Effect of competence and compensation on work motivation: Moderation of performance appraisal

Abstract

Effective public services hinge on adept human resource management in government, yet challenges persist. Chief among them is the lack of employee motivation and competence, impacting service quality. Bolstering work motivation and competence is crucial, alongside fair compensation and unbiased performance evaluations. Recognizing and harnessing employee motivation is key for optimal public service. This study delves into how performance appraisal moderates the effects of competence and compensation on work motivation in ASN employees of Balai Besar Pelaksanaan Jalan Nasional Jawa Timur – Bali in Bali Province. Employing a quantitative approach, the research explores the interplay between competence, compensation, performance appraisal, and work motivation. Targeting ASN employees within the specified unit, the study employs saturated sampling, yielding 92 respondents. Data collected through questionnaires undergoes Moderated Regression Analysis (MRA) using IBM SPSS Statistics 25, following classical assumption tests. Findings reveal the positive impact of competence on work motivation; enhancing competencies heightens motivation. Similarly, higher compensation positively influences work motivation. Surprisingly, performance appraisal does not moderate the effects of competence or compensation on work motivation. Competence, compensation, and performance appraisal collectively shape individual work motivation within the organization. In conclusion, enhancing public service quality requires addressing employee motivation and competence issues. The study underscores competence and compensation as vital drivers of work motivation, while indicating a limited role for performance appraisal moderation. Elevating these aspects can substantially enhance public service efficiency and efficacy, benefiting both government bodies and the communities they serve.