Available online at HABITAT website: http://www.habitat.ub.ac.id
Analysis The Effect of Work Motivation And Competence on Employee Performance (Study on Employee’s PT JCI Padang, West Sumatera)
Yusti Mauriska Choirunnisa1*, Djoko Koestiono2
1Postgraduate of Agribusiness, Faculty of Agriculture, Brawijaya University, Veteran Street (65145), Malang, Indonesia
2Department Socio-economics, Faculty of Agriculture, Brawijaya University, Veteran Street, Malang, 65146, Indonesia
Received: 27 May 2022; Revised: 3 June 2022; Accepted: 17 June 2022
ABSTRACT
This research was conducted at PT Japfa Comfeed Indonesia Unit Padang, which is an animal feed processing company the biggest and leading in the country. The study aims to describe and analyze the effect of work motivation and competence on employee performance at PT JCI Padang.The approach to this research uses probability sampling with simple random sampling technique. The sample used in this study was staff at the junior management level which numbered 47 people. This research method uses SEM-PLS (Structural Equation Model-Partial Least Square) to see how much influence exogenous variables have on endogenous variables using WarpPLS 6.0 software. The results of this study indicate that: (1) Work motivation has a positive and highly significant effect on employee performance of 0.556, (2) Competence has a positive and highly significant effect on employee performance of 0.333. The lowest indicator value on work motivation and competence is the need for existence and attitude.
Therefore the company is expected to review the salary issues received by employees and the company should provide training about problem solving solutions.
Keywords: work; motivation; competence; employee; performance How to cite :
Choirunnisa, Y. M., & Koestiono, D. (2022). Analysis The Effect Of Work Motivation And Competence On Employee Performance ( Study On Employee ’ s PT JCI Padang , West Sumatera ).HABITAT, 33(2), 142–152. https://doi.org/10.21776/ub.habitat.2022.033.2.15
1. Introduction
During this current globalization era, the business realm competition becomes stricter.
Companies are expected to optimize resources to achieve the organizational goal, one of which is human resources. According to Hasibuan (2009), humans have a vital role that affects a product’s quantity and quality. The performance of quality employees positively contributes to organizational productivity since they can complete their tasks well with knowledge to help the company strive and develop. Good employee performance is obtained by appropriate motivation since it encourages employees to maximize their work. Motivation may be an important develop and an critical working environment component. Thus, Considerable investigate has been given to work environment
motivational perspectives and to motivation as a performance enhancer (Cerasoli et al., 2014)
However, work motivation is insufficient without the support of employee competency.
Employee abilities consisting of knowledge and skills combined with attitudes in doing work responsibilities are called competency.
Employees with a high competency level are valuable assets for the company. If an employee has no good competencies, it will trigger issues for the company. The company must present employees with expertise in each field in handling this issue.
PT JCI Padang Unit is one of Indonesia’s leading animal feed companies. The Human Resources (HR) asset in this company is responsible for controlling the animal feed production process, marketing process, financial process, and other processes. Therefore, these things highly depend on the work outcomes of the employees. Based on an online interview with the Head of the Human Resource Department
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*Correspondence Author.
E-mail: yustimch@gmail.com
Available online at HABITAT website: http://www.habitat.ub.ac.id (HRD) of the company, an issue was discovered
on employee competency. A gap remains present between employee competencies and the competencies expected by the company. Not all employees have work outcomes as expected by the company. The company’s competency issue is the assessment of employees who do not meet the criteria required by the company. The indication is the animal feed reproduction process. It is caused by the unachieved target in the marketing department, causing animal feed products to exceed the inventory storage time in the warehouse, mistakes in the quality control process, errors in measuring animal feed nutrition, and others.
Based on previous research, employee performance is influenced by many factors such as organizational culture, work motivation, job satisfaction, work commitment, and work environment (Aulia et al., 2017; Sunarsih, 2017;
Sujiati et al., 2017; Ayu Yuliantini et al., 2017;
Mubarok & Putra, 2018; Harahap & Silvianita, 2016; Martini et al., 2018; Suhasto &
Lestariningsih, 2018). However, this study only takes two exogenous variables because work motivation and competence are variables that have great potential in overcoming company problems. The level of employee performance depends not as it were on their capabilities but moreover on the level of motivation from within (Burney et al., 2007). Therefore, it is necessary to review whether the work motivation and competence of employees is good or not optimal.
The equation with previous research is testing employee performance through the influence of work motivation and employee competence.
While the difference with previous research is in the location, namely at PT JCI Unit Padang which focuses on processing animal feed.
