THE RELATIONSHIP BETWEEN INCENTIVES AND ORGANIZATIONAL PERFORMANCE FOR EMPLOYEES: THE STUDY OF ISLAMIC PRIVATE UNIVERSITIES IN YOGYAKARTA

Abstract

This study is a quantitative research and aimed to discover the influence of financial incentives and moral incentives toward learning and growth, internal business process, and employees’ effort to reach customer satisfaction by employees as the media of organizational performance of three biggest Islamic private universities in Yogyakarta. There are 205 respondents who are working as administrators and lecturers in this research. This study used survey data collection method through questionnaires with a six points likert scale model as the data collection instrument. The data were analyzed by using Classic assumptions test analysis, t test analysis, and f test analysis utilizing SPSS version 25.0. The results of this study showed that (1) financial incentives and moral incentives have a significant relationship toward learning and growth, (2) financial incentives and moral incentives have a significant relationship toward internal business process, (3) financial incentives and moral incentives have a significant relationship toward employees’ effort to reach customer satisfaction, (4) financial incentives and moral incentives have a significant relationship toward learning and growth, internal business proses, and employees’ effort to reach customer satisfaction as the mediums of organizational performance.