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Motivation And Job Commitment's Role In Project Bonuses And Employee Performance

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This article investigates the mechanism underlying the relationship between project bonuses and employee performance by mediating employee motivation and organisational commitment. It is based on two main theories: Maslow's needs theory, which explains motivation, and organisational commitment theory.
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Motivation And Job Commitment's Role In Project Bonuses
And Employee Performance
Revi Kristioni 1* and Yanuar 2
1,2Department of Management, Faculty of Economics and Business, Universitas Tarumanagara,
Jakarta, Indonesia
Email Address:
revi.117222023@stu.untar.ac.id *, yanuar@fe.untar.ac.id
*Corresponding Author
Submitted 03-06-2024
Reviewed 02-07-2024
Revised 03-07-2024
Accepted 03-07-2024
Published 31-07-2024
Abstract: This article investigates the mechanism underlying the relationship between project bonuses and
employee performance by mediating employee motivation and organisational commitment. It is based on two
main theories: Maslow's needs theory, which explains motivation, and organisational commitment theory.
Keywords: Organisational Commitment; Project Bonus; Employee Motivation; Employee Performance.
Abstrak: Artikel ini memiliki tujuan untuk menyelidiki mekanisme yang mendasari hubungan antara bonus
proyek dan Kinerja Karyawan melalui mediasi motivasi karyawan dan Komitmen Organisasi yang berpijak pada
dua teori utama yaitu Teori kebutuhan Maslow yang menjelaskan mengenai motivasi dan teori komitmen
organisasi.
Kata Kunci: Bonus Proyek; Motivasi Karyawan; Komitmen Organisasi; Kinerja Karyawan.
INTRODUCTION
Organisations worldwide are often pressured to achieve optimal performance during
intense business competition (Salmon et al., 2023). Achieving this goal requires a deep
understanding of the factors influencing employee performance, which is one of the most
valuable assets for the organisation. Employees must pay attention to their functions and
organisational activities as human resources. Human resource management is used to
develop and optimise their capabilities and performance. Human resource planning is one
of the most critical points in human resource management.
Employee performance has a vital role in improving the company's overall
performance. Employee performance is directly involved in carrying out organisational
and agency activities. Therefore, organisations and agencies must pay maximum attention
to employees, both in terms of the quality of knowledge and skills and the level of welfare,
so that they are encouraged to provide all abilities as needed (Schabram et al., 2023).
Employee performance is crucial to a company's success, reflecting the quality and
quantity of work employees achieve in fulfilling their responsibilities (Chen & Cuervo,
2022). Employees who perform well are expected to meet their job expectations
effectively. Maslow's hierarchy of needs provides a valuable framework for managing
employees by addressing their fundamental human needs. Leaders and managers can
utilize this hierarchy in their strategic and operational planning to foster a positive work
environment and boost employee motivation. According to (Bagas, 2020), Maslow's
theory highlights that employee performance significantly impacts the company,
necessitating efforts to motivate employees to excel in their roles.
This has become one of the strategies companies can use to motivate employees: the
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provision of project bonuses (Hossard et al., 2022). Project bonuses are a form of reward
given to employees for contributing to completing the project successfully. The purpose of
awarding a project bonus is to stimulate employee motivation. Could you encourage them
to perform better? And thus. Improve the overall performance of the organisation.
Motivation theory reinforces this concept, recognising the importance of incentives and
rewards in improving individual performance. However, project bonuses have great
potential for improving employee performance. Research (Nurrohmat & Lestari, 2021)
states that work bonus wages do not fully affect employee productivity, so the question
arises: What should be done so that project bonuses can improve employee performance?
This research gap in this study must be addressed.
This research develops a model using motivation and organisational commitment as
critical variables. It is based on the rationale that increasing project bonuses will boost
employee motivation, enhance their commitment to the organisation, and ultimately lead
to improved employee performance. Observations at the RST Company office revealed
several issues related to Employee Performance, including the inability of employees to
complete tasks on time and a lack of cooperation, particularly between divisions.
This article's novelty is exploring the mediating roles of employee motivation and
organisational commitment in the relationship between project bonuses and employee
performance, using RST Company as a case study. Unlike previous research, which often
concentrated solely on the direct effects of project bonuses on employee productivity, this
study examines how motivation and organisational commitment mediate this relationship.
This approach addresses the research gap regarding the inconsistent effects of Project
Bonuses on employee productivity, offering a more comprehensive understanding of the
underlying dynamics.
Additionally, this research leverages real-world data from RST Company to ground
its findings in practical application. This setting allows for the observation of real-time
responses to project bonuses, offering insights directly applicable to similar organisational
contexts. The study seeks to provide valuable insights into enhancing employee
performance through strategic human resource practices by applying this model in a real-
world setting. This contributes to the academic literature and offers practical guidance for
managers and HR professionals aiming to optimise employee performance and
organisational outcomes through targeted incentive structures.
This study addresses the research gap by explaining the mediating roles of employee
motivation and organisational commitment in the relationship between project bonuses and
employee performance. By gaining a deeper understanding of these intermediate factors,
the research seeks to clarify how project bonuses impact employee performance through
their influence on motivation and organisational commitment. By applying this model to
RST Company as a case study, this research provides valuable guidance in addressing
employee performance challenges in today's competitive business environment. This
research will contribute valuablely to developing practical human resource management
theory and practice.
