Abstract
Job characteristics are the nature of the task that includes the responsibilities, tasks and levels of satisfaction derived from the work itself. Compensation is something that employees receive in exchange for the contribution of their services to the organization. Job satisfaction is a set of employee feelings about the fun or the absence of their work. Organizational commitment is a desire or encouragement from within an individual to take an active role in making endeavors to realize organizational goals.
 The purpose of this study is to examine the effect of job characteristics and compensation on job satisfaction and organizational commitment on LPD staffs of the Kerambitan, Tabanan. The sampling technique used is proportional random sampling. The sample in this research is 86 employees in all LPD Kerambitan Tabanan. Data analyst method used is SEM analysis (Structural Equation Modeling) based on component or variance that is PLS (Partial Least Square). The result of research indicate that job characteristic and compensation variable have positive effect to job satisfaction. Job characteristics do not affect organizational commitment, while compensation has a positive effect on organizational commitment either partially or through job satisfaction. Job satisfaction has a positive effect on organizational commitment.
Highlights
Village Credit Institution (LPD) can be interpreted as one type of non-bank institution that helps provide services to customers related to their activities, ie investment from the community in the form of time deposits, savings, credit, or other similar forms
The compensation path (X2) job satisfaction (Y1) organizational commitment (Y2) is greater with the total effect gained by 0.666, compared to job characteristics (X1) job satisfaction (Y1) organizational commitment (Y2) with total effect of 0.237. These findings provide clues that job characteristics and increasingly qualified compensation make employees increasing job satisfaction in work on all LPD Kerambitan Tabanan, so that later can increase organizational commitment that impact on the progress of a sustainable company
The conclusions of this study are as follows: 1. Job characteristics positively affect the job satisfaction on all LPD Kerambitan Tabanan, this indicates that the higher level of job characteristics will be the higher the employee's job satisfaction
Summary
Village Credit Institution (LPD) can be interpreted as one type of non-bank institution that helps provide services to customers related to their activities, ie investment from the community in the form of time deposits, savings, credit, or other similar forms. Village Credit Institution (LPD) has very important role because it has been serving small and micro enterprises (MSEs) and communities in Desa Pakraman in Bali through financial services that are done in accordance with the needs of the community, namely simple procedures, short process, personal approach, and proximity of LPD locations or offices with customers. (2001: 202), job satisfaction is a pleasant emotional attitude and loves his job. Job satisfaction (job statisfaction) employees should be created as well as possible so that work morale, dedication, love and discipline of employees increases. This attitude is reflected by work morale, discipline and work performance. Job characteristics are related to how employees judge the tasks in their work (Isrorina and Setyowati, 2009: 2)
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