OC), and organizational behaviour (OB). These factors are the variables in this research. The aim of this research is to determine the effects of compensation and organizational commitment on employee performance through organizational behaviour as the intervention. This research is quantitative research, using non-probability sampling and using a questionnaire for collecting the data. The research results show that compensation has a direct effect on Employee Performance (EP), Organizational Behavior (OB) has a direct effect on Employee Performance (EP), and Organizational Behavior (OB) can be a variable that links organizational commitment (OC) to Employee Performance (EP). Keywords: Compensation. Organizational Commitment (OC); Performance; Employe; Organizational Behaviour (OB); INTRODUCTION Akademi Kesehatan John Paul II Pekanbaru (AKJP II Pekanbaru) has a very low turnover rate of 3% during 2020, 2021 and 2022. The level of retention of employee lecturers in the organisation is good, but the achievement of work results is still considered insufficient. In 2020 the average performance achieved by employees was only 79%, in 2021 it only reached 82% and in 2022 it reached 85% of the expected target of 100%. Employee performance (EP) is a work result that is in accordance with the standards set related to performance assessment Aropah et al., (2020). States that one of the things that affects the success of an organisation is EP which is the result of work in quantity achieved by an employee in carrying out his duties according to his responsibilities Katerina et al., (2013). states that one of the human resource performance management tools is formal EP assessment. Efforts that have been made by AKJP II Pekanbaru are to provide good compensation for lecturers and employees but have not had an impact on achieving the expected performance targets. In 2022 the performance target is still not 100%. This needs to be considered considering that compensation and employee performance are inseparable. Therefore, it encourages the need for an in-depth study related to Organizational Behaviour (OB) to mediate compensation on performance. OB is a positive employee behaviour that sincerely increases productivity regardless of whether compensation increases or no Tsauri (2013). that compensation can be given directly to employees, or indirectly, in order to improve their performance Dharma (2017). suggests Organizational Behavior (OB) is one of the behavioural variables that can improve performance with or without an increase in compensation. Positive organisational behaviour (OB) can be identified by a high desire to improve knowledge and skills sincerely and voluntarily on their own. The impact is that the company will benefit from achieving the expected results because this behaviour 2740 Volume 5, Number 2, 2024 https://ijble.com/index.php/journal/index does not expect whether or not there is an increase in compensation Triani et al., (2020). shows that OB is a form of volunteerism of organisational members who support organisational activities. This behaviour is usually expressed as actions that show devotion and concern for others. Positive organisational behaviour encourages employees to self-monitor their behaviour and choose the best behaviour for the benefit of the organisation. Successful organisations need employees who are willing to embody behaviours that exceed company expectations. Therefore, organisational behaviour deserves attention from organisations so that employees continue to be motivated to behave as expected by the organisation. Some organisational behaviours such as helping co-workers, following workplace rules and procedures, volunteering for additional tasks will collectively lead to improved organisational performance. In accordance with this, OB explains the attitude of employees as well as leaders within the company Yan Sya (2017). that OB is very important in the field of management because it covers many issues that managers and employees face every day. Concepts such as leadership, decision making, team building, motivation and job satisfaction are all aspects of organisational behaviour and management responsibilities. An institution's efforts to foster successful management go beyond how to delegate tasks and organise resources, but also how to analyse behaviour to motivate productivity Tewal et al. (2017). added that OB will influence outcomes that can lead to positive long-term and short-term achievements, selfimprovement, performance or conversely poor long-term achievements and lack of development Triani et al., (2020), (Panja, 2021) and (Qalati et al., 2022) suggested that OB has a significant effect on employee performance. Compensation earned by employees is received as a reward for services. If employees have OB, then compensation is no longer the main goal and employees by themselves will improve their performance Enny, (2019). that compensation can be defined as a form of service reward given to employees as a form of appreciation for their contribution and work to the company. However, research conducted by Suryani et al. (2019) and Fazriyah et al., (2018) found that the provision of compensation can affect the increased OB. In addition to compensation that refers to productivity, Organizational Commitment (OC) also has an influence on OB. Luthans and Doh in (Ningrum et al., 2021) state that OC is the emergence of behaviour based on wanting to continue to join a particular organisation, such desires as working together and working hard sincerely and confidently to achieve certain goals. Organizational Commitment also describes the form of loyalty of members in the organisation and is sustainable. This behaviour is usually shown by the attention given by the organisation Yusuf & Syarif (2017) that OC always connects the importance and relevance of employee attitudes towards OB with the assumption that commitment is a stable behavioural attribute Musringudin et al., (2021) and Sunaris et al., (2022) . OC can affect OB, while Lie et al., (2022) and Izma & Unais (2020). suggested the results of OC research have no effect on OB. The phenomenon of difficulties in building employee performance and the need to improve the effectiveness of Employe Performance (EP) in organisations, so the role of mediating variables needs to be studied Taib et al., (2018). increased employee performance (EP) is the hope of every organisation, but if perf (...truncated)


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Anna Maria, Cen Pujianto Jeanne Francoise. The Effect of Compensation, Organizational Commitment on Employe Performance Through Organizational Behaviour as Intervening, International Journal of Business, Law, and Education, 2024, pp. 2740 - 2753,