The problem formulations that are the focus of research are (1) the effect of project
bonuses on employee performance, (2) the effect of project bonuses on employee
motivation, (3) the effect of project bonuses on organisational commitment, (4) the effect
of employee motivation on employee performance, (5) the effect of organisational
commitment on employee performance, (6) the effect of project bonuses on employee
performance through employee motivation, (7) the effect of project bonuses on employee
performance through organisational commitment, and (8) the effect of employee
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motivation and organisational commitment as mediating variables.
THEORETICAL REVIEW
Hierarchy of Needs Theory. Maslow's Motivation Theory, known as the Hierarchy
of Needs Theory, is a conceptual framework developed by Abraham H. Maslow in his
seminal article "A Theory of Human Motivation," published in the Psychological Review.
Maslow posits that a person's needs and satisfaction are multifaceted, encompassing
biological and psychological needs, including material and non-material aspects (Bagas,
2020). This theory describes a hierarchy of human needs that helps us understand what
drives individuals to act and achieve their potential. This theory helps explain what drives
human behaviour. Why do people seek certain fulfilment? How can we understand
individual motivation by paying attention to this hierarchy? This study uses this theory as
the leading theory supporting the research. This is because this theory, Maslow's
Motivation Theory, is closely related to the research.
Maslow's theory emphasises that individuals have various levels of needs. With
physiological needs being the most basic and self-actualization needs being the highest,
this is done through the bonus project to motivate employees. This can relate to the need
for appreciation and recognition (the level of self-esteem needs), which relates to the effort
and drive that arise from within a person to meet all goals aimed at in Maslow's Theory.
Organisational commitment (OC) can be related to the need for togetherness and a sense
of security due to feeling connected to the organisation. This reflects how motivation
(which can be understood in the context of Maslow's theory) and organisational
commitment (OC) can be the bridge between financial incentives (project bonus (PB)) and
employee performance (EP) outcomes. Thus. Maslow's motivation theory provides a solid
theoretical basis for understanding employee motivation (EM) and organisational
commitment (OC) in the research context. These factors can mediate Project Bonus's (PB)
effect on employee performance (EP).
Human resource management is a strategic approach to managing an
organisation's workforce. It involves managing and developing human resources to
maximise employee contributions and potential (Bratton et al., 2021). HRM encompasses
various activities and strategies to optimise the use of human resources to align with the
organisation's goals and needs. In project teams, HRM refers to efforts to effectively
manage the workforce involved in project execution (Tyson, 2020).
Project Bonus. Work bonuses refer to additional rewards given to employees for
outstanding performance or target achievement, significant contributions, or results that
exceed expectations in their work (Francis et al., 2020). A work bonus is an additional
form of financial reward given to employees in recognition of outstanding performance or
achievement of specific targets in their work. Job bonuses, such as annual or one-time
project bonuses (PB) or performance bonuses, can be given periodically.
Employee Performance. Employee Performance (EP) refers to the level of
achievement and the results of an individual's work, including the goals to be attained and
the tasks to be completed within a specific timeframe. Performance describes an
employee's ability to execute tasks according to the organisation's standards and job
description. In the human resource management (HRM) context, performance signifies the
outcomes or accomplishments attained by an employee or group of employees in fulfilling
their duties and responsibilities at work (Andreas, 2022).
Employee Motivation. Employee Motivation (EM) is a psychological state or
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internal drive that inspires individuals to achieve goals, complete tasks, and exert their best
effort in the workplace (Andreas, 2022). Within human resource management (HRM),
work motivation involves organisations implementing strategies and initiatives to
comprehend, foster, and maintain EM to meet organisational objectives (Jalagat, 2017).
This aspect of HRM is critical, as it directly influences individual performance, job
satisfaction, and overall productivity in the workplace.
Organisational Commitment. Organisational commitment (OC) refers to an
employee's dedication, attachment, and loyalty to their job and organisation (Salmon et al.,
2023). It reflects the employee's motivation and willingness to stay engaged and contribute
to the organization's goals. OC encompasses emotional, cognitive, and behavioural aspects,
illustrating employees' desire to contribute actively, remain with the organisation long-
term, and achieve positive outcomes in their work.
Figure 1 presents the research framework, depicting the influence between variables
and the resulting hypothesis.
Figure 1. The Conceptual Research Framework
Hypothesis. Drawing from the theories and the interactions between the variables,
the hypotheses for this study are formulated as follows:
H1: Project Bonus (PB) has a significant effect on Employee Performance (EP) at RST
Company,
(Bagas, 2020) research, which also employs Maslow's Hierarchy Theory, it is stated
that a person's needs and satisfaction are diverse, encompassing biological and
psychological needs, including material and non-material ones. Psychological needs for
humans include necessities such as food, drink, shelter, and a salary sufficient to meet these
basic needs. Consequently, the Project Bonus (PB) is considered part of employees' material
needs. This aligns with (Taba, 2018) findings, which indicate a significant relationship
between Reward and Employee Performance (EP) in a company. Similarly, (Ariani et al.,
2020) suggest that bonuses or rewards are critical to enhancing employee performance (EP).
Thus, there is a significant reciprocal influence between the rewards provided by a company
and Employee Performance (EP).
Employee
Performance
Employee
Motivation
Organisational
Commitment
Project Bonus
H4
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H2: Project Bonus (PB) has a significant effect on Employee Motivation (EM) at RST
Company.
Implementing project bonuses (PB) aims to enhance employee motivation (EM) and
stimulate improved performance. When the system for providing project bonuses (PB)
becomes fairer, encompassing factors like salaries, bonuses, welfare, and career
development, employee performance (EP) is expected to increase. This improvement
includes enhanced work quality, punctuality, effectiveness, and efficiency, as discussed by
(Francis et al., 2020), who assert that consumer-related rewards influence Employee
Motivation (EM) to perform better. However, (Kitsios & Kamariotou, 2021) found that
wage bonuses do not consistently impact employee motivation (EM), as not all employees
receive equal bonuses, and some may not work solely for the promise of a bonus.
