Title:
THE EFFECT OF MOTIVATION AND PERCEPTION OF COMPENSATION FAIRNESS ON PERFORMANCE MEDIATED BY JOB SATISFACTION ON HOTEL EMPLOYEES IN BANDA ACEH

Authors:
Rahmad, Hamdi Harmen and A.Sakir

Abstract:
The purpose of this study was to examine the effect of motivation and compensation fairness on employee performance mediated by job satisfaction on hotel employees in city Banda Aceh. The population used in this study were all employees of 82 hotels in Banda Aceh, amounting to 170 people. Because the population was relatively small, the entire population was sampled. The sampling method used the census method. So the number of samples in this study was 170 respondents. Processing the data and analysis of research results used structural equation modeling (SEM). The results of the study prove that motivation affects job satisfaction, fairness of compensation does not affect job satisfaction, motivation affects employee performance, fairness of compensation affects employee performance, and job satisfaction affects employee performance. The variable with the greatest impact on this hotel employee performance model is employee satisfaction because it has the largest coefficient value compared to other variables. For the indirect hypotheses, the result shows that employee motivation affects employee performance mediated by hotel employees’ job satisfaction and the fairness of compensation doesn’t affect employee performance even though it is mediated by hotel employees’ job satisfaction.