Research related to employee performance has also not been carried out at this location. The population of employees at this company is also fairly large. The analytical tool used in this study is SEM–PLS using WarpPLS software to determine the significant effect of exogenous variables on endogenous variables.
Noe et al. (2012) asserted that training allows employees to develop special skills to help handle their current or future job. However, training held by PT JCI Padang Unit in 2019 was general and did not focus on employee needs in each department. Hence, based on the following background, the researcher was intrigued to conduct “Analysis of the Effect of Work
Motivation and Competency on Employee Performance (A Study on Employees of PT JCI Padang Unit, West Sumatera)” The study aimed to analyze the extent of work motivation and competency’s effect on employee performance.
2. Theoretical Underpinning
In a competition, every company has a target to be highly competitive. Companies usually focus on the operational part without thinking about human resources. Whereas the company's human resources are a tool to increase the effectiveness, efficiency, and productivity of the company. Research on the relationship between work motivation and competence on employee performance has been conducted several times in Indonesia. Based on the exposure of several previous studies, it was stated that work motivation and competence had a significant positive effect on employee performance (Aulia et al., 2017; Sunarsih, 2017;
Sujiati et al., 2017; Ayu Yuliantini et al., 2017, Mubarok and Putra, 2018; Martini et al., 2018;
Suhasto and Lestariningsih, 2018). Motivation impacts performance, as appeared by the relationship demonstrate of motivation with performance (Kreitner, Kinicki, 2001). Laborers have the capacity, work information, mien and nature, feelings, dispositions, convictions and values at work. Workers will be more propelled in the event that they accept that their performance will be known and esteemed (Adam
& Kamase, 2019). And competence is anticipated to progress performance and comes about of work, whereas competencies are required in arrange to have capabilities that are in understanding with wants of the organization so as to supply the leading performance (Adam &
Kamase, 2019)
PT JCI is a company with a large scale of business in producing animal feed in West Sumatra and has large human resources as well.
Good resource management is needed because it is a determinant of production factors to achieve company goals (Siagian, 2014). The results of the work of employees at PT JCI are different, the competence of some employees does not match the company's expectations. This condition is an obstacle to the company's performance. Based on this background, this study seeks to: 1) Describe work motivation and competence on employee performance at PT JCI Unit Padang, 2) Analyze the effect of work motivation and competence on employee performance at PT JCI Unit Padang.
Available online at HABITAT website: http://www.habitat.ub.ac.id 3. Research Method
The study utilized a quantitative approach.
It follows the study’s objective to analyze the effect of work motivation and competency on employee performance at PT JCI Padang Unit.
The study was conducted on the Animal Feed Division of PT JCI at Industrial Estate Padang Kav. NS. 10, Nagari Kasang, Batang Anai, Padang Pariaman, West Sumatera. The study was performed from January-February 2020. The location was purposive since PT JCI is a qualified animal feed processing company using corn as the raw material and has been leading in Indonesia since 1971 with numerous human resources at the junior management level.
The study employed probability sampling.
The technique applied was simple random sampling, where samples were collected randomly without considering the level in the population. Based on this description, since the assessment of employee performance of PT JCI Padang Unit was level-based, the study used samples from the staff of the sales, procurement, quality control, plant, HRD, finance &
accounting, and IT departments on the junior management level, amounting to 53 employees as the population. The study used a 5% allowance for inaccuracy, leading to a 95% reliability, and therefore, the minimum amount obtained is:
n = n = n =
n = 46,79≈ 47 respondents. = 46,79 ≈ 47 respondents
Based on this result, the samples from employees at the junior management level amounted to 47. Several technical data analyses carried out in this study are as follows:
3.1. Validity and Reliability Tests
Several ways to test the questionnaire reliability with WarpPLS 6.0 according to Solimun et al. (2017) are as follows:
a. Composite reliability (ρc)
The questionnaire has good reliability when the composite reliability value is 0.7, although it is not an absolute standard.
b. Alpha Cronbach
The coefficient of Cronbach’s Alpha ranges from 0 until 1. Reliability is very high when r11 > 0.9 and unacceptable reliability r11 <
0.4 (Gliem and Gliem in Solimun et al., 2017).
However, according to Malhotra (a criterion that is often applied), if the value of Alpha r11 > 0.6, then the questionnaire can be declared reliable.
3.2. Descriptive Statistical Analysis
The analysis aimed to answer the first study’s objective. The quantitative data analysis was performed by a frequency distribution table.
The frequency distribution functions to discover the score distribution of respondent answers and calculate the most frequently occurring value (mode).
