ABSTRACT: This research
explores the personal factor particularly the individual competence and
management factor including the reward and punishment system related to the
efficiency as marked by the work satisfaction and financial performance, and
the local financial independence. For such purpose, the research applies
quantitative analysis employing SEM analysis. This quantitative research takes
an explanatory method orienting on structural equation modeling as a model for
analysis. The population are the office leaders and UPTD of North Sulawesi
Province comprising top, middle, and lower manager who are responsible for
financial management. The sample is determined by way of multistage sampling.
Based upon that particular consideration, The sample are 273 people randomly
collected. Data are gathered by distributing questionnaire using Likert Scale
model while Amos program is used for data analysis. The result shows that 1)
the individual competence directly and significantly influences the performance
of the local government in North Sulawesi both on the work satisfaction and
financial performance, 2) the compensation management (reward and punishment
system) directly and significantly influences the work satisfaction and
financial performance, 3) the work satisfaction directly and negatively
influences upon the financial performance yet it is not significant, 4) In
North Sulawesi Province, the individual competence and management compensation
influence the financial performance as indicated by the work satisfaction.
Keywords: Individual
competence, Compensation management, the local government’s financial
performance
Penulis: Johny Manaroinsong
Kode Jurnal: jpmanajemendd110023
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