Effects of Demographic Factors, Compensation, Job Satisfaction on Organizational Commitment (A Study on the Inspectorate Office of Merauke and Boven Digoel Regency)
Keywords:
demographic factors; compensation; job satisfaction; organizational commitment
Abstract
This study aimed to determine the effect of demographic factors and compensation on organizational commitment mediated by job satisfaction. This was a quantitative study using a causal analysis. The research instrument was a questionnaire with a five-point Likert scale. The research samples consisted of 109 employees of the Inspectorate Office of Merauke and Boven Digoel Regency. The data were analyzed using the SEM-PLS method. The results showed that demographic factors had a negative effect on organizational commitment and compensation, but did not have a significant effect on job satisfaction. On the other hand, compensation had a positive and significant effect on job satisfaction and organizational commitment. Similarly, job satisfaction also had a positive and significant effect on organizational commitment. Compensation can mediate the relationship between demographic factors with organizational commitment and job satisfaction. Job satisfaction can mediate the relationship between compensation with organizational commitment, but cannot mediate the relationship between demographic factors with organizational commitment.
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References
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Bashir, M., Jianqiao, L., Zhao, J., Ghazanfar, F., & Khan, M. M. (2011). The role of demographic factors in the relationship between high performance work system and job satisfaction: A multidimensional approach. International Journal of Business and Social Science, 2(18), 207–218.
Bibby, C. L. (2008). Should I Stay or Should I Leave? Perceptions of Age Discrimination, Organizational Justice, and Employee Attitudes on Intentions to Leave. The Journal of Applied Management and Entrepreneurship, 13(2), 63–86.
Cantiello, J., Fottler, M. D., Oetjen, D., & Zhang, N. J. (2015). The impact of demographic and perceptual variables on a young adult’s decision to be covered by private health insurance. BMC Health Services Research, 15(1), 1–15. https://doi.org/10.1186/s12913-015-0848-6
Chiu, R. K., Wai‐Mei Luk, V., & Li‐Ping Tang, T. (2002). Retaining and motivating employees. Personnel Review, 31(4), 402–431. https://doi.org/10.1108/00483480210430346
Chordiya, R., Sabharwal, M., & Goodman, D. (2017). Affective Organizational Commitment and Job Satisfaction: A Cross-National Comparative Study. Public Administration, 95(1), 178–195. https://doi.org/10.1111/padm.12306
Colarelli, S. M., & Bishop, R. C. (1990). Career Commitment: Functions, Correlates, and Management. Group & Organization Studies, 15(2), 158–176. https://doi.org/10.1177/105960119001500203
Daniel, C. O. (2019). Compensation management and its impact on organizational commitment. International Journal of Contemporary Applied Researches, 6(2), 26–36.
Donner, W., & Rodríguez, H. (2008). Population composition, migration and inequality: The influence of demographic changes on disaster risk and vulnerability. Social Forces, 87(2), 1089–1114. https://doi.org/10.1353/sof.0.0141
Eleswed, M., & Mohammed, F. (2013). The impact of gender, age, years of experience, education level, and position type on job satisfaction and organizational commitment: An exploratory study in the kingdom of Bahrain. International Journal of Business and Social Science, 4(11), 108–119.
Feraro-Banta, L., & Shaikh, S. Al. (2017). Relation of Compensation and Benefits on Employees’ Performance: A Study of Audit Firms in Bahrain. International Advanced Research Journal in Science, Engineering and Technology, 4(5), 175–183. https://doi.org/10.17148/IARJSET.2017.4533
Gunlu, E., Aksarayli, M., & Şahin Perçin, N. (2010). Job satisfaction and organizational commitment of hotel managers in Turkey. International Journal of Contemporary Hospitality Management, 22(5), 693–717. https://doi.org/10.1108/09596111011053819
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Thousand Oaks, California: Sage Publications, Inc.
Heidarian, A. R., Jafari Kelarijani, S. E., Jamshidi, R., & Khorshidi, M. (2015). The relationship between demographic characteristics and motivational factors in the employees of social security hospitals in Mazandaran. Caspian Journal of Internal Medicine, 6(3), 170–174. https://pubmed.ncbi.nlm.nih.gov/26644886
Ibrahim, I. I., & Boerhaneoddin, A. (2010). Is job satisfaction mediating the relationship between compensation structure and organisational commitment? A study in the Malaysian power utility. Journal of Global Business and Economics, 1(1), 43–61.
