The Effect of Motivation and Compensation on Job Performance
through Job Satisfaction of Vocational Higher Education Lecturers in
East Kalimantan
Suminto, Damar Nurcahyono, Kristin Wulansari, Della Olivia Caterina Kalangit
Business Administration, Information Technology, Politeknik Negeri Samarinda, Jl. Cipto Mangunkusumo, Samarinda,
Indonesia
Keywords: Motivation, Compensation, Job Satisfaction, Job Performance, Lecturer
Abstract: This research aims to analyze and prove the effect of motivation and compensation directly on Job
Performance and indirectly through Job Satisfaction of Vocational Higher Education lecturers in East
Kalimantan. Primary data were collected through questionnaire distribution designed with Likert scale to
259 students, fellow lecturers, and leaders. Analysis of the data collected using multivariate linear
regression analysis with the AMOS program Structural Equation Model as a tool. The analysis revealed that
motivation directly had a significant positive effect on Job Performance and indirectly through Job
Satisfaction. Meanwhile, indirect compensation through Job Satisfaction has a significant positive effect,
but indirectly has no significant effect on Job Performance. The implication of this research is that increased
motivation encourages the creation of Job Satisfaction and Has an effect on the increase of Job
Performance. Meanwhile, the increase in compensation can encourage an increase in Job Satisfaction but it
does not necessarily increase the Job Performance of Vocational Higher Education lecturers in East
Kalimantan. Job Satisfaction is able to be a good mediator in the realization of Job Performance or in other
words job satisfaction is a prerequisite for achieving Job performance.
1 INTRODUCTION
This Higher education is one of the educational
institutions in the national education system. Under
Law No 20 of 2003 concerning the National Education
System, higher education institutions are obliged to
provide education, research and community service
(Depdiknas, 2003). Lecturers are an important
component of a vocational colleges, so that the quality
of their performance needs to be maintained. Matter
that affect lecturer performance do not only come from
variables related to the learning process, but also from
other variables such as motivation, leadership style,
organizational culture, organizational climate,
compensation, job satisfaction. The following are the
research results (Mariani et al., 2017) state that
leadership, organizational climate, motivation have a
significant positive effect partially and simultaneously
on employee performance. While compensation and
job satisfaction mediated by Organizational
commitment has a significant positive impact on the
performance of lecturers (Zain et al., 2017). The
research resuts
(Arifin, 2017) shows compensation does not
have a significant impact on results, work
satisfaction has a significant effect on performance.
Meanwhile, compensation and job satisfaction have
no effect on the performance of lecturers. Effect of
motivation on the performance of lecturers at the
institute of social and political science (IISIP) Yapis
Biak. (Handayani, 2019) stated that motivation
influenced the performance of lecturers. Therefore,
the results of researchers show inconsistencies in
results, so in this case, there is still a research gap.
There are five variables in this paper: motivation,
compensation as independent variable, job
performance as intervening, job performance as
dependent variable. Each variable came from
(Robbins &Timothy, 2009) "Motivating, in an
organizational context, it is the process of working
to achieve organizational goals as a means of
meeting their own personal wishes" and "job
satisfaction: positive feelings about one's job
resulting from the evaluation of its characteristics".
(Masruroh et al, 2012) Compensation is one of the
78
Suminto, ., Nurcahyono, D., Wulansari, K. and Caterina Kalangit, D.
The Effect of Motivation and Compensation on Job Performance through Job Satisfaction of Vocational Higher Education Lecturers in East Kalimantan.
DOI: 10.5220/0010532100780084
In Proceedings of the 9th Annual Southeast Asian International Seminar (ASAIS 2020), pages 78-84
ISBN: 978-989-758-518-0
Copyright
c
2021 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
dominant factors in encouraging someone to
improve performance. An employee achieves
performance outcomes of the duties assigned to
employee (Ismaini & Gunawan, 2019).
2 LITERATURE REVIEW
2.1 Definition of Motivation
(Lecturer, 2018) the term motivation comes from
the word "mover" in Latin, which implies
encouragement or movement. Motivation is a state
that moves a worker who is guided or directed to
accomplish the organizational objectives of the
business. Employees who are pro and optimistic
towards the job situation are encouraged to reach
optimum efficiency through their mental attitude.