H3: Project Bonus (PB) has a significant effect on organisational Commitment (OC) at RST
Company.
Project Bonuses (PB) are crucial for company employees (Bagas, 2020), as their
amount reflects the value of an individual's contributions to the company. The reward
system is vital for the organisation as it demonstrates its efforts to retain human resources,
fostering high employee loyalty and commitment. (Jawaad et al., 2019) found that work
discipline positively and significantly impacts organisational commitment (OC). (Taba,
2018) also highlighted that the reward system significantly affects organisational
commitment (OC), which is driven by employees' physiological needs. Additionally,
Francis et al. (2020) noted that providing employee bonuses enhances company
commitment, as organisations that value commitment show appreciation through bonus
wages.
H4: Employee Motivation (EM) has a significant effect on Employee Performance (EP) at
RST Company.
The presence of needs is a primary motivator for individuals in their work. When
adequately motivated, employees maintain their drive and enhance their performance,
thereby contributing to the company's achievement of corporate goals. Motivation fosters a
shared sense of purpose by aligning the organization's needs and aspirations with those of
its employees. (Andreas, 2022) highlights the influence of employee motivation (EM) on
employee performance, emphasising that meeting employees' needs fosters motivation for
practical work. (Alcover et al., 2020) further affirm that employee motivation (EM)
significantly influences employee performance (EP), mainly through non-material needs.
Additionally, (Liaquat et al., 2024) underscore in their research that employee motivation
(EM) impacts the performance employees deliver to the company, driven by their need to
feel valued.
H5: Organisational Commitment (OC) has a significant effect on Employee Performance
(EP) at RST Company.
Company commitment plays a crucial role in ensuring that employees are dedicated
to their tasks, thereby facilitating the achievement of company goals. Without commitment
and considering various factors affecting employee performance (EP), such as quality,
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quantity, timeliness, effectiveness, and autonomy, employees may lack enthusiasm, easily
give up, and struggle to complete tasks. (Marrucci et al., 2024) found in their research a
significant long-term relationship between organisational Commitment (OC) and Employee
Performance (EP). Similarly, (Jawaad et al., 2019) demonstrated that company commitment
significantly influences Employee Performance (EP) within organisations, driven by the
unique values upheld by each company.
H6: Project Bonus (PB) has a significant effect on Employee Performance (EP) through
Employee Motivation (EM) at RST Company.
(Bagas, 2020) research. Maslow's theory states that in motivating someone, it is
necessary to understand the person's level of existence in the hierarchy of needs and focus
on satisfying those needs. Companies provide project bonuses (PB) to incentivize
employees to meet the targets established by the company. Employees are required to give
their maximum ability so that the tasks and targets given by the company can be completed
properly. (Liaquat et al., 2024) conducted research indicating that employees' material needs
significantly influence Employee Motivation (EM), consequently affecting Employee
Performance (EP).
H7: Project Bonus (PB) has a significant effect on Employee Performance (EP) through
organisational Commitment (OC) at RST Company.
One of the employees' needs in the hierarchy of needs theory in (Baga, 2020) research
is esteem, or the need for appreciation. The need for appreciation from others, status, fame,
dominance, and pride are considered significant. And appreciation from others. People feel
the need to get recognition from others, which is in line with research by (Marrucci et al.,
2024), which found that giving employee bonuses affects company commitment. It can be
interpreted that companies that provide bonuses for Employee Performance (EP) in a timely
and structured manner will affect Employee Performance (EP). Another study by (Yao et
al., 2019) showed that giving rewards to the company as a form of its commitment to
appreciating employees will influence employee performance (EP).
H8: Employee motivation (EM) and organisational commitment (OC) interact to affect
employee performance (EP) at RST Company.
(Bagas, 2020) researched using Maslow's theory that humans are social creatures. This
need for affiliation arises instinctively and is related to motivating workers. One of the
implications of the demands for satisfying this need is the obligation of leaders to create a
work atmosphere such that interaction between workers occurs continuously. Therefore,
employees must show potential abilities that are different and better than others when
completing something. The opportunity to create and innovate is a common way companies
fulfil this need as a form of work commitment. (Taba, 2018) found that Employee
Motivation (EM) and organizational Commitment (OC) have a long-term impact on
Employee Performance (EP), driven by the company's decision-making processes.
Similarly, research by (Jawaad et al., 2019) and (Loor-Zambrano et al., 2022) indicates that
there is a positive and significant interaction between Employee Motivation (EM) and
organisational Commitment (OC) in enhancing Employee Performance (EP).
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METHODS
This research employs quantitative methods, utilising a cross-sectional approach. In
cross-sectional research, data is collected at a single point to analyse and draw conclusions
about the relationships between variables collected from respondents or units of analysis
that represent the population under study at a certain period (Sugiyono, 2019). This data
can be collected through surveys, interviews, or observations. This research then analyses
the relationship between the variables studied at the same point in time.
This study's population comprises RST Company employees employed for at least
one year. The study uses quantitative methods with a cross-sectional approach, aiming to
collect data simultaneously from various individuals or units within the population. A
simple random sampling method is applied, randomly selecting individuals from the
population.