Jerrim, J. (2011). Do UK Higher Education Students Overestimate Their Starting Salary?*. Fiscal Studies, 32(4), 483–509. https://doi.org/10.1111/j.1475-5890.2011.00148.x
Jurik, N. C., Halemba, G. J., Musheno, M. C., & Boyle, B. V. (1987). Educational Attainment, Job Satisfaction, and the Professionalization of Correctional Officers. Work and Occupations, 14(1), 106–125. https://doi.org/10.1177/0730888487014001006
Khan, M., Tarif, A., & Zubair, D. S. S. (2016). Non-financial incentive system and organizational commitment: An empirical investigation. Pakistan Business Review (ISSN: 1561-8706), 18(1), 55–75.
Kielerstajn, R. (2008). Age and work motivation: The view of older employees’. Sweden: Theses, Department of Education and Psychology, University of Gävle.
Kinicki, A., & Kreitner, R. (2007). Employee Behavior. New York: McGraw-Hill.
Konya, V., Matić, D., & Pavlović, J. (2016). The influence of demographics, job characteristics and characteristics of organizations on employee commitment. Acta Polytechnica Hungarica, 13(3), 119–138.
Levina, N., & Xin, M. (2007). Comparing IT workers’ compensation across country contexts: Demographic, human capital, and institutional factors. Information Systems Research, 18(2), 193–210.
Lincoln, J., & Kalleberg, A. (1990). Culture, Control and Commitment: A Study of Work Organization and Work Attitudes in the United States and Japan. Cambridge: Cambridge University Press.
Lok, P., & Crawford, J. (2004). The effect of organisational culture and leadership style on job satisfaction and organisational commitment. Journal of Management Development, 23(4), 321–338. https://doi.org/10.1108/02621710410529785
Mondy, W., Noe, M., & Premeaux, R. (1999). Human Resources Management. New Jersey: Prentice Hall.
Mount, G. (2006). The role of emotional intelligence in developing international business capability: EI provides traction. In Linking emotional intelligence and performance at work: Current research evidence with individuals and groups. Mahwah, NJ: Erlbaum.
Mowday, R. T., Porter, L. W., & Steers, R. M. (1982). Employee-organizational linkages: The psychology of commitment, absenteeism, and turnover. New York: Academic Press.
Mowday, R. T., Steers, R. M., & Porter, L. W. (1979). The measurement of organizational commitment. Journal of Vocational Behavior, 14(2), 224–247. https://doi.org/10.1016/0001-8791(79)90072-1
Mwesigwa, R., Tusiime, I., & Ssekiziyivu, B. (2020). Leadership styles, job satisfaction and organizational commitment among academic staff in public universities. Journal of Management Development, 39(2), 253–268. https://doi.org/10.1108/JMD-02-2018-0055
Nasution, D. A. D. (2019). The Effect of Implementation Islamic Values and Employee Work Discipline on The Performance of Moslem Religious Employees at Regional Financial Management in the North Sumatera Provincial Government. International Halal Conference & Exhibition 2019 (IHCE), 1(1), 1–7.
Nasution, M. I., Prayogi, M., Jufrizen, J., Pulungan, D. R., & Juliandi, A. (2019). Compensation and Organizational Commitment: The Mediating Role of Job Satisfaction. 2nd International Conference On Advance And Scientific Innovation, ICASI 2019. https://doi.org/10.4108/eai.18-7-2019.2288578
Oliveira, P. N., & Rowe, D. E. O. (2018). Organizational commitment in the public sector: review and research agenda. Revista Pensamento Contemporâneo Em Administração, 12(2), 43–53. https://doi.org/10.12712/rpca.v12i2.1259
Peltokorpi, V., Allen, D. G., & Froese, F. (2015). Organizational embeddedness, turnover intentions, and voluntary turnover: The moderating effects of employee demographic characteristics and value orientations. Journal of Organizational Behavior, 36(2), 292–312. https://doi.org/https://doi.org/10.1002/job.1981
Pratomo, W. A., Suwandi, & Warokka, A. (2013). The Linkages of Financial Liberalization and Currency Stability: What do we learn from Pre and Post Asian Financial Crisis? Journal of Economics Studies and Research, 2013, 1–9. https://doi.org/10.5171/2013.235134
Putra, B. N. K., Sudja, I. N., & Martini, L. K. B. (2018). The effect of job characteristics and compensation to work satisfaction and organization commitment on all lpd kerambitan tabanan. International Journal of Contemporary Research and Review, 9(03), 20572–20582. https://doi.org/10.15520/ijcrr/2018/9/03/462
Rehman, S., Shareef, A., Mahmood, A., & Ishaque, A. (2012). Perceived leadership styles and organizational commitment. Interdisciplinary Journal of Contemporary Research in Business, 4(1), 616–626.
