The Determinant of Job Satisfaction and Its implication towards Employee Performance in Indonesian Electronic Distributor Company

Abstract

This research is carried out to examine the effect of conflict, reward, organizational culture on employee satisfaction and performance in Indonesia Electronic Distributor Company, Pekanbaru. This study has used 66 respondents. The data was analysed using path analysis to delineate the relationships between variables. The analysis also focused on the direct and indirect effects of exogenous variables (conflict, reward and organizational culture) on endogenous variables (satisfaction and performance). As the results, this study indicated the effect of conflict, reward and organizational culture on employee satisfaction, but not on employee performance. The newest finding showed that the conflict had partially positive and significant effects on employee performance, but not on their job satisfaction. Moreover, organizational culture directly affected performance through job satisfaction, but organizational culture had no significant effect on performance. Furthermore, this study recommends that companies need to maintain the level of conflicts as well as to develop reward and organizational culture so that the employee satisfaction and performance can be maintained.