(Harwiki, 2016) in comparison, workers do not have
the spirit of work, readily give up, and trouble
completing their job with poor job motivation.
According to (Isahrabiu, 2018) the cause of
behaviour is reason, the motivation of an individual,
conscious or unconscious, arises from his needs. It
can also be argued that motivation or need is an
internal condition, deprivation that induces a person
to do something while evaluating motivation.
Furthermore (Wang et al., 2016) in a person who
supports an individual's desire to undertake such
tasks in order to accomplish goals, motivation is a
personal condition. The desire that resides in
someone is therefore a guiding force that will
realize a behaviour in order to achieve its fulfilment
goals. Motivation indicators used in this study refer
to (Siagian, 2008) as 1) driving force, 2)
willingness, 3) eagerness, 4) forming expertise, 5)
forming skills, 6) responsibility, 7) obligations and
8) goals.
2.2 Definition of Compensation
Martocchio (2015) said that compensation is an
intrinsic and extrinsic reward received by employee
after they done their work. Futhermore (Mondy &
Wayne, 2008) the cumulative remuneration earned
by the employee as a replacement for the services
they render is compensation. Compensation is
adequately provided and the workers are more
fulfilled and driven to accomplish the organization's
objectives. In addition, compensation is also a
custodian to stay afloat. Providing appropriate
compensation in tertiary institutions will attract
quality people to join, retain qualified lecturers, and
motivate lecturers to improve performance.
Therefore, Compensation is all income earned by
employees directly or indirectly in exchange for
services rendered to the institution in the form of
money or products. Awards received by lecturers in
any form are closely related to the job satisfaction
of a lecturer. Indicators of direct and indirect
compensation used are 1) salary or wage, 2)
allowances, 3) incentives, 4) facilities, 5) services.
2.3 Definition of Job Satisfaction
Job satisfaction is the subjective point of view of a
person encompassing the way he/she feels about
his/her job and the organization employed. In
addition, work satisfaction is the good emotional
state arising from the accomplishment of job values.
(Cronley and Kim, 2017). When lecturers feel
satisfied with their work, they prefer to execute and
complete tasks with all their skills. (Siagian, 2002)
says that a person feels satisfied in his job because
he/she realizes that what he has achieved is
maximal. There are positive feelings about their job
for someone with a high level of job satisfaction.
Therefore, job satisfaction is the result of interaction
between humans and the work environment, where
the internal and external organizational environment
is a factor that shapes the organizational climate.
2.4 Definition of Job Performance
According to (Al Mehrzi and Singh, 2016) Job
performance is the outcome or degree of an
individual as a whole's performance in performing
activities over a given period of time relative to
different possibilities, such as job standards,
objectives or targets or predetermined mutually
accepted criteria. In addition (Yang et al., 2016)
state that performance is simply what workers do or
do not do. (Ismaini & Gunawan, 2019) Performance
results are achieved by an employee of the
responsibilities that has delegated to employee.
Furthermore, according to (Ursa, 2007) suggesting
performance indicators include 1) job efficiency is
how well an employee does what needs to be done.
2) job quantity is how long in one day an employee
works. This amount of work can be seen from the
respective work pace of each employee. 3) Duties
implementation is the extent to which employees are
able to do their work accurately or without errors.
4). Responsibility for work is knowledge of the
duties of workers to carry out the work provided.