Shortland, S. (2018). What seals the deal? How compensation and benefits affect women’s decisions to accept expatriation in the oil and gas industry. Personnel Review, 47(3), 765–783. https://doi.org/10.1108/PR-11-2016-0294
Smith, P., Kendall, L. ., & Hullin, C. (1969). Measurement of Satisfaction in Work and Retirement. Chicago: Rand McNally.
Spector, P. E. (1997). Job Satisfaction. Application, assessment, causes, and consequences. Thousand Oaks, California: Sage Publications, Inc.
Stazyk, E. C., Pandey, S. K., & Wright, B. E. (2011). Understanding Affective Organizational Commitment: The Importance of Institutional Context. The American Review of Public Administration, 41(6), 603–624. https://doi.org/10.1177/0275074011398119
Suri, M., & Petchsawang, P. (2018). Relationship between job satisfaction, organizational commitment and demographic factors in private banking sector in Bangkok. International Journal of Business & Economics, 10(2), 167–189.
Warokka, A., & Febrilia, I. (2015). Work-family conflict and job performance: Lesson from a Southeast Asian emerging market. Journal of Southeast Asian Research, 2015(2015), 1–14. https://doi.org/10.5171/2015.420802
Weiss, D. J., Dawis, R. V, & England, G. W. (1967). Manual for the Minnesota satisfaction questionnaire. Minnesota Studies in Vocational Rehabilitation, 22, 120.
Andrianti, I. G. A. T., Herawati, N. T., AK, S. E., & Purnamawati, I. G. A. (2016). Pengaruh Kompetensi, Independensi Dan Komitmen Organisasi Auditor Terhadap Kinerja Auditor (Studi Pada Tiga Inspektorat Provinsi Bali). JIMAT (Jurnal Ilmiah Mahasiswa Akuntansi) Undiksha, 4(1).
Ashraf, M. A. (2020). Demographic factors, compensation, job satisfaction and organizational commitment in private university: an analysis using SEM. Journal of Global Responsibility, 11(4), 407–436. https://doi.org/10.1108/JGR-01-2020-0010
Bashir, M., Jianqiao, L., Zhao, J., Ghazanfar, F., & Khan, M. M. (2011). The role of demographic factors in the relationship between high performance work system and job satisfaction: A multidimensional approach. International Journal of Business and Social Science, 2(18), 207–218.
Bibby, C. L. (2008). Should I Stay or Should I Leave? Perceptions of Age Discrimination, Organizational Justice, and Employee Attitudes on Intentions to Leave. The Journal of Applied Management and Entrepreneurship, 13(2), 63–86.
Cantiello, J., Fottler, M. D., Oetjen, D., & Zhang, N. J. (2015). The impact of demographic and perceptual variables on a young adult’s decision to be covered by private health insurance. BMC Health Services Research, 15(1), 1–15. https://doi.org/10.1186/s12913-015-0848-6
Chiu, R. K., Wai‐Mei Luk, V., & Li‐Ping Tang, T. (2002). Retaining and motivating employees. Personnel Review, 31(4), 402–431. https://doi.org/10.1108/00483480210430346
Chordiya, R., Sabharwal, M., & Goodman, D. (2017). Affective Organizational Commitment and Job Satisfaction: A Cross-National Comparative Study. Public Administration, 95(1), 178–195. https://doi.org/10.1111/padm.12306
Colarelli, S. M., & Bishop, R. C. (1990). Career Commitment: Functions, Correlates, and Management. Group & Organization Studies, 15(2), 158–176. https://doi.org/10.1177/105960119001500203
Daniel, C. O. (2019). Compensation management and its impact on organizational commitment. International Journal of Contemporary Applied Researches, 6(2), 26–36.
