The Effect of Compensation and Rewards on Employee Performance: A Case Study of PT Trimega Pasivic Indonesia
DOI:
https://doi.org/10.61277/jmet.v4i1.268Keywords:
Compaensation, Rewards, Employee PerformanceAbstract
This study aims to examine the effect of compensation and rewards on employee performance at PT Trimega Pasivic Indonesia. The research employs a quantitative approach using multiple linear regression analysis, with data collected through questionnaires distributed to employees directly involved in the company’s operational activities. The independent variables in this study consist of compensation and rewards, while the dependent variable is employee performance. The results of the analysis indicate that both compensation and rewards have a positive and statistically significant effect on employee performance, both simultaneously and partially. These findings underscore the critical importance of implementing a fair and well-structured compensation and reward system to enhance employee productivity and job satisfaction, which ultimately contributes to the overall success of the company. This study is expected to provide theoretical contributions to the development of human resource management literature, as well as practical implications for organizations in optimizing employee performance management.
Downloads
References
Aboramadan, M., Albashiti, B., Alharazin, H., & Dahleez, K. A. (2020). Human resources management practices and organizational commitment in higher education. International Journal of Educational Management, 34(1), 154–174. https://doi.org/10.1108/IJEM-04-2019-0160
Amjad, F., Abbas, W., Zia-UR-Rehman, M., Baig, S. A., Hashim, M., Khan, A., & Rehman, H.-. (2021). Effect of green human resource management practices on organizational sustainability: the mediating role of environmental and employee performance. Environmental Science and Pollution Research, 28(22), 28191–28206. https://doi.org/10.1007/s11356-020-11307-9
Berk, J. B., & van Binsbergen, J. H. (2015). Measuring skill in the mutual fund industry. Journal of Financial Economics, 118(1), 1–20. https://doi.org/10.1016/j.jfineco.2015.05.002
Cappa, F., Rosso, F., & Hayes, D. (2019). Monetary and Social Rewards for Crowdsourcing. Sustainability, 11(10), 2834. https://doi.org/10.3390/su11102834
Doucet, É., McInis, K., & Mahmoodianfard, S. (2018). Compensation in response to energy deficits induced by exercise or diet. Obesity Reviews, 19(S1), 36–46. https://doi.org/10.1111/obr.12783
Groen, B. A. C., Wouters, M. J. F., & Wilderom, C. P. M. (2017). Employee participation, performance metrics, and job performance: A survey study based on self-determination theory. Management Accounting Research, 36, 51–66. https://doi.org/10.1016/j.mar.2016.10.001
Haque, F., & Ntim, C. G. (2020). Executive Compensation, Sustainable Compensation Policy, Carbon Performance and Market Value. British Journal of Management, 31(3), 525–546. https://doi.org/10.1111/1467-8551.12395
Lee, H., Lim, D., Kim, H., Zo, H., & Ciganek, A. P. (2015). Compensation paradox: the influence of monetary rewards on user behaviour. Behaviour & Information Technology, 34(1), 45–56. https://doi.org/10.1080/0144929X.2013.805244
Manso, G. (2017). Creating Incentives for Innovation. California Management Review, 60(1), 18–32. https://doi.org/10.1177/0008125617725287
Masri, H. A., & Jaaron, A. A. M. (2017). Assessing green human resources management practices in Palestinian manufacturing context: An empirical study. Journal of Cleaner Production, 143, 474–489. https://doi.org/10.1016/j.jclepro.2016.12.087
Mazzetti, G., Schaufeli, W. B., Guglielmi, D., & Depolo, M. (2016). Overwork climate scale: psychometric properties and relationships with working hard. Journal of Managerial Psychology, 31(4), 880–896. https://doi.org/10.1108/JMP-03-2014-0100
Nazir, S., Shafi, A., Qun, W., Nazir, N., & Tran, Q. D. (2016). Influence of organizational rewards on organizational commitment and turnover intentions. Employee Relations, 38(4), 596–619. https://doi.org/10.1108/ER-12-2014-0150
