Abstract
The background of this research is compensation policy of a company's performance helped determine direction of its employees to support company's goals. Compensation is one of important factors to be able to attract potential employees. Work motivation is also another factor that must be considered in addition to compensation for employees of company to realize goals of organization, following job satisfaction. Those three things are important factors in company to support employee performance. This study aimed to examine effect of compensation on work motivation, job satisfaction, and performance of employees on permanent employees of PT. Otsuka Indonesia in Lawang, Malang. Formulated several hypotheses of study are (1) Is compensation a significant effect on work motivation? (2) Is compensation a significant effect on job satisfaction? (3) Is compensation a significant effect on performance of employee? (4) Is work motivation have a significant effect on job satisfaction? (5) Is a significant effect on employee motivation employee performance ?, (6) Is job satisfaction significantly influence employee performance ?. This research is explanatory research with quantitative approach. The technique of collecting data from questionnaires and interviews. Research methods to process data using path analysis. Based on results of study found a significant effect of compensation on employee motivation PT. Otsuka Indonesia, there is a significant effect of compensation on employee job satisfaction of PT. Otsuka Indonesia, there is a significant influence on performance of compensation of employees of PT. Otsuka Indonesia, there is a significant effect of work motivation on employee job satisfaction of PT. Otsuka Indonesia, there is a significant influence on performance of work motivation of employees of PT. Otsuka Indonesia, and found no significant effect of job satisfaction on performance of employees of PT. Otsuka Indonesia. Employees of PT. Otsuka Indonesia are already satisfied with salary he got in a long time felt it would be a regular thing. So prone to reduced performance, because by working casual or work hard to remain earned his salary by same amount. Employees of PT. Otsuka Indonesia also feel responsibility for work carried out so far have not been entirely in accordance with his ability means that principle of the right man on right place has not been felt by employees of PT. Otsuka Indonesia. Interesting work and work has not felt like a hobby for PT. Otsuka Indonesia as yet incompatibility refers to responsibility of employee's ability to be felt
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