The Role of Organizational Commitment in Mediation Effect of Compensation and Competency on Employee PerformanceThe Role of Organizational Commitment in Mediation Effect of Compensation and Competency on Employee Performance

Abstract

The existence of human resources plays a central role in the organization or company. The preparation of human resources is a crucial issue in the current era of globalization. Organizational success is highly dependent on employee performance. This study aims to determine and explain the role of organizational commitment in mediating the effect of compensation and competence on employee performance at Fitness Plus in Denpasar City. The population in this study were all employees where the sample determination used non-probability sampling method with saturated sampling technique (census) so that the entire population of 60 people was sampled. Path analysis was used to test the hypothesis in the study and the SmartPLS application was used to test the data obtained in this study. The results showed that compensation and competence have a significant positive effect on organizational commitment. Compensation has a significant positive effect on employee performance, but competence has no significant effect on employee performance. Organizational commitment has no significant effect on employee performance and was unable to mediate the effect of compensation and competence on employee performance.