According to (Malhotra et al., 2017), the population includes all elements sharing
common characteristics for marketing research purposes. (Hair et al., 2019) suggest that
sample size guidelines can be determined by multiplying the number of indicators by 5 to
10. With 150 indicators in this study, the sample size should range from 750 to 1500.
However, based on the results of the sample calculation, the authors chose 150 respondents
for this study.
(Malhotra et al., 2017) state that the minimum sample size required for marketing
research is 150 samples. (Hair et al., 2019) recommend a minimum sample size of 10 times
the number of independent variables in the research model for data processing using the
PLS-SEM method. With four independent variables in this study, the minimum required
sample size is 40 respondents. Additionally, the number of arrows pointing to latent
variables in the research model determines the minimum sample size. In this study, four
arrows lead to the employee performance (EP) variable, requiring a minimum of 40
respondents. Previous research by (Taba, 2018) used 100 respondents as the sample size.
Considering these expert recommendations, this study's minimum sample size is 150
respondents.
This study utilises a 5-point Likert scale with interval measurement, where equal
numeric distances on the scale represent equal values in measuring characteristics (Sekaran
& Bougie, 2020). The research model includes one exogenous variable (Project Bonus
(PB)), one endogenous variable (Employee Performance (EP)), and two mediating
variables (Employee Motivation (EM) and Organisational Commitment (OC)), which will
be used and explained in the study.
RESULTS
Respondents’ socio-demographic profile. The data collected in this study will
undergo validation and reliability testing. Data analysis will employ the Partial Least
Squares-Structural Equation Modelling (PLS-SEM) method using SmartPLS 4 software.
This approach comprises two primary analyses: outer model analysis, which illustrates the
relationship between constructs and their respective indicator variables (Hair et al., 2019),
including validity and reliability assessments, and inner model analysis.
Out of the 155 respondents who completed the questionnaire, data from 150
respondents was deemed suitable for analysis. The socio-demographic profile of
participants reveals a predominantly female group aged between 18 and 50 years, primarily
students pursuing a bachelor's degree (S1), as detailed in Table 2.
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Table 2. Respondents’ Socio-Demographic Profile
Variables
N = 150
Percentage
Sex
Male
131
87
Female
19
13
Age
More than 20 years old
28
19
21 to 30 years old
42
28
31 to 40 years old
45
30
41 to 50 years old
25
17
More than 50 years older
15
6
Profession
High school
12
8
Diploma
33
22
Bachelor’s degree
70
47
Postgraduate or higher
20
13
Education
1 to 2 years
21
15
Level
2 to 3 years
37
26
4 to 5 years
54
32
More than five years
38
27
Source: Data collection. Processed by the authors
Operationalization of Variables and Instruments. This study utilises 23 indicator
items, divided as follows: 5 indicators for project bonus (PB), seven indicators for
employee performance (EP), four indicators for employee motivation (EM), and seven
indicators for organisational commitment (OC). The questionnaire items and their
references are detailed in Table 3 below. According to the results, most respondents can
view transaction details as employees at RST Company.
Table 3. Questionnaire Items and References
Variables
Codes
Questionnaire Items
References
Project Bonus
(PB)
PB1
Get some cash
(Azis et
al., 2019)
PB2
Get bonuses in other intensive forms.
PB3
Achieve work targets
PB4
Contribute to the team.
PB5
Achieve the company's strategic goals.
PB6
Increase company revenue growth.
PB7
The company communicates and is transparent
regarding employee project bonuses (PB).
Employee
Performance
(EP)
EP1
Have competencies appropriate to the job
(Andreas.
2022)
EP2
Have skills appropriate to the job
EP3
Have skills appropriate to the job
EP4
Feel satisfied with the company.
EP5
Involved in core processes in the company
EP6
Have the ability to work in a team and achieve set
goals.
EP7
The company provides training opportunities.
EP8
The company effectively and efficiently manages
human resources.
EP9
The company has a work culture that supports high
performance.
Employee
Motivation
(EM)
EM1
Get a fair salary
(Ozkeser.
2019)
EM2
Have good relationships with coworkers
EM3
Have a positive work system.
EM4
Have a sense of responsibility when carrying out
tasks.
EM5
Have a sense of responsibility when making
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decisions.
EM6
Have the opportunity to learn.
EM7
Have the opportunity to develop skills.
EM8
Have the opportunity for career advancement.
Organisational
Commitment
(OC)
OC1
Have a vision and mission that are in line with the
company.
OC2
Have goals that are aligned with the company
OC3
Trust that the company treats you fairly.
OC4
Trust that the company provides job security.
OC5
Trust that the company fulfils the contracts it
provides
OC6
I feel satisfied with my work.
OC7
Feeling that work has value and meaning.
OC8
The company supports career development well.
OC9
The company provides opportunities to develop skills
that are required by the job.
CO10
Have good relationships with coworkers.
CO11
Have a sense of ownership of the team.
CO12
Have the opportunity to make decisions.
Outer Model Analysis. The sample data is then processed for outer and inner model
analysis. The outer model analysis includes both validity and reliability assessments.
Validity analysis in PLS-SEM is further divided into convergent validity and discriminant
validity.
Based on the convergent validity and reliability test results shown in Table 4, it is
observed that the Project Bonus (PB) has an AVE value of 0.565 and a Cronbach's Alpha
of 0.866. Employee Performance (EP) has an AVE value of 0.630 and a Cronbach's Alpha
of 0.919. Employee Motivation (EM) has an AVE value of 0.501 and a Cronbach's Alpha
of 0.908. Lastly, the organisational commitment (OC) variable has an AVE value of 0.508
and a Cronbach's alpha of 0.854. As shown in Table 4, the Average Variance Extracted
(AVE) values exceed 0.500, indicating that all variables are valid (Hair et al., 2019).
