The Effect of Performance Appraisal Systems and Compensation Systems on Work Motivation Mediated by Job Satisfaction of Yogyakarta Primary Tax Service Office Employees

Abstract

The role of Human Resources (HR) is very important for the company, HR is one of the factors directly involved in the company's activities and is important in increasing company productivity in achieving the company's goals or targets. The company needs potential human resources both leaders and employees on the pattern of tasks and supervision that is a determinant of achieving the company's goals. HR is a central figure in organizations and companies. In order for management activities to run well, companies must have knowledgeable and highly skilled employees and efforts to manage the company optimally so that employee performance improves.This study also aims to determine the effect of performance appraisal systems and compensation systems on work motivation, and job satisfaction in the Yogyakarta Primary Tax Service Office as a mediation of the relationship between performance appraisal systems and compensation systems with work motivation. Empirical results were obtained through distributing questionnaires to 109 employees of the Yogyakarta Primary Tax Service Office.This research conducts structural equation modeling to test the proposed relationship. The results showed that the performance appraisal system and the compensation system had a positive and significant effect on job satisfaction and work motivation and job satisfaction can mediate a positive and significant relationship between performance appraisal systems and motivation that work at the Yogyakarta Primary Tax Service Office