Park, S., & Sturman, M. C. (2016). Evaluating Form and Functionality of Pay‐for‐Performance Plans: The Relative Incentive and Sorting Effects of Merit Pay, Bonuses, and Long‐Term Incentives. Human Resource Management, 55(4), 697–719. https://doi.org/10.1002/hrm.21740
Parkinson, A., Jorm, L., Douglas, K. A., Gee, A., Sargent, G. M., Lujic, S., & McRae, I. S. (2015). Recruiting general practitioners for surveys: reflections on the difficulties and some lessons learned. Australian Journal of Primary Health, 21(2), 254–258. https://doi.org/10.1071/PY13129
Phung, G., Trinh, H. H., Nguyen, T. H., & Trinh, V. Q. (2023). Top‐management compensation and environmental innovation strategy. Business Strategy and the Environment, 32(4), 1634–1649. https://doi.org/10.1002/bse.3209
Russell, A., & Russell, C. G. (2021). Appetite self-regulation declines across childhood while general self-regulation improves: A narrative review of the origins and development of appetite self-regulation. Appetite, 162, 105178. https://doi.org/10.1016/j.appet.2021.105178
Saeed, B. Bin, Afsar, B., Hafeez, S., Khan, I., Tahir, M., & Afridi, M. A. (2019). Promoting employee’s proenvironmental behavior through green human resource management practices. Corporate Social Responsibility and Environmental Management, 26(2), 424–438. https://doi.org/10.1002/csr.1694
Saka, N., Olanipekun, A. O., & Omotayo, T. (2021). Reward and compensation incentives for enhancing green building construction. Environmental and Sustainability Indicators, 11, 100138. https://doi.org/10.1016/j.indic.2021.100138
Schloemer-Jarvis, A., Bader, B., & Böhm, S. A. (2022). The role of human resource practices for including persons with disabilities in the workforce: a systematic literature review. The International Journal of Human Resource Management, 33(1), 45–98. https://doi.org/10.1080/09585192.2021.1996433
Shah, N., & Soomro, B. A. (2023). Effects of green human resource management practices on green innovation and behavior. Management Decision, 61(1), 290–312. https://doi.org/10.1108/MD-07-2021-0869
Sonkoly, J., E. Vojtkó, A., Tökölyi, J., Török, P., Sramkó, G., Illyés, Z., & Molnár V., A. (2016). Higher seed number compensates for lower fruit set in deceptive orchids. Journal of Ecology, 104(2), 343–351. https://doi.org/10.1111/1365-2745.12511
Teicher, M. H., Samson, J. A., Anderson, C. M., & Ohashi, K. (2016). The effects of childhood maltreatment on brain structure, function and connectivity. Nature Reviews Neuroscience, 17(10), 652–666. https://doi.org/10.1038/nrn.2016.111
Temesgen, K., Aycheh, M. W., & Leshargie, C. T. (2018). Job satisfaction and associated factors among health professionals working at Western Amhara Region, Ethiopia. Health and Quality of Life Outcomes, 16(1), 65. https://doi.org/10.1186/s12955-018-0898-7
Thirumurthy, H., Masters, S. H., Rao, S., Murray, K., Prasad, R., Zivin, J. G., Omanga, E., & Agot, K. (2016). The Effects of Providing Fixed Compensation and Lottery-Based Rewards on Uptake of Medical Male Circumcision in Kenya: A Randomized Trial. JAIDS Journal of Acquired Immune Deficiency Syndromes, 72(4), S299–S305. https://doi.org/10.1097/QAI.0000000000001045
Widmer, M., Held, J. P., Wittmann, F., Lambercy, O., Lutz, K., & Luft, A. R. (2017). Does motivation matter in upper-limb rehabilitation after stroke? ArmeoSenso-Reward: study protocol for a randomized controlled trial. Trials, 18(1), 580. https://doi.org/10.1186/s13063-017-2328-2
Yang, H., Du, H. S., He, W., & Qiao, H. (2021). Understanding the motivators affecting doctors’ contributions in online healthcare communities: professional status as a moderator. Behaviour & Information Technology, 40(2), 146–160. https://doi.org/10.1080/0144929X.2019.1679887
Yu, Z., Khan, S. A. R., Mathew, M., Umar, M., Hassan, M., & Sajid, M. J. (2022). Identifying and analyzing the barriers of Internet-of-Things in sustainable supply chain through newly proposed spherical fuzzy geometric mean. Computers & Industrial Engineering, 169, 108227. https://doi.org/10.1016/j.cie.2022.108227











