The Effect of Work Motivation, Compensation and Work Discipline on Employee Performance through Job Satisfaction at Batam University, Indonesia
Keywords:motivation, compensation, discipline, job satisfaction, employee performance
In the globalisation era, the advanced world of education makes educational organisations strive to improve the quality of education and produce student's quality who are supported by the quality of management. The development of free trade in Batam City is currently a challenge for industry and trade with high competitiveness and efficiency in work. The purpose of this study is to determine the effect of motivation, compensation, and discipline on employee performance through job satisfaction. This quantitative study is conducted at Batam University, Riau Island, Indonesia. A total of 103 respondents were participated in this study and collected using simple random sampling. The data was analysed using Structural Equation Modelling – Analysis of Moments Structure (SEM-AMOS). The study result found that compensation has a significant positive effect on job performance. Besides that, motivation and discipline have no significant effect on job performance. Also, this study indicated that job satisfaction mediates the relationship between motivation and job performance. In conclusion, this study has identified that compensation has a significant positive effect on job performance. Besides that, motivation and discipline have no significant effect on job performance. Also, this study has examined the mediating role of job satisfaction and found that job satisfaction mediates the relationship between motivation and job performance. In addition, job satisfaction does not mediate the relationship between discipline and job performance. This study indicated that leadership's motivation and organisation's compensation and discipline are needed to increase job satisfaction so that employee performance will be increased. Thus, Batam University should optimise regulation and supervision of discipline of its employees because the research results were not significant on job satisfaction and employee performance.
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