3.3. Inferential Statistical Analysis
The study data were analyzed using Partial Least Square (PLS). The following steps were taken from Solimun’s (2016) book in Solimun et al. (2017) concerning the structural equation modeling with WarpPLS 6.0:
a. Design an inner model b. Design an outer model c. Create a path diagram
d. Transform the path diagram into an equation
1) Inner model equation (structural model) 2) Outer model equation (measurement
model)
e. Parameter estimation f. Goodness of Fit 1) Outer model
a) Convergent validity on each indicator b) Discrimination validity on each indicator 2) Inner Model
Before interpreting the hypothesis, one should review the value of R-Squared, Q- Squared, and have a good Goodness of fit by reviewing the index and measure of goodness between latent variables. If there is more than one Model Fit and Quality Indices indicators, the model can be used.
g. Conduct hypothesis testing
The hypothesis testing rule is obtained if the p-value is 0.10 (alpha 10%), then it is said to be weakly significant. If the p-value is 0.05 (alpha 5%), and if the p-value is 0.01 (alpha 1%), it is said to be highly significant.
Available online at HABITAT website: http://www.habitat.ub.ac.id 4. Results and Discussion
4.1. Measurement Model Evaluation (Outer Model)
The measurement model evaluation test (outer model) aimed to discover the validity and reliability of developed constructs or indicators making up the latent variable. The following section describes this study’s measurement model evaluation (outer model).
a. Convergent Validity Test
The convergent validity evaluation can be carried out by checking the loading factor and AVE (Average Variance Extracted) values. The loading factor value standard following Hair et al. (2014) in measuring the construct is 0.7 or over, with an AVE value of ≥ 0.50 (Hair et al., 2014). The loading factor and AVE values are presented in table 1.
Table 1. Convergent Validity Evaluation
Variable/Indicator Loading Value AVE
Value Note
Standard ≥ 0.70 ≥ 0.50
X2 Competency (X2)
Fulfilled
X2.1 Knowledge 0.926
0.846
X2.2 Skill 0.923
X2.3 Attitude 0.910
Y Employee Performance (Y1)
Y1.1 Accuracy in completing work 0.784
0.604 Fulfilled
Y1.2 Initiative on work 0.774
Y1.3 Mental agility 0.774
Based on the representation of loading factor and AVE values, which met each standard value, all indicators measuring the competency (X2) and employee performance (Y1) variables met the convergent validity requirement.
b. Discriminant Validity Test
Discriminant validity is a test based on the cross-loading and Square Root of Average Variance Extracted values. Discriminant validity
has a guideline that there should be a high correlation on the same construct's measurement.
The parameter employed compares the root of the AVE of a construct with a higher value than the correlation between such variables by checking the cross-loading value (Sholihin and Ratmono, 2013). The following table presents the cross- loading and Square Root of AVE values.
Table 2. Cross-loading Values
Indicator KOM (X2) KNJ (Y1) Note
X2.1 (0.926) -0.090 Fulfilled
X2.2 (0.923) 0.117 Fulfilled
X2.3 (0.910) -0.027 Fulfilled
Y1.1 0.321 (0.784) Fulfilled
Y1.2 -0.048 (0.774) Fulfilled
Y1.3 -0.278 (0.774) Fulfilled
Table 3. Square Root of AVE Values Variable KOM
(X2)
KNJ
(Y1) Note KOM
(X2)
(0.920) 0.709 Fulfilled KNJ (Y1) 0.709 (0.777) Fulfilled
Based on table 2 and table 3, it was discovered that cross-loading values of each
indicator measuring constructs are higher than each construct, and therefore, declared valid.
Also, the Square Root of AVE values obtained from each construct are higher than the correlation values in the same column among constructs. Hence, both evaluations indicate that such indicators are valid to measure the competency (X2) and employee performance (Y1) variables.
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0.379
0.395 0.399
c. Reliability Test
Reliability is a measurement demonstrating the questionnaire’s ability to measure a variable consistently. Based on Solimun et al. (2017), a questionnaire is good when the composite reliability value ρc ≥ 0.7 (rule of thumb).
Meanwhile, the questionnaire’s reliability is also observed from the Cronbach’s alpha value. A questionnaire is reliable when α ≥ 0.60. The composite reliability and Cronbach’s Alpha values are presented in table 4.
Table 4.Composite Reliability and Cronbach’s Alpha Values
Value Standard
KOM (X2)
KNJ (Y1) Composite
Reliability ≥ 0.70 0.943 0.821 Cronbach’s
Alpha
≥ 0.60 0.909 0.672
Note Reliable Reliable Reliable Based on table 4, it was discovered that the composite reliability value of both variables was
≥ 0.07, indicating that indicators measuring competency (X2) and employee performance (Y1) variables are reliable. Meanwhile, theCronbach’s Alpha value of the competency (X2) was 0.909 and 0.672 for employee performance (Y1) with a value of ≥ 0.60. Thus, indicators measuring both variables are reliable.
d. Formative Construct Evaluation
Feasibility evaluation in the formative construct uses reliability indicators through the weight with a p significance of less than 0.05, according to Hair et al. (2014) and collinearity through the VIF (Variance Inflation Factor) value of less than 5 (Kock, 2014). The formative construct measurement is declared feasible if both requirements are met. The following table presents the weight and VIF values.