Additionally, Cronbach's Alpha values all surpass 0.600, confirming the reliability of the
data. Therefore, the data is suitable for the next stage of analysis.
Table 4. Convergent Validity and Reliability Analysis
Item
AVE
Cronbach's Alpha
Project Bonus (PB)
0.565
0.866
Employee Performance (EP)
0.630
0.919
Employee Motivation (EM)
0.501
0.908
Organisational Commitment (OC)
0.508
0.854
Source: Processed by Smart PLS 4
The inner model analysis elucidates how constructs interrelate based on theoretical
frameworks and logical reasoning (Hair et al., 2019). According to the effect size (f2)
results presented in Table 5, the Project Bonus (PB) variable exhibits a minor influence on
employee performance (EP) with a value of 0.077 and on employee motivation (EM) with
a value of 0.028. In contrast, it substantially influences organisational commitment (OC),
with a value of 0.374. Conversely, the organisational commitment (OC) variable shows a
minor influence on employee performance (EP) with a value of 0.036 while exerting a
moderate influence on employee motivation (EM) with a value of 0.137. Meanwhile, the
mediating variable, Employee Motivation (EM), exhibits a moderate influence on
Employee Performance (EP), with a value of 0.331.
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Table 5. F2: Path Coefficient and P-Value Analysis
Path
Coefficient
P-Values
Project Bonus (PB) > Employee Performance (EP)
0.077
0.312
0.009
Project Bonus (PB) -> Organisational Commitment
(OC)
0.028
0.259
0.010
Project Bonus (PB) > Employee Motivation (EM)
5.874
0.924
0.000
Organisational Commitment (OC) > Employee
Performance (EP)
1.331
0.834
0.000
Employee Motivation (EM) -> Employee
Performance (EP)
0.036
-0.223
0.070
Employee Motivation (EM) > Organisational
Commitment (OC)
0.137
0.567
0.000
Project Bonus (PB) -> Employee Motivation (EM) ->
Employee Performance (EP)
0.069
Project Bonus (PB) -> Organisational Commitment
(OC) -> Employee Performance (EP)
0.011
Employee Motivation (EM) > Organisational
Commitment (OC)
0.000
Source: Processed by Smart PLS 4
The Path Coefficient results in Table 5 reveal several vital relationships. The path
coefficient between the Project Bonus (PB) variable and Employee Performance (EP) is
0.312, indicating a positive relationship. Similarly, the path coefficient between project
bonus (PB) and organisational commitment (OC) is 0.259, which also shows a positive
relationship. Project Bonus (PB) demonstrates a strong positive relationship with
Employee Motivation (EM), with a path coefficient of 0.924. Organisational Commitment
(OC) positively influences Employee Motivation (EM) with a path coefficient of 0.834.
The path coefficient for employee motivation (EM) and organisational commitment (OC)
is 0.567, indicating a positive relationship. However, Employee Motivation (EM)
negatively influences Employee Performance (EP), with a path coefficient of -0.223.
Regarding the p-values in Table 5, they test the hypotheses formulated in the
research. Project Bonus (PB) significantly affects employee performance (EP) with a p-
value of 0.009 and similarly affects organisational commitment (OC) with a p-value of
0.010. Project Bonus (PB) significantly impacts Employee Motivation (EM) with a p-value
of 0.000. Organisational Commitment (OC) significantly affects Employee Performance
(EP) with a p-value of 0.000. However, employee motivation (EM) does not significantly
influence employee performance (EP), with a p-value of 0.070; it significantly influences
organisational commitment (OC), with a p-value of 0.000. The mediating effect of Project
Bonus (PB) through Employee Motivation (EM) on Employee Performance (EP) has a p-
value of 0.069, indicating no significant effect.
In contrast, the mediating role of Project Bonus (PB) through Organisational
Commitment (OC) on Employee Performance (EP) has a p-value of 0.011, indicating a
significant influence. The interaction between employee motivation (EM) and
organisational commitment (OC) has a p-value of 0.000, indicating a significant influence.
Based on the p-values, 2 out of 8 hypotheses show no significant effects.
Furthermore, the coefficient of determination (R2) test in Table 6, which ranges
between 0 and 1, indicates the explanatory power of variables in the study (Hair et al.,
2019). Employee performance (EP) has an R2 value of 0.822, and organisational
commitment (OC) has an R2 value of 0.855, both categorised as vital. Employee
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motivation (EM) has an R2 value of 0.659, categorised as moderate.
Table 6. R2 Analysis
In Figure 2, the t-statistics and p-values in the path analysis between variables through
the bootstrapping method show whether this study tested its hypothesis.
Figure 2. PLS-SEM Algorithm Result
DISCUSSION
The H1 test results indicate that the acceptance of the Project Bonus (PB) directly
and significantly impacts Employee Performance (EP) for employees of RST Company.
This finding aligns with the research conducted by (Liaquat, 2024), which asserts that
rewards positively affect a company's performance. Employees who can achieve and
surpass the targets set by management within a specified time frame are eligible for a more
substantial project bonus. At PT XYZ, the Project Bonus is a benchmark for completed
work. This approach is underscored by PT XYZ's practice of providing a Project Bonus
based on the reference value of the work completed. This aligns with (Taba's, 2018)
revelation that a bonus is a lump-sum payment awarded for meeting performance goals.
Bonuses can be contingent on achieving objective goals or based on subjective
assessments. Therefore, the better the Project Bonus (PB) provided, the better the
company's performance. This is due to the company's management effectively managing
its Human resources and facilitating their development through bonuses.
