IS JOB SATISFACTION MEDIATING THE RELATIONSHIP BETWEEN COMPENSATION STRUCTURE AND ORGANISATIONAL COMMITMENT? A STUDY IN THE MALAYSIAN POWER UTILITY

The study examines job satisfaction to mediate the relationship between compensation structure and organisational commitment on 62 respondents, working across job positions and classifications in a power utility-based organisation, in the Peninsula Malaysia. Previous studies in the field of organisational psychology has shown the importance of compensation as one of the main organisational factor that affect organisational effectiveness, but studies have also shown that there were no direct link between the two constructs. Based on the assumption, that a mediator to play a role in linking compensation to the organisational outcome construct, it was hypothesised that job satisfaction mediates the relationship between compensation and organisational commitment—an organisational outcome considered in the study as the dependent variable. Data were statistically analysed, and results showed job satisfaction to appear as a significant mediator between the studied variables