Donner, W., & Rodríguez, H. (2008). Population composition, migration and inequality: The influence of demographic changes on disaster risk and vulnerability. Social Forces, 87(2), 1089–1114. https://doi.org/10.1353/sof.0.0141
Eleswed, M., & Mohammed, F. (2013). The impact of gender, age, years of experience, education level, and position type on job satisfaction and organizational commitment: An exploratory study in the kingdom of Bahrain. International Journal of Business and Social Science, 4(11), 108–119.
Feraro-Banta, L., & Shaikh, S. Al. (2017). Relation of Compensation and Benefits on Employees’ Performance: A Study of Audit Firms in Bahrain. International Advanced Research Journal in Science, Engineering and Technology, 4(5), 175–183. https://doi.org/10.17148/IARJSET.2017.4533
Gunlu, E., Aksarayli, M., & Şahin Perçin, N. (2010). Job satisfaction and organizational commitment of hotel managers in Turkey. International Journal of Contemporary Hospitality Management, 22(5), 693–717. https://doi.org/10.1108/09596111011053819
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Thousand Oaks, California: Sage Publications, Inc.
Heidarian, A. R., Jafari Kelarijani, S. E., Jamshidi, R., & Khorshidi, M. (2015). The relationship between demographic characteristics and motivational factors in the employees of social security hospitals in Mazandaran. Caspian Journal of Internal Medicine, 6(3), 170–174. https://pubmed.ncbi.nlm.nih.gov/26644886
Ibrahim, I. I., & Boerhaneoddin, A. (2010). Is job satisfaction mediating the relationship between compensation structure and organisational commitment? A study in the Malaysian power utility. Journal of Global Business and Economics, 1(1), 43–61.
Jerrim, J. (2011). Do UK Higher Education Students Overestimate Their Starting Salary?*. Fiscal Studies, 32(4), 483–509. https://doi.org/10.1111/j.1475-5890.2011.00148.x
Jurik, N. C., Halemba, G. J., Musheno, M. C., & Boyle, B. V. (1987). Educational Attainment, Job Satisfaction, and the Professionalization of Correctional Officers. Work and Occupations, 14(1), 106–125. https://doi.org/10.1177/0730888487014001006
Khan, M., Tarif, A., & Zubair, D. S. S. (2016). Non-financial incentive system and organizational commitment: An empirical investigation. Pakistan Business Review (ISSN: 1561-8706), 18(1), 55–75.
Kielerstajn, R. (2008). Age and work motivation: The view of older employees’. Sweden: Theses, Department of Education and Psychology, University of Gävle.
Kinicki, A., & Kreitner, R. (2007). Employee Behavior. New York: McGraw-Hill.
Konya, V., Matić, D., & Pavlović, J. (2016). The influence of demographics, job characteristics and characteristics of organizations on employee commitment. Acta Polytechnica Hungarica, 13(3), 119–138.
Levina, N., & Xin, M. (2007). Comparing IT workers’ compensation across country contexts: Demographic, human capital, and institutional factors. Information Systems Research, 18(2), 193–210.
Lincoln, J., & Kalleberg, A. (1990). Culture, Control and Commitment: A Study of Work Organization and Work Attitudes in the United States and Japan. Cambridge: Cambridge University Press.
Lok, P., & Crawford, J. (2004). The effect of organisational culture and leadership style on job satisfaction and organisational commitment. Journal of Management Development, 23(4), 321–338. https://doi.org/10.1108/02621710410529785
Mondy, W., Noe, M., & Premeaux, R. (1999). Human Resources Management. New Jersey: Prentice Hall.
Mount, G. (2006). The role of emotional intelligence in developing international business capability: EI provides traction. In Linking emotional intelligence and performance at work: Current research evidence with individuals and groups. Mahwah, NJ: Erlbaum.
Mowday, R. T., Porter, L. W., & Steers, R. M. (1982). Employee-organizational linkages: The psychology of commitment, absenteeism, and turnover. New York: Academic Press.
