The Influence of Compensation and Career Development on Employees' Organizational Commitment in Class III UPBU Offices in the Merauke Region

Main Article Content

Endah Iswahyuni Rina Astuti
Nurmala Pangaribuan
Elly Noer

Abstract

This quantitative research with a causality analysis approach investigates the effects of compensation, career development, and job satisfaction on organizational commitment. A sample of 148 Class III UPBU office employees in the Merauke region participated. Data was collected through questionnaires on a 5-point Likert scale and analyzed using path analysis. The results showed that compensation positively affects job satisfaction but not directly impact organizational commitment. Career development was also found to have a positive effect on both job satisfaction and organizational commitment. Finally, job satisfaction was positively linked to organizational commitment and mediated the relationship between compensation/career development and organizational commitment.

Downloads

Download data is not yet available.

Article Details

How to Cite
Iswahyuni Rina Astuti, E., Nurmala Pangaribuan, & Elly Noer. (2024). The Influence of Compensation and Career Development on Employees’ Organizational Commitment in Class III UPBU Offices in the Merauke Region. Economit Journal: Scientific Journal of Accountancy, Management and Finance, 4(1), 52-67. https://doi.org/10.33258/economit.v4i1.1089
Section
Articles

References

Aboramadan, M., Albashiti, B., Alharazin, H., & Dahleez, K. A. (2020). Human resources management practices and organizational commitment in higher education. International Journal of Educational Management, 34(1), 154–174. https://doi.org/10.1108/IJEM-04-2019-0160
Abu-Shamaa, R., Al-Rabayah, W. A., & Khasawneh, R. T. (2015). The effect of job satisfaction and work engagement on organizational commitment. IUP Journal of Organizational Behavior, 14(4), 7–27.
Adekola, B. (2011). Career planning and career management as correlates for career development and job satisfaction. A case study of Nigerian Bank Employees.“. Australian Journal of Business and Management Research, 1(2), 100–112.
Akdere, M., & Egan, T. (2020). Transformational leadership and human resource development: Linking employee learning, job satisfaction, and organizational performance. Human Resource Development Quarterly, 31(4), 393–421. https://doi.org/10.1002/hrdq.21404
Al Adresi, A., & Darun, M. R. (2017). Determining relationship between strategic human resource management practices and organizational commitment. International Journal of Engineering Business Management, 9, 1847979017731669. https://doi.org/10.1177/1847979017731669
Aman-Ullah, A., Aziz, A., Ibrahim, H., Mehmood, W., & Aman-Ullah, A. (2023). The role of compensation in shaping employee’s behaviour: a mediation study through job satisfaction during the Covid-19 pandemic. Revista de Gestão, 30(2), 221–236. https://doi.org/10.1108/REGE-04-2021-0068
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
Baruch, Y. (2004). Transforming careers: from linear to multidirectional career paths. Career Development International, 9(1), 58–73. https://doi.org/10.1108/13620430410518147
Bashir, B., & Gani, A. (2020). Testing the effects of job satisfaction on organizational commitment. Journal of Management Development, 39(4), 525–542. https://doi.org/10.1108/JMD-07-2018-0210
Button, K., Doh, S., & Yuan, J. (2010). The role of small airports in economic development. Journal of Airport Management, 4(2), 125–136.
Chen, T.-Y., Chang, P.-L., & Yeh, C.-W. (2004). An investigation of career development programs, job satisfaction, professional development and productivity: the case of Taiwan. Human Resource Development International, 7(4), 441–463. https://doi.org/10.1080/1367886042000246049
Cherif, F. (2020). The role of human resource management practices and employee job satisfaction in predicting organizational commitment in Saudi Arabian banking sector. International Journal of Sociology and Social Policy, 40(7/8), 529–541. https://doi.org/10.1108/IJSSP-10-2019-0216
Chinyio, E., Suresh, S., & Salisu, J. B. (2018). The impacts of monetary rewards on public sector employees in construction. Journal of Engineering, Design and Technology, 16(1), 125–142. https://doi.org/10.1108/JEDT-12-2016-0098
Chong, V. K., & Law, M. B. C. (2016). The effect of a budget-based incentive compensation scheme on job performance. Journal of Accounting & Organizational Change, 12(4), 590–613. https://doi.org/10.1108/JAOC-02-2015-0024
