The Effect of Remuneration Policies and Learning Organizations on Employee Satisfaction and Performance in Regional Development Banks of East Java

Abstract

As a business organization, East Java Regional Development Bank (PT Bank Pembangunan Daerah Jawa Timur Tbk) has a clear landscape in improving its business by emphasizing on the development of its human capital. Therefore, the purpose of this study is to examine how the job satisfaction and performance of banking employees can increase in terms of the role of remuneration policy and learning organization. A total of 202 East Java Regional Development Bank employees who are in the middle managerial position are taken as respondents in this study. This study uses AMOS-based structural equation modeling in analyzing the collected data. The results show that all the effects between the observed variables are accepted. An important finding from this research is that remuneration policy is found to be the most important determinant of satisfaction and performance.As a business organization, East Java Regional Development Bank (PT Bank Pembangunan Daerah Jawa Timur Tbk) has a clear landscape in improving its business by emphasizing on the development of its human capital. Therefore, the purpose of this study is to examine how the job satisfaction and performance of banking employees can increase in terms of the role of remuneration policy and learning organization. A total of 202 East Java Regional Development Bank employees who are in the middle managerial position are taken as respondents in this study. This study uses AMOS-based structural equation modeling in analyzing the collected data. The results show that all the effects between the observed variables are accepted. An important finding from this research is that remuneration policy is found to be the most important determinant of satisfaction and performance.