The Effect of Motivation and Compensation on Job Performance through Job Satisfaction of Vocational Higher Education Lecturers in East
Kalimantan
79
2.5 Previous Research
The results of previous research (Veronika, 2018)
entitled The effect of compensation and job
motivation on employee performance with job
satisfaction as a mediating factor: a study at the
Directorate General of Taxes Regional Offices of
Bali, the finding showed that Compensation and Job
motivation had a significant effect toward employee
performance, furthermore, job satisfaction had a
significant effect toward employee performance,
and job satisfaction had a significant effect towards
employee performance. (Setiadi et al., 2016) in their
research entitled At Semen Indonesia Limited
Company, the impact of compensation and work
motivation on employee performance shows that:
1) compensation, work motivation are positive and
significant in employee performance at the same
time; 2) compensation, work motivation are positive
and significant in employee performance; 3) work
motivation has a dominant effect on employee
performance. Other research from (Raka et al.,
2018): 1) motivation has a positive and important
impact on the performance of the employee;
2) motivation has a positive and significant impact
on job satisfaction; 3) job satisfaction has a positive
and significant impact on the performance of the
employee; 4)motivation has a positive and
significant impact on performance through job
satisfaction. The problem is whether the effect on
work satisfaction and success of motivation and
compensation also applies to lecturers of Vocational
Higher Education in East Kalimantan? For this
reason, this research has been conducted to analyze
whether or not there is a direct and indirect
influence on motivation and compensation variables
on job satisfaction and performance. The hypothesis
is
H
1: Motivation has a major effect on job satisfaction
H
2: Motivation has a major effect on the
performance
H
3: Compensation has a major effect on job
satisfaction
H
4: Compensation has a major effect on the
performance
H
5: Job Satisfaction has a major effect on the
performance
3 RESEARCH METHOD
3.1 Types of Data
The data that was used are primary data obtained
through questionnaire distribution to respondents:
fellow lecturers, students, and superiors at
Samarinda State Polytechnic, Samarinda State
Agricultural Polytechnic, and Balikpapan State
Polytechnic. The sample was 259 respondents,
using the Slovin (1967) in (Sugiyono, 2012) with an
error rate of 5% and Likert scale of 1-5.
3.2 Analysis Method
The collected data were then analyzed by
multivariate linear regression of the Structural
Equation Model (SEM) used, tool which was
operated through the AMOS 23 program. Test the
validity and reliability of the instrument used with a
valid measure, seen from the value of r> 30. An
instrument is declared reliable if the minimum
reliability coefficient is 0.60. It can be inferred, on
the basis of the above opinion, that an instrument is
declared reliable if the value for negligence is>
0.60, while an instrument is declared unreliable if
the value for negligence is <0.60, this refers to the
opinion (Sugiyono, 2012). Assumption Test for
SEM which includes Normality, Linearity,
Multicollinearity tests. Confirmatory analysis test
on SEM is used to confirm the most dominant
factors in a group of variables. The goodness of fit
of the model test, and hypothesis Test
3.3 Variables and Indicators
The exogenous variable is Motivation (X1) with
indicators that adopt (Siagian, 2008) which consists
of X1.1 driving force, X1.2 Willingness, X1.3
Eagerness, X1.4 Forming Expertise, X1.5 Forming
Skills, X1.6 Responsibilities, X1.7 Obligations,
X1.8 Objectives. The second exogenous variable is
Compensation (X2) measured by indicators
consisting of X2.1 Salary or wages, X2.2.
Allowances, X2.3 Incentives, X2.4 Facilities, X2.5
Services. Meanwhile, the intervening variable is Job
Satisfaction (Y1) measured by the indicators used
by (Viethzal, 2014): Y1.1 likes work, Y1.2 loves
work, Y1.3 positive work morale, Y1.4 Work
discipline, Y1. 5 Job Performance. The endogenous
variable is Job Performance (Y2) measured by
indicators adopted from (Mitchel & Larson, 1987)
in (Riduan, 2009): Y2.1 Ability, Y2.2 Initiative,
ASAIS 2020 - Annual Southeast Asian International Seminar
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Y2.3 Timeliness, Y2.4 Quality of work, Y2.5
Communication.
4 RESULT AND DISCUSSION
4.1 Validity and Reliability
The pilot test was carried out to test the validity and
reliability of the testing tools used in a sample of 30
respondents. The test results show that the average
of the eight motivation indicators has a correlation
coefficient of 0.744 greater than 0.30. Likewise, the
average of the five compensation indicators has a
correlation coefficient value of 0.441, greater than
0.30, and the average correlation coefficient value
of the Job Satisfaction indicator is 0.821 greater
than 0.30, and the average correlation coefficient
value of the Job Performance indicator. equal to
0.820 is greater than 0.30. This the instrument that
represents the variables used in this study is
declared valid because each of them has a
correlation coefficient> 0.30. The research
instrument is also reliable because each instrument
has a Cronbach alpha value> 0.60. This means that
the instrument can represent the research variables
so that the questionnaire can be continued up to 259
according to the predetermined number of samples.
