The Effect of Compensation on Organisational Commitment and Employee Performance with the Labour Union as the Moderating Variable

I Gede Riana, I Wayan Pradnyantha Wirasedana

Abstract


The aim of this research is to analyse the effect of compensation on employees' performance, the effect of organisational commitment on employees' performance, the effect of compensation on organisational commitment and the moderation role of a labour union on compensation and employees' performance. This research used sampling from cellular provider company in Bali by simple random sampling of 97 employees. The data was collected using questionnaire and was analysed with descriptive analysis and Partial Least Square. The result shows that compensation has a positive and significant effect on performance; organisational commitment has a positive non-significant effect on performance, compensation has a positive and significant on organisational commitment, and labour union has a negative and significant moderating on compensation and employees performance.

Keywords


compensation; organisational commitment; employees performance; labour union

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