Compensation and Its Impact on Motivation Employee‟s Satisfaction and Employee‟s Performance

Abstract

Human capital is the pivotal of organisational effectiveness and the most valuable asset available to an organisation is its people. The high absenteeism of employees and the lack of a sense of justice to the provision of compensation to employees is a factor that indicates th e cause of the declining motivation to work on employees that can result in the decrease of employee performance. The study aims to determine the effect of job motivation, compensation, and employee‟s satisfaction and performance. This model includes four factors; Payment Justice, Organizational designed procedures, supervisor and performance -based pay. Also Herzberg and Kitchener model has been used to measure employees‟ motivation. The present study examined the influence of compensation, Motivation, Employees satisfaction. I have used the quantitative technique correlation, regression. Compensation has significant relationship with Motivation, Employees satisfaction, and Employee performance Lack of Employees satisfaction on job can lead or restrict the employee‟s performance. Motivation has positive impact on employee performance which is proven by survey in BANSWARA and through regression method. There are many factors which motivate the employee‟s to perform; compensation can help to increase motivation, motivation help to increase job satisfaction and job satisfaction can help to increase employee performance. To conclude, Compensation is vast topic and differs for every employee, so every compensation pay satisfy each employee differently. Motivation is also depend on human behaviour and many other factors which is not consider in this study. Firm should also focus on different factors to increase employee performance.