4.2 Assumption SEM Model Test
The test results using the One-Sample Kolmogorov-
Smirnov Test show a Monte Carlo Sig (2-tailed) of
0.164, where the sig > 0.05 value, which means that
the data is normally distributed. Furthermore, pay
attention to the variance inflation factor (VIF) for
each motivation variable of 2.525, the compensation
variable of 1.386, and the Job Satisfaction variable
of 2.701, Job Performance variable of 3.277 where
each of these numbers is < 10.00, that means that
the variables are not multicollinear. Meanwhile, the
results of the Linearity Test between the variables of
motivation, compensation, and job satisfaction with
job performance from the ANOVA table show a Sig
value of 0.391 where the value of Sig > 0.05, which
means there is a linear relationship between the
research variables. The results of SEM assumption
test:data is normally distributed, no multicollinearity
between exogenous variables, and between research
variables are linearly related. This shows that it
fulfils the requirements to be continued in
hypothesis testing with multivariate linear
regression.
4.3 Goodness of Fit Model Test
The goodness Fit of model test results: the GFI value
is 0.856 close to 1.00 and with a cut of ≥ 0.90 it means
good. RMSEA of 0.070 with a cut off 0.08 means
that the smaller the better, AGFI of 0.824 is close to
1.00 with a cut of 0.90 which means good, TLI of
0.884 is close to 1.00 with a cut off of 0.95 which
means quite good, and CFI of 0.897 is close to 1.00
with a cut off 0.95 means good enough. The test
results confirm that the research model built is suitable
for testing and proving the influence between the
variables under study. The results of AMOS analysis
obtained the loading factor of each relationship
between variables and the path coefficient of each
influence between variables.
H1: Motivation has a significant effect on Job
Satisfaction, as evidenced by the CR value of 7.410
which is greater than the CR-table ± 1.96 and with a
probability value of 0.000 less than 0.05.
H2: Motivation has a significant effect on Job
Performance, as evidenced by the CR value of
3,821 which is greater than the CR-table ± 1.96 and
with a probability value of 0.033 which is smaller
than 0.05. The biggest contribution to the significant
positive influence on the motivation variable on Job
Satisfaction and Job Performance is derived from
the X1.7 obligation indicator with a loading factor
of 0.704 and followed by the second strongest is
X1.2 willingness with a loading factor of 0.665, the
third is X1.6 responsibility with loading factor of
0.663, the fourth is X1.8 with a loading factor of
0.661, and the fifth is X1.3, willingness with a
loading factor of 0.625. Meanwhile, the other three
indicators contribute with a loading factor of less
than 0.600.
H3: Compensation has a significant effect on Job
Satisfaction, as evidenced by the CR value of 3.383
which is greater than the CR-table ± 1.96 and with a
probability value of 0.000 less than 0.05. The
biggest contribution to the significant positive
influence on the compensation variable on Job
Satisfaction and Job Performance comes from the
X2.3 indicator, which is an incentive with a loading
factor of 0.735 and followed by the X2.2 indicator,
an allowance with a loading factor of 0.680. While
H4: Compensation has a significant effect on Job
Performance, it is not proven because the test results
show CR 1.298 where this value is smaller than the
CR table ± 1.96 and with a probability value (p) =
0.647> than α0.05. The CR value and the probability
indicate that compensation has no significant effect
The Effect of Motivation and Compensation on Job Performance through Job Satisfaction of Vocational Higher Education Lecturers in East
Kalimantan
81
on Job Performance. Meanwhile H5: Job
Satisfaction has a significant effect on Job
Performance, it is proven. From the test results, it
shows the CR value of 7.227 where this value is
greater than the CR table, which is ± 1.96 and with a
probability value (p) of 0.000 where this value is
<than α 0.05.
