The Effect of Compensation Suitability and Internal Control System on Employee Performance with Reinforcement as A Moderating Variable

This study aims to examine empirically the effect of compensation suitability and internal control system on employee performance with reinforcement as a moderating variable. Respondents in this study were all Regional Apparatus Organizations in Bandar Lampung City. This study uses a quantitative approach with primary data as a data collection method with a snowball sampling scheme, the result is 41 employees of Regional Apparatus Organizations in Bandar Lampung City used as respondents in this study. The method of analysis and hypothesis testing used in this study is Structural Equation Modeling (SEM) with Wrap Pls 8.0 analysis tool. The results of this study indicate that compensation suitability and internal control system have a significant effect on employee performance. Meanwhile, reinforcement has no significant effect in moderating the relationship between compensation suitability and internal control system on employee performance. These findings indicate that compensation suitability and internal control system are able to improve employee performance at Regional Apparatus Organizations in Bandar Lampung City, so taking this into consideration the goals of the organization can be achieved with the work program that has been set that has been determined to be carried out optimally. Furthermore, Reinforcement strengthens the relationship between Compensation Suitability and Employee Performance. Meanwhile, Reinforcement can weaken the relationship between the internal control system and employee performance.