Title:
THE EFFECT OF ORGANIZATIONAL CLIMATE AND ORGANIZATIONAL JUSTICE ON WORK MOTIVATION AND ITS IMPACT ON EMPLOYEE PERFORMANCE: STUDY ON COMPANIES LISTED IN THE PIDIE JAYA CHAMBER OF COMMERCE AND INDUSTRY

Authors:
Muhammad Ridha, Mukhlis and Said Musnadi

Abstract:
This study aims to examine the effect of organizational climate and organizational justice on work motivation and its impact on employee performance in companies listed in the Pidie Jaya Chamber of Commerce and Industry. The population in this study was 385 employees at the companies listed in the Pidie Jaya Chamber of Commerce and Industry. This study established Stratified Proportional Random Sampling as a method and provided as many as 132 respondents as a sample. The research model was analyzed using SEM applications with the help of the Amos program. The results of the descriptive hypothesis test show that the variables of organizational climate, organizational justice, work motivation, and employee performance at companies listed in the Pidie JayaChamber of Commerce and Industry are already in good condition. The results of direct hypothesis testing show that organizational climate affects work motivation (H2), organizational justice affects work motivation (H3), organizational climate affects employee performance (H4), organizational justice affects employee performance (H5), and work motivation affects employee performance (H6). The results of indirect hypothesis testing (H7) prove that work motivation mediates (partial mediation) the influence of organizational climate on employee performance and indirect hypothesis testing (H8) also proves that work motivation mediates (partial mediation) the effect of organizational justice on employee performance. Employee persistence and creativity become the strongest predictor indicators and the highest value in the model, which is an indicator of employee performance variables. While ability is an indicator that has the lowest value in the model and must be improved, the indicator lies in the work motivation variable. Researchers recommend conducting further testing to be able to improve employee performance and work motivation by using job satisfaction, expertise, leadership, personality, and knowledge sharing variables.