Organizational Commitment and Compensation Effects on Employee Performance through Work Motivation at PT Karsavicta Satya

Purpose: This study examines the effects of work commitment and compensation on employee performance, with work motivation as an intervening variable at PT Karsavicta Satya.
Research Methodology: A quantitative cross-sectional design was employed. The study involved all 112 employees of PT Karsavicta Satya using a census sampling technique. Data were collected through questionnaires and analyzed using Structural Equation Modeling (SEM) with AMOS to examine the direct and indirect relationships among work commitment, compensation, work motivation, and employee performance.
Results: The findings reveal that work commitment and compensation positively and significantly affect employee performance. Work motivation also has a positive and significant effect on employee performance. In addition, work commitment and compensation significantly enhance work motivation. Mediation analysis confirms that work motivation significantly mediates the relationships between work commitment and employee performance, as well as between compensation and employee performance.
Conclusion: Employee performance can be improved by strengthening work commitment, providing appropriate compensation, and enhancing work motivation, which serves as a key mechanism linking organizational practices to performance outcomes.
Limitations: The study is limited to a single organization, which may reduce the generalizability of the findings. Future studies should include broader samples and additional variables such as leadership style, organizational culture, and work environment.
Contributions: This study enriches the human resource management literature by providing empirical evidence on the mediating role of work motivation in the relationships between work commitment, compensation, and employee performance.