Consequently, the project bonus (PB) can motivate an employee at RST Company
R2
Employee Performance (EP)
0.822
Organisational Commitment (OC)
0.855
Employee Motivation (EM)
0.659
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to work more efficiently, enhancing their performance. Employees at RST Company who
perform their duties diligently and improve their work performance contribute to
increasing profits. Thus, the company offers its employees attractive project bonuses (PB).
Providing project bonuses (PB) fairly and transparently can foster a sense of trust in
management among employees (Ariani et al., 2020).
In the testing of H2, it was found that the direct relationship between Project Bonus
(PB) and Employee Motivation (EM) significantly influences RST Company. This finding
is consistent with the research by (Alcover et al., 2020), which indicates that Project Bonus
(PB) affects Employee Motivation (EM) through factors such as appropriate salary
alignment, overtime compensation, innovative contributions, and positive interpersonal
relationships. Employee motivation (EM) at RST Company is a driving force that fosters
enthusiasm and efficient work and aligns efforts towards achieving satisfaction. This
motivation, derived from external factors, reflects employees' needs and desires, as
highlighted by (Liaquat, 2024). Moreover, (Nurrohmat & Lestari, 2021) discovered
significant relationships between Employee Motivation (EM) and work performance.
Regarding H3, the indirect relationship between project bonus (PB) and
organisational commitment (OC) significantly impacts RST Company, supporting Taba's
(2018) findings on the effect of rewards and bonuses on organisational commitment (OC).
At PT RST, the consistent provision of project bonuses based on team or individual
achievements underscores the company's commitment to appreciating employees' hard
work. This consistent reward system positively influences organisational commitment
(OC) by demonstrating the company's dedication to recognising employee efforts. This
finding aligns with previous research by (Taba, 2018), indicating that rewards significantly
affect organisational commitment (OC) as a mediator, subsequently influencing job
satisfaction through adequate compensation and recognition practices.
The results of H4 reveal that the indirect relationship between Employee Motivation
(EM) and Employee Performance (EP) significantly impacts RST Company. This finding
is consistent with (Liaquat's, 2024) research, which highlights the impact of Employee
Motivation (EM) on job performance. However, the uniform distribution of project
bonuses at RST Company, as opposed to merit-based rewards, diminishes their
motivational effect, as (Kitsios et al., 2021) observed. Individual motivation remains
crucial for enhancing company performance, emphasising the intrinsic drive needed for
practical task completion.
In H5, the indirect relationship between organisational commitment (OC) and
employee performance (EP) significantly influences RST Company, consistent with
(Jawaad et al., 2019), who emphasises the pivotal role of organisational commitment in
enhancing employee performance within the company. Higher levels of organisational
commitment (OC) are positively correlated with job satisfaction and sustained
organisational effort, as supported by (Meutia & Husada, 2019). Conversely, lower levels
of normative commitment may reflect employees' perceptions of minimal contribution to
organisational goals, influencing their decisions to remain with the company.
The findings from H6 indicate that the indirect relationship between project bonus
(PB) and employee performance (EP) through employee motivation (EM) does not
significantly impact RST Company. This aligns with (Chen & Cuervo's, 2022) research,
which highlights the limited effect of intrinsic rewards on employee performance (EP). At
RST Company, employee motivation (EM), driven primarily by external motivators like
financial incentives, must consistently enhance work patterns or job outcomes. This
reflects the complex interplay between different types of motivation and their influence on
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253
performance, as noted by (Sutanjar & Saryono, 2019).
H7 demonstrates that the direct and significant impact of Project Bonus (PB) on
Employee Performance (EP) through Organisational Commitment (OC) aligns with (Yao
et al., 2019), underscoring the role of rewards in bolstering Employee Performance (EP)
through enhanced Organisational Commitment (OC). At RST Company, bonuses serve as
esteem needs, fostering employee motivation and commitment, as theorised by Maslow
(Bagas, 2020). Furthermore, the consistent provision of bonuses correlates positively with
employee performance (EP), highlighting their role in motivating employees and driving
organisational success, consistent with (Francis et al., 2020).
Lastly, H8 reveals that the direct and significant influence of the interaction between
employee motivation (EM) and organisational commitment (OC) on employee
performance (EP) at RST Company aligns with (Taba, 2018), emphasising the substantial
impact of rewards on job performance and organisational commitment (OC). This finding
underscores the integral role of organisational commitment in driving employee
performance and organisational outcomes. (Jawaad et al., 2019) support this by stressing
the mediating role of job satisfaction in linking HR practices with organisational
commitment (OC) and performance improvements.
As presented in (Bagas, 2020) research, Maslow's theory explains that employees
must demonstrate their potential abilities, distinguishing them from others in completing
tasks. Companies often fulfil this need by providing opportunities to create and innovate,
which fosters a sense of work commitment. Motivation acts as a catalyst, driving
employees to utilise their full abilities and skills towards achieving company goals. High
levels of work motivation among employees can significantly enhance job commitment.
This aligns with the findings of (Ariani et al., 2020), suggesting that motivated employees
are more likely to engage actively in their work and contribute productively. According to
the hierarchy of needs theory, organisational success hinges on fulfilling employee needs,
thus fostering greater productivity and personal growth as individuals achieve higher levels
of self-actualization. Motivated employees tend to work diligently and are goal-oriented.
With motivation, employees will stay engaged and improve performance, enabling the
company to achieve its objectives. Motivation is the ability to achieve a common purpose
by ensuring that the organisation's needs and desires align with those of its members.
