Abstract

This research determines the distributive justice of compensation, procedural justice of compensation and emotional intelligence on affective commitment. The populations of this study are 115 non-managerial employees of three BMT in Yogyakarta. This study uses quantitative methods and SEM (Structural Equation Modeling) is used to analyze the data collection which is operationalized by the AMOS 21 application program.
 The results of this study indicate that distributive justice and emotional intelligence have a significant positive effect on affective commitment while procedural justice compensation has no effect on affective commitment.

Highlights

  • One problem that is often faced by a company is the compensation system that is applied

  • The results of this study indicate that distributive justice in compensation has a significant positive effect on affective commitment, meaning that the higher the perception of distributive justice in compensation to companies, the affective commitment will increase

  • It is perceived that distributive justice is dominant in explaining employee perceptions and fulfilling employee expectations regarding compensation

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Summary

Introduction

One problem that is often faced by a company is the compensation system that is applied This is a problem for Baitul Maal wa Tamwil (BMT) which is engaged in the Islamic finance industry. Compensation is important for employees because the amount of compensation reflects the size of the value of their work among the employees themselves, their families, and the community. The compensation program itself is important for the company because it reflects the company's efforts to maintain human resources or that employees have a high commitment to the company (Handoko, 1994). The underlying factor for an employee to work optimally is fairness in compensation, a company is said to be able to provide the best service for what is generated, one of which depends on the ability of employees to contribute to the company, because indirectly with the compensation aspects applied by the company make employees motivated to provide maximum work results, so for companies to be able to understand what their employees expect, be able to empower properly so that it is in line with the commitments that each employee has

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