Mowday, R. T., Steers, R. M., & Porter, L. W. (1979). The measurement of organizational commitment. Journal of Vocational Behavior, 14(2), 224–247. https://doi.org/10.1016/0001-8791(79)90072-1
Mwesigwa, R., Tusiime, I., & Ssekiziyivu, B. (2020). Leadership styles, job satisfaction and organizational commitment among academic staff in public universities. Journal of Management Development, 39(2), 253–268. https://doi.org/10.1108/JMD-02-2018-0055
Nasution, D. A. D. (2019). The Effect of Implementation Islamic Values and Employee Work Discipline on The Performance of Moslem Religious Employees at Regional Financial Management in the North Sumatera Provincial Government. International Halal Conference & Exhibition 2019 (IHCE), 1(1), 1–7.
Nasution, M. I., Prayogi, M., Jufrizen, J., Pulungan, D. R., & Juliandi, A. (2019). Compensation and Organizational Commitment: The Mediating Role of Job Satisfaction. 2nd International Conference On Advance And Scientific Innovation, ICASI 2019. https://doi.org/10.4108/eai.18-7-2019.2288578
Oliveira, P. N., & Rowe, D. E. O. (2018). Organizational commitment in the public sector: review and research agenda. Revista Pensamento Contemporâneo Em Administração, 12(2), 43–53. https://doi.org/10.12712/rpca.v12i2.1259
Peltokorpi, V., Allen, D. G., & Froese, F. (2015). Organizational embeddedness, turnover intentions, and voluntary turnover: The moderating effects of employee demographic characteristics and value orientations. Journal of Organizational Behavior, 36(2), 292–312. https://doi.org/https://doi.org/10.1002/job.1981
Pratomo, W. A., Suwandi, & Warokka, A. (2013). The Linkages of Financial Liberalization and Currency Stability: What do we learn from Pre and Post Asian Financial Crisis? Journal of Economics Studies and Research, 2013, 1–9. https://doi.org/10.5171/2013.235134
Putra, B. N. K., Sudja, I. N., & Martini, L. K. B. (2018). The effect of job characteristics and compensation to work satisfaction and organization commitment on all lpd kerambitan tabanan. International Journal of Contemporary Research and Review, 9(03), 20572–20582. https://doi.org/10.15520/ijcrr/2018/9/03/462
Rehman, S., Shareef, A., Mahmood, A., & Ishaque, A. (2012). Perceived leadership styles and organizational commitment. Interdisciplinary Journal of Contemporary Research in Business, 4(1), 616–626.
Shortland, S. (2018). What seals the deal? How compensation and benefits affect women’s decisions to accept expatriation in the oil and gas industry. Personnel Review, 47(3), 765–783. https://doi.org/10.1108/PR-11-2016-0294
Smith, P., Kendall, L. ., & Hullin, C. (1969). Measurement of Satisfaction in Work and Retirement. Chicago: Rand McNally.
Spector, P. E. (1997). Job Satisfaction. Application, assessment, causes, and consequences. Thousand Oaks, California: Sage Publications, Inc.
Stazyk, E. C., Pandey, S. K., & Wright, B. E. (2011). Understanding Affective Organizational Commitment: The Importance of Institutional Context. The American Review of Public Administration, 41(6), 603–624. https://doi.org/10.1177/0275074011398119
Suri, M., & Petchsawang, P. (2018). Relationship between job satisfaction, organizational commitment and demographic factors in private banking sector in Bangkok. International Journal of Business & Economics, 10(2), 167–189.
Warokka, A., & Febrilia, I. (2015). Work-family conflict and job performance: Lesson from a Southeast Asian emerging market. Journal of Southeast Asian Research, 2015(2015), 1–14. https://doi.org/10.5171/2015.420802
Weiss, D. J., Dawis, R. V, & England, G. W. (1967). Manual for the Minnesota satisfaction questionnaire. Minnesota Studies in Vocational Rehabilitation, 22, 120.
Published
2022-06-09
How to Cite
Isnarti Trisnawati, Anita Erari, & Siti Aisyah. (2022). Effects of Demographic Factors, Compensation, Job Satisfaction on Organizational Commitment (A Study on the Inspectorate Office of Merauke and Boven Digoel Regency). Britain International of Humanities and Social Sciences (BIoHS) Journal, 4(2), 177-193. https://doi.org/10.33258/biohs.v4i2.648
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