The Effect of Compensation, Motivation and Work Satisfaction on Employee Performance

This article evaluates the impact of compensation, motivation and work satisfaction on employee performance. It concludes that a fair, attractive and competitive compensation system can enhance employee motivation and job satisfaction, leading to improved performance. The study was conducted on non-managerial employees of PT. Bank XYZ (PERSERO) TBK, and the data was collected through a survey method and a questionnaire. The article suggests that realistic, measurable, achievable and reliable performance appraisal systems should be in place to evaluate employee efficiency, timeliness and quality of work.

HRMT20024 Assessment 1
Week xxx
Week 10 Motivation, rewards and
compensation
Name:
Student number :
Campus:
Lecturer/tutor :

◦ The title of the article is “The effect of compensation, motivation of
employee and work satisfaction to employee performance PT. Bank
XYZ (PERSERO) TBK “ .
◦ It was published in the Academy of Strategic Management Journal.
◦ The study was conducted by Sudiardhita , Mukhtar , Hartono,
Herlitah, Sariwulan, Nikensari .
◦ All of them belonged to Universitas Negeri Jakarta (Sudiardhita et
al., 2018).
Article Title and full reference

 The aim of the article is to determine the effect of
compensation , encouragement and satisfaction on the
performance of the workers of the bank.
 The research question is aimed at evaluating the theory that
if compensation , satisfaction and motivation creates a good
effect on the growth of the employees.
Article - objective

 The data was gathered using the survey method and a
questionnaire through the primary data collection
methodology .
 Statements were given to individual respondents and the
results were assessed using the quantitative research approach
emphasizing on the numerical evaluation of the data.
 The research was conducted on a sample of 346 respondents
employed on non managerial posts working at 24 branches in
the region of Regional Office 1 of the bank.
Article - method

 The findings of the research are that compensation has a good
and significant impact on motivation , job satisfaction and
performance of the employees.
 The study discusses that if the employees are paid higher
compensation , then they would be highly motivated in
carrying out their assigned responsibilities.
 Furthermore increase in the motivation enhances the
level of job satisfaction and performance of the employees
(Kuvaas, Buch, Weibel, Dysvik & Nerstad, 2017).
Article - findings

 The study concludes by saying that an efficient compensation
system should be fair, attractive ,motivating and competitive.
 There should be a policy for improving the employee
motivation .
 It contributes to the body of knowledge by stating that the
employees must have the opportunity to grow in their
careers and to achieve the awards for their performance and
loyalty .
Article - conclusion

 The article suggests that there should be realistic ,
measurable , achievable and reliable performance appraisal
systems .
 These criteria should determine the performance by
evaluating the efficiency ,timeliness and quality of the work.
 The management should provide challenging work
environment with good job security systems and proper
equipment for work so that the performance of the employees
can be measured(Malik, Butt & Choi, 2015).
Article – how does it contribute to
this week’s topic

 Kuvaas, B., Buch, R., Weibel, A., Dysvik, A. & Nerstad, C. G. (2017). Do
intrinsic and extrinsic motivation relate differently to employee
outcomes?. Journal of Economic Psychology, 61(2017), 244-258.
 Malik, M. A. R., Butt, A. N. & Choi, J. N. (2015). Rewards and employee
creative performance: Moderating effects of creative self‐efficacy, reward
importance, and locus of control. Journal of Organizational Behavior,
36(1), 59-74.
 Sudiardhita, K. I., Mukhtar, S., Hartono, B., Herlitah, Sariwulan, T. &
Nikensari, S. I. (2018). The Effect of Compensation, Motivation of
Employee and Work Satisfaction to Employee Performance PT. Bank XYZ
(PERSERO) TBK. Academy of Strategic Management Journal, 17(4),1-14.
References