Comprehensive Performance Measures, Job Satisfaction and Managerial Performance: The Effect of Trust in Superior and Organizational Commitment

This study’s objectives are, first, to investigate if the use of financial and non-financial measures is related to some employee performances, such as job satisfaction, managerial performance, and commitment to the organization. This study also investigates if financial and non-financial performance measures affect employees’ job satisfaction and managerial performance through employees’ trust in superiors and their commitment to the organization. The data were collected from management-level employees of two service industries – public accounting firms and state-owned administrative service – located in Jakarta, Bogor, Depok, Banten, and Serang. The 79 data were analyzed by using PLS-SEM with SmartPLS Software Version 3.2.8. The results show that (1) financial performance measures do not affect job satisfaction directly or indirectly, (2) financial performance measures affect managerial performance through commitment to the organization, and (3) the use of non-financial measures as the company’s employee performance evaluation affect employee job satisfaction and managerial performance indirectly through higher trust in superior and commitment to organization.