Christiana, A. (2017). Pengaruh Gaji dan Insentif terhadap Kinerja Pegawai Di Kantor Unit Penyelenggara Bandar Udara (UPBU) H. Asan Sampit. Profit (Jurnal Penerapan Ilmu Manajemen Dan Kewirausahaan), 2(1), 1–10.
Cooper, C. L., & Locke, E. A. (2000). Industrial and Organizational Psychology: Linking Theory with Practice. Blackwell Business.
Cottrell, J. M., & Barrett, C. A. (2016). Job Satisfaction Among Practicing School Psychologists: the Impact of SLD Identification. Contemporary School Psychology, 20(1), 21–30. https://doi.org/10.1007/s40688-015-0076-4
Duffield, C., Baldwin, R., Roche, M., & Wise, S. (2014). Job enrichment: creating meaningful career development opportunities for nurses. Journal of Nursing Management, 22(6), 697–706. https://doi.org/10.1111/jonm.12049
Ergün, N., Açıkel, B. Y., & Turhan, U. (2017). The appropriateness of today’s airport security measures in safeguarding airline passengers. Security Journal, 30(1), 89–105. https://doi.org/10.1057/sj.2014.41
Hamzah, H., Hubeis, M., & Hendri, I. (2020). the Effect of Career Development, Justice Organization and Quality of Work Life To Organizational Commitment and Implications To Organizational Citizenship Behavior of Employees At Pt. Perkebunan Nusantara Xiii. International Review of Management and Marketing, 10(3), 101–109. https://doi.org/10.32479/irmm.10002
Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. In Journal of Applied Psychology (Vol. 87, Issue 2, pp. 268–279). American Psychological Association. https://doi.org/10.1037/0021-9010.87.2.268
Hermingsih, A., & Purwanti, D. (2020). Pengaruh Kompensasi dan Beban Kerja Terhadap Kepuasan Kerja Dengan Motivasi Kerja sebagai Variabel Pemoderasi. Jurnal Dimensi, 9(3).
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.
Ikasari, A., Askafi, E., & Baehaki, I. (2022). Analisis Pengembangan Karir Dan Budaya Organisasi, Terhadap Komitmen Organisasi Dengan Kepuasan Kerja Sebagai Variabel Intervening Pada PT Jasa Raharja Cabang Utama Jawa Timur. Otonomi, 22(1), 80–89.
Jacobs, R., & Washington, C. (2010). Employee development and organizational performance: a review of literature and directions for future research. Human Resource Development International, 6(3), 343–354. https://doi.org/10.1080/13678860110096211
Jena, L., & Nayak, U. (2023). Organizational career development and retention of millennial employees: role of job satisfaction, organizational engagement and employee empowerment. International Journal of Organization Theory & Behavior, 26(1/2), 115–131. https://doi.org/10.1108/IJOTB-08-2022-0159
Jones, R., & Kim, Y.-K. (2011). Single-brand retailers: Building brand loyalty in the off-line environment. Journal of Retailing and Consumer Services, 18(4), 333–340. https://doi.org/10.1016/j.jretconser.2011.02.007
Kaya, C., & Ceylan, B. (2014). An empirical study on the role of career development programs in organizations and organizational commitment on job satisfaction of employees. American Journal of Business and Management, 3(3), 178–191.
Kirschenbaum, A. (Avi). (2015). The social foundations of airport security. Journal of Air Transport Management, 48, 34–41. https://doi.org/10.1016/j.jairtraman.2015.06.010
Kitsios, F., & Kamariotou, M. (2021). Job satisfaction behind motivation: An empirical study in public health workers. Heliyon, 7(4), 1–8. https://doi.org/10.1016/j.heliyon.2021.e06857
Knezović, E., & Greda, N. (2021). Career development and affective commitment: a comparative study of family and nonfamily businesses. Journal of Family Business Management, 11(4), 462–478. https://doi.org/10.1108/JFBM-04-2020-0033
Kohlmeyer, J. M., Parker, R. J., & Sincich, T. (2017). Career-Related Benefits and Turnover Intentions in Accounting Firms: The Roles of Career Growth Opportunities, Trust in Superiors, and Organizational Commitment. In Advances in Accounting Behavioral Research (Vol. 20, pp. 1–21). Emerald Publishing Limited. https://doi.org/10.1108/S1475-148820170000020001
Kundi, Y. M., Aboramadan, M., Elhamalawi, E. M. I., & Shahid, S. (2021). Employee psychological well-being and job performance: exploring mediating and moderating mechanisms. International Journal of Organizational Analysis, 29(3), 736–754. https://doi.org/10.1108/IJOA-05-2020-2204
Lyons, P., & Bandura, R. P. (2019). Case-based modeling: fostering expertise development and small group learning. European Journal of Training and Development.
