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ABSTRACT

Analysis The Effect of Compensation Toward Satisfaction and Performance Production Officer

in PT. Dharma Guna Wibawa Chemicals

AYU LEMITA

The purpose of this study was to analyze officer perception about compensation that company give, to analyze dominant factor of compensation which effecting performance officer, and to give advise to management of compensation . By implementing the stratified technique as the preferred sensus method, eighty officers of PT. Dharma Guna Wibawa Chemicals participated as respondents. The research utilitizes range of criteria and the structural Equation Modeling (SEM) to analyze and compare the theory-based model with the actual condition in PT. DGW Chemicals. The data obtained from the SEM analysis is further processed using the software LISREL (Linear Structural Relationship) 8.7. There are 25 indicators used analysis objects, which can be classified into 15 indicator of compansation constructors, 3 indicator of job satisfaction, and 7 indicator of performance.

The result of this research shows the data collected from PT. DGW Chemicals are consistens with the theories applied. This conclution can be seen in the indices of LISREL’s output, which display the values of certain parameters such as chi-square, leverage degree, probability, and RMSEA. The output also shows that balanced between salary and weight of work have the higher contribution of compensation, job quality has the higher contribution of job satisfaction, and than loyalty has the higher contribution of performance .

Keywords:Compensation, Satisfaction, Performance, Range of Criteria, Structural Equation Modeling (SEM)