Abstract

This research was designed to identify the factors as antecedent and consequences of employee satisfaction. Variables of this research are trust in interaction, quality of work life, employee competencies, work satisfaction, and performance. Research was conducted because there is a decreasing trend on financial performance at PDAM from 2007 until 2009. The population at the research are the employee at PDAM amount 153 employees. Sample was designed by sensus. Questionare use 5-point Likert sacle (strongly agree - strongly disagree). The variables used at this research are confidence interaction, quality of work life, employee competencies as independent variable. Work satisfaction as an intervening variable, and performance as a dependent variable. Partial Least Square (PLS) used to analysis with structural equation modelling. The result show that from the first model, quality of work life and employee competencies have significant impact on work satisfaction, but confidence interaction has no significant impact on employee satisfaction. In the second model, quality of work life, employee competencies, and work satisfaction have significant effect on performance. From the mediating effect of work satifaction, confidence interaction has no significant impact on work satisfaction and performance, so we can conclude that work satisfaction is not moderating the relationship between confidence interaction and performance.

Keywords: confidence interaction, quality of work life, employee competencies, work satisfaction, performance