The Management Journal of BINANIAGA Vol. 01, No. 1, 2016 ISSN: 2527 - 4317 Indah Kusuma Hayati: Analysis of Quality of Worklife (QWL) Implementation Against Job Satisfaction and Commitment of the Employees Page : 9 Research: ANALYSIS OF QUALITY OF WORKLIFE (QWL) IMPLEMENTATION AGAINST JOB SATISFACTION AND COMMITMENT OF THE EMPLOYEES. By: INDAH KUSUMA HAYATI Lecturer at STIE Binaniaga Bogor Abstract. Increased productivity needs being in line with the increase in employee performance. To be able to improve employee performance, companies must create working conditions that offer incentives for employees to satisfy them with the system running in the company(????). The purpose application of Quality of Work Life (QWL) in an enterprise is to improve employee satisfaction on the job(???). Employee job satisfaction is one important aspect to consider in efforts to improve the human resources quality of an enterprise. Employees who have high job satisfaction, will generally have a high commitment to the company. High employee commitment will give beneficial contribution to the company to increase productivity of both employees and companies. This study aims to analyze the effect of the QWL application on job satisfaction and employee commitment as well as analyzing the effect of job satisfaction on employee commitment. The study is conducted by giving questionnaire to 120 employees SBU (Strategic Business Unit) 1 PT. PGN, which is present in three areas, namely Hosbun, Bogor and Jakarta East. Hypothesis testing method using the model Structural Equation Model (SEM) with PLS.The results of the analysis indicate that the application of QWL hypothesis has no effect on job satisfaction of employees. Application of QWL and job satisfaction significantly influence employee commitment. The better implementation of QWL and the higher levels of job satisfaction will increase employee commitment to the company. Keywords : Quality of work life, job satisfaction and employee commitment, SEM PLS INTRODUCTION Job satisfaction is one of the main factors to improve the productivity of a company. An employee who has obtained a high job satisfaction will have a high commitment to work for. Commitment of the employees is a very crucial factor for a company because it will contribute to develop either company’s productivity or employee’s productivity. One of the objectives of the company to implement Quality of Work Life (QWL) is to develop the commitment and job satisfaction of the employees. QWL factors which has been utilized to measure an employee’s job satisfaction and commitment are as follows; evolvement the employee’s participation, career development, conflict / solving problems, communication, healtht and safety at work, good compensation, and being proud of the organization (Cascio, 2006). PT Perusahaan Gas Negara (State Gas Limited Company) or PGN is a state own company (BUMN) which is dealing business in gas distribution and transmission. It has been selling its shares to public (go public). Mid of 2011 the complete aggregate net profit of 18 go public state own companies had increased 36.44 % comparing to 2010. In 2010 PGN recorded an increment of 17.7 % profit which is Rp 9.04 quintillion against 7.676 quintillion, it has explained the development of the companies. Based on the aforementioned explanation, some variables to be analysis are as follows: (1) What factors are reflecting the implementation of QWL at PT PGN according to the employees’ perception. (2) How good are the job satisfaction and commitment of the employees at PT PGN? (3) How is QWL implementation reflecting to the job satisfaction and commitment of the employees at PT PGN?