EFFECT OF COMPENSATION AND WORK ENVIRONMENT TO EMPLOYEE PERFORMANCE THROUGH JOB SATISFACTION AS A VARIABLE OF MEDIATION IN PT METISKA FARMA

Abstract

This study a purpose to know and analyze the influence of compensation and work environment on employee performance with job satisfaction as a variable of mediation either simultaneously or partially in PT. Metiska Farma. The sampling technique used is accidental sampling is the way of sampling by chance, ie anyone who happens to meet with this researcher and considered suitable to be a source of data will be a sample of this study. The sample of respondents in this study was 80 people. Data analysis using path analysis or path analysis. From result of analysis and discussion hence can be concluded that: (1) partially compensation have positive, strong and significant effect to employee performance with correlation coefficient equal to 0,618; (2) partially working environment has positive, strong and significant effect on employee performance with correlation coefficient of 0.679; (3) partially job satisfaction has a positive, strong and significant effect on employee performance with correlation coefficient of 0.618; (4) simultaneously compensation, work environment, and job satisfaction have a positive, strong and significant effect on employee performance with correlation coefficient of 0.723; (5) the effect of compensation on employee performance through job satisfaction is 0.618 x 0.776 =0.479. While the effect of compensation on employee performance is 0.618. In this case, the direct impact of compensation on employee performance is greater when compared with indirect influence through job satisfaction is 0.618> 0.479, so it can be said that job satisfaction variable not as a mediation variable; and (6) the effect of work environment on employee performance through job satisfaction is 0,640 x 0,618 =0,395. While the effect of the work environment on employee performance is 0,679. In this case, it is known that the direct effect of work environment on employee performance is greater when compared with indirect influence through job satisfaction is 0.679> 0.395, so it can be said that job satisfaction variable, not as a mediation variable.