The Effect of Remuneration, Job Satisfaction and OCB on the Employee Performance

Hiqma Nur Agustiningsih

doi:10.11648/j.sjbm.20160406.16

Abstract

This study aims to: (1) analyze the effect of remuneration, job satisfaction and Organizational Citizenship Behavior (OCB) on employee performance; (2) analyze the job satisfaction as a mediating variable of the effect remuneration on employee performance; and (3) analyze OCB role in mediating the effect of remuneration and job satisfaction on employee performance. Data was collected using saturated sampling method. The population consisted of 138 Account Representative (AR) Supervision of the work in the Tax Office in Malang area, the Regional Office of Directorate General of Taxes East Java III. Data analysis using Partial Least Squares Structural Equation Modelling (PLS-SEM) or usually called Partial Least Squares Path Modelling (PLS-PM). The results showed that the remuneration is significantly and negatively effect the performance of AR Supervision, but the satisfaction and OCB do not significantly effect the performance of AR Supervision. Furthermore, remuneration and satisfaction positively and significantly effect AR satisfaction and OCB respectively, but remuneration does not significantly effect OCB. In relation to the indirect effects, job satisfaction and OCB do not mediate the effect of remuneration on the AR Supervision performance, neither OCB mediate the effect of job satisfaction on the AR Supervision performance. The results of this study indicate that the concept of the higher the remuneration received by employees, the higher their performance will be, only occurs in normal conditions. If there are obstacles in the work implementation process, then this concept does not apply. Therefore, the Directorate General of Taxation institution must provide the solution and attention to the barriers experienced by AR Supervision in order to maximize their performance.

Highlights

In the last two decades, Indonesia's national income tax sector increasingly important because over the years, the proportion of state revenues from the sector increases
The population was the whole of Account Representative Supervision, in the area of Malang Raya which is included within the Regional Office of Directorate General of Tax, East Java III, which consists of North Malang Pratama Tax Office (TO), South Malang TO, Singosari TO, Kepanjen TO, Batu TO and Madya Malang TO that consistes of 111 account Representative Supervision
Because p-value > 0.05, the hypothesis that the Organizational Citizenship Behavior (OCB) mediates the effect of job satisfaction on employee performance is rejected

Summary

Introduction

In the last two decades, Indonesia's national income tax sector increasingly important because over the years, the proportion of state revenues from the sector increases. If in 1998 the proportion of tax revenue amounted to 61.6% of the total national income, in 2004 increased to 78.3% and reached Rp. 232 trillion rupiah, comparing to tax revenue in 1994 which only amounted to 37 trillion rupiah. Even in 2015 the national tax revenue reached Rp. 1,061 trillion from Rp. 1,295 trillion target (82%). The human resource factor, namely the tax officials becomes a very important factor in achieving the target of the tax revenue, because the state requires formidable figure tax officials that are physically and mentally strong. Luthans (2011) [35] confirms that tax officials should have the fortitude, tenacity and patience to devote his life to the nation

Objectives

Methods

Results

Discussion

Conclusion