Title:
THE EFFECT OF JOB SATISFACTION AND PSYCHOLOGICAL CONTRACT ON EMPLOYEE COMMITMENT AND ITS IMPACT ON EMPLOYEE PERFORMANCE OF PT. BANK RAKYAT INDONESIA BRANCH MEULABOH

Authors:
Abdul Ghafur, Said Musnadi and Nadirsyah ,Indonesia

Abstract:
This research is to examine the effect of job satisfaction and psychological contract on employee commitment and its impact on employee performance at PT. Bank Rakyat Indonesia (BRI) Branch Meulaboh. The population is all its employees as many as 208 people. While the sample is determined using Clustered Random Sampling technique that the respondents are taken based on their respective Work Units. By using the Slovin formula, the number of sample in this study is 139 people. Data is collected using questionnaires. The Structural Equation Model (SEM) is used to test the research model, and, Sobel test is also used to measure special for the indirect effects in the model. The result shows that job satisfaction effects employee commitment significantly, psychological contract effects employee commitment significantly, job satisfaction effects employee performance significantly, employee psychological contract effects employee performance significantly, employee commitment effects employee performance significantly, job satisfaction effects employee performance through employee commitment significantly, and psychological contract effects employee performance through employee commitment significantly. The employee commitment is proven as the partial mediation variable for both indirect effects. These all findings confirm the model as a fit model so it contributes to science as an update of the theory. The novelty lies in the integration of the causality model from the previous theories, and in using a new object. The limitation resides in the amount of variables and the scope of object. This model also can be a reference for the practical managers, especially the managers in PT. BRI Branch Meulaboh, to respond to the latest conditions of their organization