Expanding on the concepts discussed, the relationship between project bonuses and
employee performance, as highlighted by (Liaquat, 2024), suggests that financial
incentives are crucial in motivating employees to achieve and exceed their targets. This
creates a culture of excellence and competition within the organisation, driving employees
to perform at their best. The project bonus system at PT XYZ, which uses completed work
as a benchmark, is a practical implementation of this theory. This system rewards
employees for hard work and sets clear expectations and goals, enhancing overall
productivity and performance.
(Taba's, 2018) research further emphasises that bonuses can be based on both
objective goals and subjective assessments. This dual approach ensures that employees are
recognised for measurable achievements and qualitative contributions, such as innovation
and teamwork. At PT RST, the fair and transparent distribution of project bonuses is
critical to maintaining employee trust and motivation. (Ariani et al., 2020) highlight the
importance of fairness in bonus distribution, suggesting that employees are more likely to
be motivated and committed to their work when they perceive the reward system as just.
(Alcover et al., 2020) provide additional insights into the factors influencing
employee motivation through project bonuses. By aligning salaries appropriately and
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compensating for overtime and innovative contributions, companies can ensure that
employees feel valued and motivated. Positive interpersonal relationships within the
organisation also play a crucial role in maintaining high motivation. At RST Company,
fostering a supportive work environment is critical to sustaining employee motivation and
enhancing performance.
As (Taba, 2018) and (Jawaad et al., 2019) discussed, the significant impact of
organisational commitment on employee performance highlights the importance of a
committed workforce in achieving organisational goals. Various factors influence
organisational commitment, including recognition, compensation, and a supportive work
environment. (Meutia & Husada, 2019) suggest that higher levels of organisational
commitment are associated with increased job satisfaction and sustained effort, leading to
better performance outcomes. Conversely, low levels of normative commitment indicate a
need for more alignment between employees' personal goals and the organisation's
objectives, potentially leading to higher turnover rates.
(Chen & Cuervo, 2022) and (Sutanjar & Saryono, 2019) further explore the complex
relationship between project bonuses, employee motivation, and employee performance.
While financial incentives effectively motivate employees, they may only sometimes
improve performance if other motivational factors are addressed. At RST Company,
emphasis on external motivators like bonuses must be balanced with intrinsic motivators,
such as opportunities for personal growth and development. This balanced approach can
ensure that employees remain engaged and perform at their best.
(Yao et al., 2019) and (Francis et al., 2020) highlight the role of project bonuses in
enhancing organisational commitment and subsequently improving employee
performance. By consistently providing bonuses, RST Company can reinforce its
commitment to recognising and rewarding employees' efforts, thereby fostering a loyal and
motivated workforce. This approach aligns with Maslow's theory, which suggests that
fulfilling employees' esteem needs can lead to higher levels of self-actualization and
productivity.
As (Taba, 2018) and (Jawaad et al., 2019) discussed, the interaction between
employee motivation and organisational commitment underscores the importance of
creating a work environment that supports personal and organisational goals. RST
Company can enhance job satisfaction, organisational commitment, and overall
performance by aligning HR practices with employees' needs and desires. This holistic
employee motivation and commitment approach is essential for long-term organisational
success.
In conclusion, the various hypotheses tested in the research collectively underscore
the critical role of project bonuses in influencing employee performance, motivation, and
organisational commitment at RST Company. By adopting a fair and transparent reward
system, aligning salaries and compensation with performance, and fostering a supportive
work environment, RST Company can ensure that its employees remain motivated,
committed, and productive. This comprehensive approach to managing human resources
is essential for achieving sustained organisational success and maintaining a competitive
edge in the market. organizational
CONCLUSION
This study concludes with several key findings. First, the project bonus (PB)
significantly and directly influences employee performance (EP), as indicated by a p-value
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of 0.009. This demonstrates that employees' financial rewards for achieving or exceeding
their project targets are crucial in enhancing their performance. employeeSecondly, the
study found that the project bonus (PB) also has a significant and direct impact on
employee motivation (EM), with a p-value of 0.000. This underscores the importance of
financial incentives in boosting the enthusiasm and drive of employees to perform their
tasks more effectively. Thirdly, the research shows that the project bonus (PB) significantly
and directly influences organisational commitment (OC), with a p-value of 0.010. This
finding suggests that when employees are rewarded adequately for their efforts, their
loyalty and commitment to the organisation increase.
However, the study also reveals some nuances. For instance, employee motivation
(EM) was found to have no significant and direct influence on employee performance (EP),
as indicated by a p-value of 0.070. This suggests that while motivation is essential, it may
only directly translate to enhanced performance in the presence of other factors. On the
other hand, organisational commitment (OC) significantly and directly influences
employee performance (EP), with a p-value of 0.000. This highlights the critical role of
employees' loyalty and commitment to the organisation in driving their performance.
Furthermore, the research indicates that the project bonus (PB) does not significantly
influence organisational performance through the mediating variable of employee
motivation (EM), as shown by a p-value of 0.069. This finding suggests that while bonuses
can boost motivation, this does not necessarily lead to improved organisational
performance through this pathway. In contrast, the project bonus (PB) does have a
significant and direct influence on organisational performance through the mediating
variable of organisational commitment (OC), with a p-value of 0.000. This implies that
bonuses enhance performance by fostering a greater sense of loyalty and commitment
among employees.
Additionally, the study finds a significant interaction between employee motivation
(EM) and organisational commitment (OC) as mediating variables on employee
performance (EP), with a p-value of 0.000. This indicates that the combined effect of
motivation and commitment significantly enhances employee performance, underscoring
the importance of addressing both factors simultaneously.