Table 1. Influence among Research Variables
Variable
Standardiz
Criti-
Proba-
Ex
p
lana
ed Path
cal
influence
b
ilit
y
-tion
Coefficient
Ratio
MV JS 0.981
7.410
***
Sig
MV JP 0.414
3.821 0.033
Sig
CP JS 0.405
3.383
***
Si
g
CP JP 0.116
1.298 0.647 Not Sig
JS JP 0.720
7.227
***
Sig
Source: Researcher’s computation 2020
The largest contribution came from the Y1.3
indicator, which is positive work morale with a
loading factor value of 0.798, and followed by the
second-largest contributor is Y1.5 indicator, namely
work performance with a loading factor of 0.744, the
third-largest contributor is Y1.1 indicator likes work
with loading factor is 0.701, and the fourth largest
contributor is Y1.4 work discipline with a loading
factor of 0.644, and the smallest contributor is Y1.2
indicator, which is loving work with a loading factor
of 0.595. In terms of the Job Performance variable,
the largest contribution came from the Y2.5
indicator for communication with a loading factor of
0.799, followed by Y2.4 Quality of work with a
loading factor of 0.728, an indicator of Y2.2
initiative with a loading factor of 0.723, and Y2.1
The loading factor is 0.721, and the smallest is Y2.3
indicator. Loading factor of time accuracy is 0.544.
The results of assumption testing and the direct
and indirect effect of motivation on Job Performance
directly or indirectly affect Job Performance.
The impact of motivation on Job Satisfaction is
stronger than the influence of motivation on the Job
Performance. These factors stimulate lecturers to
take actions that will result in the achievement of job
satisfaction and in the end, will result in high Job
Performance. This the findings in this study are that
the scope of the motivational instrument for
Vocational Higher Education lecturers in East
Kalimantan is the spirit of obligation, responsibility,
high willingness to realize, there are goals to be
achieved, willingness in its implementation.
Meanwhile, the implication is the ownership of high
lecturers' work motivation as the main capital to
achieve job satisfaction and performance.
Table 2. Direct, Indirect and Total Effect of Research
Variable
Exo
g
enous Direct Indirect Total
Variable Effect Effect Effect
Motivation 0.390 0.8383 1,2283
Com
p
ensation -0.030 0.2324 0,2024
Total
1,4307
Source: Researcher’s computation 2020
The results of hypothesis testing and the direct
and indirect effect between compensation on job
performance, directly/indirectly do not automatically
affect Job Performance.
Compensation directly has no significant effect
on Job Performance, so even though there is a total
effect between the two variables, it is mostly
supported by the indirect effect of compensation on
Job Performance through Job Satisfaction. The
increase in compensation given to lecturers cannot
automatically increase the performance of lecturers
at Vocational Higher Education in East Kalimantan.
Compensation indicators that contribute greatly are
incentives and allowances.
Teaching incentives and structural position
allowances for lecturers with relatively small
additional assignments have not been able to
improve communication quality and work quality,
initiative, and workability. This is possibly why
compensation has no significant effect on lecturer
Job Performance. This is what is new in this study
compared to previous similar studies which state
that Compensation has a significant effect on Job
Performance. The results of this study are not in line
with (Veronika, 2018) and (Setiadi et al., 2016).
Job satisfaction in this study plays an important
role in intervening between motivation and
compensation with Job Performance.
Job satisfaction can mediate well the influence of
exogenous variables with endogenous and contribute
greatly to the total effect. This means that motivation
and compensation encourage lecturers to be satisfied
so that lecturers have positive work morale, work
performance, and enjoy work more, as well as
increase work discipline. This condition is expected
to improve Job Performance.
The research model that has been modified is
illustrated in Figure 1.
ASAIS 2020 - Annual Southeast Asian International Seminar
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Figure 1: Research Model Modification
5 CONCLUSION
In this study, motivation either directly or indirectly
through Job Satisfaction has a significant positive
effect on Job Performance. Compensation directly
has no significant effect on Job Performance, while
indirectly through Job Satisfaction has a significant
positive effect. Compensation in the form of
incentives and allowances does not automatically
increase the job performance of lecturers in
vocational higher education environments in East
Kalimantan. The condition for achieving Job
Satisfaction is a prerequisite for the creation of Job
Performance for vocational higher education
lecturers in East Kalimantan. Indicators of
motivation variables that have a significant impact
on Job Satisfaction and Job Performance: obligation,
willingness, responsibility, goals, and willingness.
The compensation variable indicators that have a
significant contribution to the occurrence of a
significant effect on Job Satisfaction are incentives
and allowances. Indicators of Job Satisfaction
variables that have contributed greatly are positive
work morale, work performance, enjoyment of
work, and work discipline. Meanwhile, job
performance variable indicators that have a big
contribution are communication, work quality,
initiative, ability and punctuality.
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