Analysis The Effect of Work Motivation And Competence on Employee Performance (Study on Employee’s PT JCI Padang, West Sumatera)
1. Introduction
4.4. Effect of Competency on Employee Performance
The second hypothesis, i.e., the effect of competency on employee performance, had a path coefficient value of 0.333 and p-value of 0.006. The analysis result of p-value was < 5%, indicating that KOM (X2) or competency had a positive and highly significant effect on KNJ (Y1) or employee performance by 0.333. Therefore, based on this statement, the second hypothesis (H2) was accepted. The better the employee competency, the better their performance. From respondent characteristics, employees of PT JCI were graduates of high school/equivalent, at the minimum, and most had a Bachelor’s degree. A higher education level allows one to store information from the company, be it commands, knowledge, ideas, and others. From the age aspect, all employees of PT JCI were in the
productive age group, ranging from 21 to 47 years. This statement is encouraged by BPS (Statistics Central Bureau), determining that the population within the productive age range falls between 15-64 years old. Meanwhile, from the working experience aspect, employees who have been working at PT JCI for 11-15 years had excellent competency. It is supported by Handoko (2009), suggesting that the more extensive the work experience of employees, the more skilled they are to take actions in achieving the goal. Comes about from Tutu & Constantin (2011) investigate affirm the presence of a solid relationship between performance and competency: we found positive relationships between job performance and current work competency level.
This result follows previous findings revealed by Sujiati et al. (2017), Ayu Yuliantini et al. (2017), Mubarok and Putra (2018), Martini et al. (2018), and Suhasto and Lestariningsih (2018), where competency significantly and positively affected employee performance. The competency variable in this study was manifested through three indicators, i.e., knowledge, skill, and attitude. The loading factor values of the three indicators measuring the competency variable are presented in table 1. Based on table 1, the indicator with the highest loading factor value is knowledge, by 0.926. Knowledge is information possessed by employees in working on a task and responsible according to their field.
Employee knowledge is provision to do the work and determine the final result whether the task can run well. Employees with sufficient knowledge will improve the company efficiency.
Subsequently, higher job performance is likely to rise when the ability or the competencies of an employee is steady with the individual needs and his/her organizational environment. The ability of individual reflects his/her values, vision, information, competencies, interest and style whereas career victory and job requests are formed by role responsibilities and allocated tasks (Trivellas et al., 2015).
Based on the field observation, respondents stated that employees understand the job following the organizational rule, supported by written job descriptions. During the recruitment process, employees were selected according to their education level, abilities, major, and position requirements in the company.
At the start of work, a probation period for three to six months is mandatory for new employees.
Available online at HABITAT website: http://www.habitat.ub.ac.id Each employee must master their duties to
maintain their position. The company also assists employees to understand their job application following the job description through training, workshops, and seminars. Besides mastering the job description, employees are expected to be creative to deliver ideas not to be diverted from the organizational goal. However, not all employees are creative. Some are outstanding, and some are standard.
The indicator with the second highest value was skill with a loading factor value of 0.923. Skills are employee efforts to work on their duties and responsibilities incurred by the company with totality. Based on the field observation findings, respondents asserted that problems in the company are usually solved by leaders, and employees merely work following the command. However, subordinates are asked to sound ideas to be considered by leaders in solving problems. Discussion to handle issues are followed by good communication. Thus, it was concluded that employees of PT JCI Padang Unit could communicate well with co-workers. The company employees also have skills in maximally completing their job aided by written job descriptions and SOP (Standard Operating Procedure). Employees can also cooperate well in a teamwork since the jobs in the company are interrelated between people or departments.
The lowest-rated indicator in the competency variable was attitude, with a loading factor value of 0.910. Attitude or behavior is a reaction from employees in working on their duties and responsibilities following the organization’s stipulation. If the employees contribute on the organizational achievement, they subconsciously strive to deliver the best effort in completing their duties. Based on the field observation findings, respondents mentioned that employees have followed the company’s regulation concerning job and contributed maximally under the SOP and job description. It aims so that the results of the work can be accounted for. Employees can also handle issues according to their level wisely since they are equipped with training from the management related to problem-solving; hence, the issue can be solved with the leader.
According to Marwansyah (2012), competency is a vital element for employee and company advances since it directly affects organizational performance and productivity.
Competent employees will influence the
company to strive and develop. A company requires employees believing in their abilities and are ready to face challenges and problems.
Problems encountered by employees are a chance to develop their abilities. Following the observation data, in general, the company has good competency characteristics. Knowledge related to the job can improve employee performance. In achieving this goal, employees must comprehend an issue and identify the factors causing the issue. Reflection of the training, experience, and education required fitting work points of interest. Competence is an critical components in arrange to attain person and company performance. In case the representative features a great competence the he will work well in completing the work so that competence be one of the variables that influence the performance of a individual with such performance to be accomplished by a individual or company will be accomplished (Waris, 2015).
Following the Wibowo’s (2010) theory stating that competency is an ability based on knowledge and skills supported by working attitude to do a job. It follows the study result, where knowledge and skill dimensions had a strong and significant correlation with employee performance. Supported by responsible and tenacious attitudes of the employees, duties can be completed according to the predetermined target. In this case, PT JCI Padang Unit reviews competency as the fundamental matter to be possessed by employees in taking actions to implement responsibilities. Real efforts are delivered by the management to improve employee performance by improving competencies. The efforts include engaging employees in workshops, seminars, or training following the needs proposed by each Head of Department.
5. Conclusion
The conclusions based on study objectives and results are as follows:
a. The work motivation variable had a positive and highly significant effect on employee performance. Indicator with the greatest effect was growth needs. It is because the company appreciates employee achievements by administering rewards. PT JCI Padang Unit provides career opportunities for each employee according to their respective level. The company also bridges employees to work
Available online at HABITAT website: http://www.habitat.ub.ac.id maximally through various adequate
programs and facilities.
b. The competency variable had a positive and highly significant effect on employee performance. Indicator with the greatest effect was knowledge. Respondents suggested that employees comprehend the appointed job following the company’s regulation supported by written job descriptions. During the recruitment process, employees were selected based on the education level, ability, major, and position requirements. Before becoming permanent employees, a mandatory probation period for three to six months was applied for new employees. The company also assists employees to understand their job application following the job description through training, workshops, and seminars. Besides mastering the job description, employees are expected to be creative in delivering ideas not to be diverted from the organizational goal.
c. From the R-Squared (R2) finding, it was discovered that work motivation and competency variables affected employee performance at PT JCI Padang Unit by 68.6%. Therefore, it is expected that future researchers can develop a wider study subject or test other variables with a 31.4%
effect from this study.
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