Mahmood, A., Akhtar, M. N., Talat, U., Shuai, C., & Hyatt, J. C. (2019). Specific HR practices and employee commitment: the mediating role of job satisfaction. Employee Relations: The International Journal, 41(3), 420–435. https://doi.org/10.1108/ER-03-2018-0074
McDonald, K. S., & Hite, L. M. (2005). Reviving the Relevance of Career Development in Human Resource Development. Human Resource Development Review, 4(4), 418–439. https://doi.org/10.1177/1534484305281006
Meyer, J. P., & Herscovitch, L. (2001). Commitment in the workplace: toward a general model. Human Resource Management Review, 11(3), 299–326. https://doi.org/https://doi.org/10.1016/S1053-4822(00)00053-X
Mohd Nasurdin, A., Tan, C. L., & Naseer Khan, S. (2020). Can high performance work practices and satisfaction predict job performance?An examination of the Malaysian private health-care sector. International Journal of Quality and Service Sciences, 12(4), 521–540. https://doi.org/10.1108/IJQSS-06-2019-0090
Naidu, A. T., & Satyanarayana, G. (2018). Impact of compensation on employee performance. Intercontinental Journal of Human Resource Research Review, 6(4), 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, 1–10. https://doi.org/10.4108/eai.18-7-2019.2288578
Osibanjo, O. A., Adeniji, A. A., Falola, H. O., & Heirsmac, P. T. (2014). Compensation packages: a strategic tool for employees’ performance and retention. Leonardo Journal of Sciences, 25(1), 65–84.
Özbilgin, M., & Healy, G. (2004). The gendered nature of career development of university professors: the case of Turkey. Journal of Vocational Behavior, 64(2), 358–371. https://doi.org/10.1016/j.jvb.2002.09.001
Permana, A., Aima, M., Ariyanto, E., Nurmahdi, A., Sutawidjaya, A., & Endri, E. (2021). The effect of compensation and career development on lecturer job satisfaction. Accounting, 7(6), 1287–1292.
Sady, K., Aamodt, M. G., & Cohen, D. (2015). Compensation Equity: Who, What, When, Where, Why, and How BT - Practitioner’s Guide to Legal Issues in Organizations. In C. Hanvey & K. Sady (Eds.), Practitioner’s Guide to Legal Issues in Organizations (pp. 249–282). Springer International Publishing. https://doi.org/10.1007/978-3-319-11143-8_10
Shafiq, M., Zia-ur-Rehman, D. M., & Rashid, M. (2013). Impact of Compensation, Training and Development and Supervisory Support on Organizational Commitment. Compensation & Benefits Review, 45(5), 278–285. https://doi.org/10.1177/0886368713515965
Shaw, J. D., Duffy, M. K., & Stark, E. M. (2000). Interdependence and preference for group work: main and congruence effects on the satisfaction and performance of group members. Journal of Management, 26(2), 259–279. https://doi.org/10.1016/S0149-2063(99)00045-8
naiduSilaban, N., & Syah, T. Y. R. (2018). The influence of compensation and organizational commitment on employees’ turnover intention. IOSR Journal of Business and Management, 20(3), 1–6. https://doi.org/10.9790/487X-2003010106
Smith, P. ., Kendall, L. ., & Hulin, C. . (1969). The Measurement of Satisfaction in Work and Retirement. Rand McNally.
Sundaray, B. K. (2011). Employee engagement: a driver of organizational effectiveness. European Journal of Business and Management, 3(8), 53–59.
Taba, M. I. (2018). Mediating effect of work performance and organizational commitment in the relationship between reward system and employees’ work satisfaction. Journal of Management Development, 37(1), 65–75. https://doi.org/10.1108/JMD-11-2016-0256
Williams, M. L., Brower, H. H., Ford, L. R., Williams, L. J., & Carraher, S. M. (2008). A comprehensive model and measure of compensation satisfaction. Journal of Occupational and Organizational Psychology, 81(4), 639–668. https://doi.org/10.1348/096317907X248851
Yang, F.-H., Wu, M., Chang, C.-C., & Chien, Y. (2011). Elucidating the Relationships among Transformational Leadership, Job Satisfaction, Commitment Foci and Commitment Bases in the Public Sector. Public Personnel Management, 40(3), 265–278. https://doi.org/10.1177/009102601104000306
Yarbrough, S., Martin, P., Alfred, D., & McNeill, C. (2016). Professional values, job satisfaction, career development, and intent to stay. Nursing Ethics, 24(6), 675–685. https://doi.org/10.1177/0969733015623098
Zhang, Y., Ridings, C., & Semenov, A. (2022). What to post? Understanding engagement cultivation in microblogging with big data-driven theory building. International Journal of Information Management. https://doi.org/10.1016/j.ijinfomgt.2022.102509
Zhou, F., & Liu, Y. (2022). Blockchain-Enabled Cross-Border E-Commerce Supply Chain Management: A Bibliometric Systematic Review. Sustainability (Switzerland), 14(23). https://doi.org/10.3390/su142315918