Analysis of the Effect of Organizational Commitment on Employee Performance with Job Satisfaction as an Intervening Variable at PT. PLN (Persero) UP3 Sibolga

Abstract

This study aimed to analyze the effect of organizational commitment on employee performance with job satisfaction as an intervening variable at PT. PLN (Persero) UP3 Sibolga. This study used a quantitative approach with an associative research design. The population of this study consisted of all employees of PT. PLN (Persero) UP3 Sibolga, totaling 85 employees, and the entire population was used as the sample through saturated sampling. Primary data were obtained by distributing questionnaires to respondents and were analyzed using path analysis with the assistance of SPSS. The results showed that organizational commitment had a positive and significant effect on job satisfaction, with a beta value of 0.909 and a significance value of 0.000. Organizational commitment also had a positive and significant effect on employee performance, with a beta value of 0.660 and a significance value of 0.000. In addition, job satisfaction had a positive and significant effect on employee performance, with a beta value of 0.316 and a significance value of 0.000. The R Square value in Model I was 0.826, indicating that organizational commitment explained 82.6 percent of job satisfaction. The R Square value in Model II was 0.914, indicating that organizational commitment and job satisfaction explained 91.4 percent of employee performance. The indirect effect of organizational commitment on employee performance through job satisfaction was 0.287, which was lower than the direct effect of 0.660. These findings indicated that organizational commitment was more dominant in improving employee performance directly than through job satisfaction.