The Employee Performance: A Critical Analysis of Compensation, Commitment, and Work Motivation

Abstract

The pawnshop has become one of vital organizations for the society in Indonesia, especially those who are in lower middle class of society. This is because the role of the pawnshop helps such class of society in getting a financial loan easily rather than bank. This later suggests that the pawnshop is requested to be more able in managing its human resource, especially the emphasis on (1) compensation; (2) commitment; as well as (3) motivation of the employee. However, this study finds that there is a lack of study in explaining the effect of such three abovementioned human resource instruments, especially, on the context of employee performance. Therefore, in order to enrich such a lack of study, this study aims to conduct a research with the focus on the said three human resource instruments through the application of quantitative research method with the sample size is 63 employees of pawnshop in Makassar. As for the theoretical contribution, finding of this study suggests that compensation, commitment, and work motivation partially and simultaneously affect the employee performance. As for the managerial contribution, this study suggests that it is compulsory for the business owners as well as policy makers to evaluate and improve the compensation, commitment, and work motivation periodically in order to have a better performance of their employee.