The mediating effect of job satisfaction in the relationship between wages, appreciation, recognition, and promotion on employee performance

Kumar, D.; Vasudevan, H. L.

Articles in Press

Document Type : ORIGINAL RESEARCH ARTICLE

Authors

Tun Razak Graduate School, University Tun Abdul Razak, Malaysia

Abstract

BACKGROUND AND OBJECTIVES: The manufacturing industry is the foundation of the Malaysian economy. The manufacturing industry in Malaysia is diverse, but it has consistently demonstrated superiority in several industries, including semiconductors, pharmaceuticals, medical technology, oil and gas, and the processing and management of palm oil and rubber. Businesses may find themselves in a very hazardous situation if their employees are dissatisfied. Improving employee performance can help an organization increase its production volume and productivity. A lack of worker satisfaction can lead to disinterest and an inability to achieve specific goals. When new employees notice a pay disparity, dissatisfaction, disengagement, and disloyalty arise. It happens when workers believe they are being mistreated or unfairly treated. Businesses must prioritize the well-being of their employees because it is more important to retain them than to let them go. To remain competitive, the organization must keep qualified or competent staff motivated. The study aims to determine the mediating effect of job satisfaction in the relationship between wages, appreciation, recognition, and promotion on employee performance among employees at a multinational semiconductor company in Melaka.
METHODS: For this investigation, the quantitative method was used to analyze information using partial least squares structural equation modeling. This study's sample size is 137, based on the partial least squares structural equation modeling sample size recommendation for an 80% statistical power. Employees of multinational semiconductor companies in Melaka received 142 questionnaires. The partial least squares structural equation modeling sample size table determines the sample size in this study, which combines convenience and nonprobability sampling. The relationship between the variables is determined through hypothesis testing. partial least squares structural equation modeling was used to analyze the data.
FINDINGS: As a result, all eleven hypotheses were evaluated based on the variables - wages, appreciation, recognition, promotion, and job satisfaction have a positive and significant relationship with employee performance. The hypotheses have been accepted with a p-value ranging from 0.005 to 0.048. For direct relationship, the hypothesis from 1-7, there is a positive correlation (t = 2.993 to t=4.521, p ≤ 0.005) between wages, appreciation, recognition, promotion, job satisfaction, and employee performance. Therefore, hypotheses 8-11 show an indirect relationship (mediating effect) that positive correlation with a significant p-value of 0.010 to 0.048 between an independent variable (wages, appreciation, recognition, and promotion), mediating variable (job satisfaction), and dependent variable (employee performance).
CONCLUSION: The study provides empirical evidence and conceptual proof that the establishment of policy recommendations derived from the findings should consider Malaysian legal regulations. The management by objectives policy was implemented to improve organizational performance by establishing well-defined goals that management and employees can agree on. The management by objectives approach is a technique for inspiring workers through constructive management techniques because the management objectives approach can increase communication between management and employees. As a result, the management strategy contributes to improving employees' wages, appreciation, recognition, promotion, job satisfaction, and performance.

Keywords

Main Subjects

Human capital in urban management

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International Journal of Human Capital in Urban Management

The mediating effect of job satisfaction in the relationship between wages, appreciation, recognition, and promotion on employee performance

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Articles in Press, Accepted Manuscript
Available Online from 11 May 2024

The mediating effect of job satisfaction in the relationship between wages, appreciation, recognition, and promotion on employee performance

References

References

Send comment about this article

Articles in Press, Accepted Manuscript Available Online from 11 May 2024

Articles in Press, Accepted Manuscript
Available Online from 11 May 2024