The Mediating Role of Perceived Organization Support on the Effect of Intrinsic and Extrinsic Rewards on Organizational Commitment among the Employees of Madukismo Sugar Factory Yogyakarta

Abstract

This study aims to identify the mediating role of perceived organizational support on the impact of intrinsic and extrinsic reward towards organizational commitment. The analysis unit of this study were employees of Madukismo Sugar Factory, Yogyakarta  who had been working permanently for more than 15 years. Proportional random sampling was employed to collect the data of 210 respondents. Data is analyzed with SPSS 22.0 for descriptive analysis, and Analysis of Moment Structure (AMOS) version 22.0  for inferential analysis.  The hypothesis testing results showed that intrinsic and extrinsic reward positively and significantly affect the perceived organization support. Intrinsic reward does not affect organizational commitment.  Extrinsic reward and the perceived organizational support positively and significantly affect the organizational commitment.  The perceived organizational support mediates the effect of intrinsic and extrinsic reward toward the organizational commitment.

Keywords: intrinsic reward, extrinsic reward, perceived organizational support, organizational commitment