Abstract

The purpose of this research is to develop a measurement model and a structural model of employee’s job satisfaction based on employee promotion and Upward-downward communication, through the work environment at PT. Holcim Indonesia, Tbk. This research uses a survey method, involving 360 permanent employees of PT. Holcim Indonesia as the population and 190 employees as the sample (respondents). The determination of sample uses a proportional random sampling technique. The analysis technique used is Structural Equation Modeling (SEM) with the Lisrel and SPSS programs. The result reveals that employee promotion, upward-downward communication, and work environment have a positive direct effect on employee’s job satisfaction. The upward-downward communication has the most dominant effect on job satisfaction. Furthermore, employee promotion and upward-downward communication have a positive direct effect on the work environment of employees. Employee promotion has the most dominant effect on the work environment. The conclusion of this research is that employee promotion, upward-downward communication, and work environment not only have a direct effect on employee’s job satisfaction, but also employee promotion and upward-downward communication have an indirect effect on employee’s job satisfaction through work environment as an intervening variable