The Effect Compensation and Training on Work Discipline and Its Impact on Employee Performance at Aceh Financial Management Agency

Author: Harsya Jumanda, Muhammad Adam, Faisal Indonesia

Abstract:This research aimed to examine the effect of compensation and also training on employee performance both directly and indirectly through work discipline. The sampling technique used was proportionate stratified random sampling with the size of respondents as many 140 employees, while the data analysis technique used was the Structural Equation Modeling. This research resulted the proofs of causality theories that were: compensation and training had significant effects on work discipline; work discipline had a significant effect on employee performance, and; compensation and training had significant effects on employee performance indirectly through work discipline. This research also found the work discipline acted as a partial mediator both when compensation affected employee performance, and when training affected employee performance. This logic of thinking can be the basis for further movements for both researchers and practitioners. Further researches can raise the problem of other antecedent variables that can be linked to this tested research model, or even predict moderating variables that can strengthen the effect of compensation and training on work discipline such as age and gender.

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