The impact of human resource management with regard to the reward system on the organizational performance improving
The impact of human resource management with regard to the reward system on the organizational performance improving

Summary/Abstract: This study investigates the effect of reward systems on organizational performance in Indonesian companies. The research adopts a descriptive survey design with an applied orientation. Data were collected in 2024 from a sample of 400 employees and managers working in Jakarta-based firms and analyzed using correlation and regression techniques. The findings reveal that all components of the reward system are positively and significantly associated with organizational performance. Regression results indicate that reward system variables explain 47.8% of the variance in employee productivity, with reward justice emerging as the strongest predictor (β = 0.365). In addition, employee satisfaction was found to mediate the relationship between reward justice and productivity, with an indirect effect of 0.275. These results highlight the importance of implementing flexible and fairness-based reward systems to enhance organizational performance.

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