Despite these findings, the study acknowledges several limitations. Firstly, it is
constrained by focusing on only four variables: one exogenous (Project Bonus (PB), one
endogenous (Employee Performance (EP)), and two mediating variables (Employee
Motivation (EM) and Organisational Commitment (OC)). Future researchers are
encouraged to broaden their investigations by incorporating additional variables, such as
employee work quality, as suggested by (Taba, 2019). Expanding the scope of variables
could provide a more comprehensive understanding of the dynamics at play.
Secondly, this research is limited to employees of RST Company, based in Jakarta.
Future studies could encompass multiple companies across different regions or industries
to enhance the generalizability of the findings. This broader approach would yield more
comprehensive insights and allow for comparing results across various contexts, thereby
strengthening the study's conclusions.
Thirdly, the sample size was restricted to 150 respondents due to time constraints,
which may limit the study's scope compared to larger-scale journal research. To improve
the robustness and reliability of the findings, future researchers should consider increasing
the sample size beyond 150 respondents. A larger sample size would enhance the study's
statistical power and provide more accurate estimates of the relationships between
variables.
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Lastly, this study employed a cross-sectional research design, collecting data
simultaneously. While this approach provides a snapshot of the relationships between
variables, it does not capture temporal changes or the long-term impacts of these variables.
Future investigations could benefit from longitudinal studies that collect data over multiple
time points. Longitudinal research would allow researchers to observe how the
relationships between variables evolve and provide deeper insights into the enduring
impacts of project bonuses, motivation, and organisational commitment on employee
performance.
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ACKNOWLEDGEMENTS
The authors would like to thank the support and guidance from supervisor lecturers,
family, relatives, friends, and all respondents who participated in finishing this research.
ResearchGate has not been able to resolve any citations for this publication.
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Job satisfaction can improve the performance of employees of a company. The phenomenon that occurs at PT Kahatex in Bandung Regency shows that poor job satisfaction can result in employees often going in and out and not surviving in the company for a long period of time. In addition, the implementation of activities with main tasks and functions that are not in accordance with the expectations of the organization is the result of poor employee performance. This investigation means to have the option to clarify work fulfillment, representative execution and the greatness of the impact of occupation fulfillment on worker execution at PT Kahatex in Bandung Regency. The sample in this study was PT Kahatex in Bandung Regency, namely all employees at PT Kahatex in Bandung Regency. The information assortment method utilized is as a survey with 30 respondents. The example determination method in this examination is a non-probability sampling technique with a convenience sampling technique. Hypothesis testing used is simple linear regression. The results showed that job satisfaction and employee performance at PT Kahatex in Bandung Regency were included in the "good" criteria. Job satisfaction has an effect on employee performance at PT Kahatex in Bandung Regency. Abstrak. Kepuasan kerja bisa meningkatkan performa karyawan suatu perusahaan. Fenomena yang terjadi pada PT Kahatex Kabupaten Bandung menunjukan bahwa kepuasan kerja yang buruk dapat mengakibatkan karyawan sering keluar masuk dan tidak bertahan dalam jangka waktu cukup panjang di perusahaannya. Selain itu, pelaksanaan kegiatan-kegiatan dengan tugas pokok dan fungsi yang belum sesuai dengan harapan organisasi merupakan akibat dari kinerja karyawan yang buruk. Penyelidikan ini berarti memiliki pilihan untuk memperjelas pemenuhan pekerjaan, pelaksanaan perwakilan dan besarnya dampak pemenuhan pekerjaan terhadap pelaksanaan pekerja di PT Kahatex di Kabupaten Bandung. Sampel dalam penelitian ini adalah PT Kahatex di Kabupaten Bandung yaitu seluruh karyawan pada PT Kahatex di Kabupaten Bandung. Metode pengumpulan informasi yang digunakan adalah survei dengan 30 responden. Contoh metode penentuan dalam pemeriksaan ini adalah non probality sampling dengan teknik convenience sampling. Pengujian hipotesis yang digunakan adalah regresi linier sederhana. Hasil penelitian menunjukan bahwa kepuasan kerja dan performa karyawan pada PT Kahatex di Kabupaten Bandung termasuk dalam kriteria “Baik”. Kepuasan kerja berpengaruh terhadap Kinerja karyawan pada PT Kahatex di Kabupaten Bandung.
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Asbtract Purpose the main objective of this article is to check whether the relationship between corporate social responsibility activities and employee commitment is mediated by the existence of two other attitudinal variables of workers: intrinsic motivation and trust towards the organisation. Design/methodology/approach a survey of 318 Ecuadorian workers provides data that allows the application of structural equation modelling to verify the existence of such relationships. Findings the work shows a positive and significant relationship between CSR actions and the two attitudes of the employees considered: trust and intrinsic motivation. Furthermore, the mediating character that both variables play in the relationship between CSR and organisational commitment is confirmed. Ecuadorian managers can infer from this study the positive effects that CSR practices have on various attitudes and behaviors of employees, such as their motivation at work, their confidence in the company and their commitment to it. Research limitations/implications the scant generalisation of its results to the Ecuadorian reality given that the firms are located in a single zone of the country and belong to a specific activity. Practical implications new determinant factors of the relations between the endogenous and exogenous variables could be included. Social implications the consideration of other variables which could condition the relations studies: sex, age, etc. Originality/value the work increases the already existing knowledge about the relationship between CSR and different attitudes and behaviours of employees within formal work organisations.