JOB SATISFACTION AND EMPLOYEE PERFORMANCE FACTORS IN PALM OIL PLANTATIONS

Abstract

The research objective was to determine the effect of organizational culture, compensation, and motivation on job satisfaction and employee per­for­mance of oil palm plantations at Katari Agro Estate, PT. Bumitama Gu­na­ja­ya Agro, Central Kalimantan Province. The research sample of 200 plan­ta­ti­on direct employees was selected by accidental sampling method from 428 po­pu­lations. Data were collected using a questionnaire and then analyzed by va­riant-based Structural Equation Model (SEM) or Partial Least Square (PLS). The results of the analysis prove that organizational culture, compensation, and motivation directly have a significant effect on job satisfaction. Organiza­ti­onal culture, compensation, and motivation have a significant direct effect on em­ployee performance. Job satisfaction directly has a significant effect on em­ployee performance. The indirect effect between organizational culture and mo­tivation on performance through job satisfaction is not significant. The in­di­rect effect between compensation on performance through job satisfaction has significant. The study results have implications for organizational culture, compensation, and employee motivation that need to be improved to increase job satisfaction and employee performance. Suggestions for further research in­clu­de exploring research by adopting qualitative studies to explain the symp­tom further and focusing on the influence of organizational culture, compen­sa­tion, and motivation on indirect employee or managerial employee groups.