Factors Affecting Work Satisfaction and Employee\r\nPerformance in Automotive Industrial Chain\r\n

Purpose: This study aimed to analyze the determination of compensation, motivation and
\r\norganizational commitment to employee performance and job satisfaction as an intervening
\r\nvariable.
\r\nDesign/methodology/approach: The statistical method used is the Structural Equation Model
\r\nwith a total sample of 112 respondents. This study uses a questionnaire to measure the factors
\r\naffecting work satisfaction as compensation, motivation, organizational commitment, job
\r\nsatisfaction and employee performance.
\r\nFindings: The results of this study found that there were positive and significant effects of
\r\ncompensation on the job satisfaction, and organizational commitment to job satisfaction as
\r\nwell as the effect of motivation on employee’s performance. Moreover, the insignificant effect
\r\nis found in the effect of the job satisfaction on employee performance, the motivation on the
\r\njob satisfaction, the compensation towards the employee performance and the organizational
\r\ncommitment on the employee performance. Mediation test proves that the job satisfaction is
\r\nable to mediate the effects of compensation, motivation and organizational commitment on
\r\nemployee performance.
\r\nPractical Implications: The results of this study can be the basis for the management of
\r\nautomotive product distributors in Batam City to increase compensation, and motivation for
\r\nemployees to improve job satisfaction and company performance.
\r\nOriginality/value: This study confirms the result that there are positive and significant effects
\r\nof compensation on job satisfaction and organizational commitment to job satisfaction, and
\r\nthe effect of motivation on employee’s performance.
\r\n