Table 5. Weight Indicator Values MOT
(X1)
P-
value VIF
Value Standard < 0.05 < 5
X1.1 0.379 0.002 1.634
X1.2 0.395 0.001 1.870
X1.3 0.399 0.001 1.935
Based on table 5, it was discovered that all indicators of the work motivation variable (X1) had a p-value < 0.05. Thus, the three indicators meet the reliability indicator criteria. Moreover,
the VIF value on each indicator of X1showed a value < 5, and hence, no multicollinearity was present among indicators measuring work motivation (X1). This output concluded that the three indicators of the work motivation variable (X1) are reliable and have met the validity requirement for formative constructs.
4.2. Structural Model Evaluation (Inner Model)
The subsequent step after evaluating the measurement model (outer model) is evaluating the structural model (inner model) to examine the model predicting ability and relationships between constructs. The structural model evaluation, following Hair et al. (2014), is started by observing the R-Squared (R2) level and predictive relevance value of Q-Squared (Q2).
Table 6 presents R-Squared and Q-Squared values.
Table 6. R-Squared, Q-Squared Values MOT
(X1)
KOM (X2)
KNJ (Y)
R-Squared 0.686
Q-Squared 0.696
R-Squared (R2) shows that the similarity of the employee performance variable could be explained by work motivation and competency variables by 68.6%, while the remaining 31.4%
were contributed by other variables excluded from this model. The Q-Squared (Q2) result demonstrated that Q-Squared (Q2) has a value higher than zero, i.e., 0.696. Therefore, it concluded that the employee performance model has good predicting power. The table 7 concluded that the overall study model is feasible and has a good fit.
Figure 1. Final Path Diagram of the Study
WORK MOTIVATION
(X1) X1.2
X1.1
X1.3
COMPETENCY (X2)
X2.3
X2.2
X2.1
EMPLOYEE PERFORMANCE
(Y1)
Y1.3
Y1.2
Y1.1
0.926 0.923 0.910
β1= 0.56 p<.01
β2= 0.33
p<.01 R2= 0.69
0.784
0.774 0.774
Available online at HABITAT website: http://www.habitat.ub.ac.id The hypothesis testing in this study was
carried out by scrutinizing the path coefficient values and p-value. The p-value is declared significant if < 0.05. The hypothesis testing result is presented in table 7 through the path coefficient values and p-value (significance). The path coefficient values aim to predict relationship directions, both positive and negative, from exogenous variables on endogenous variables.
Table 7 presents the hypothesis testing results of the study.
Table 7. Hypothesis Testing Results
Hypothesis
Path Coeffici
ent
P-
value Note H
1
Work Motivation
Employee Performance
0.556 <
0.001
Accept ed H
2
Competency Employee Performance
0.333 0.006 Accept ed
4.3. Effect of Work Motivation on Employee Performance
The study results from table 7 suggest that all paths in the constructs were positive and significant. In the table 7, the first hypothesis, i.e., the relationship between work motivation and employee performance, had a path coefficient value of 0.556 and a p-value of <
0.001. Based on the hypothesis testing guideline asserted by Solimun et al. (2017), if the p-value≤ 0.01 (alpha 1%), it is declared highly significant.
This result indicates that MOT (X1) or working motivation had a highly significant and positive effect on KNJ (Y1) or employee performance by 0.556. Therefore, the first hypothesis (H1) was accepted. It illustrates that the higher the work motivation, the better the performance generated.
Thus, employee performance of PT JCI Padang Unit depends on the work motivation level possessed by employees.
It follows studies by Aulia et al. (2017), Sunarsih (2017), Sujiati et al. (2017), Ayu Yuliantini et al. (2017), Mubarok and Putra (2018), and Suhasto and Lestariningsih (2018), revealing that work motivation positively and significantly affected employee performance. It is supported by Busro (2018), stating that motivation is an activity sequence encouraging
others and oneself to achieve the target.
Motivation is crucial for employees since it affects organizational productivity. This statement is also supported by Sutrisno (2016), where motivation accuracy will boost employees to do their job maximally by the presumption that their interest will be maintained if the organizational goal is achieved. Motivation is an internal drive or an external inducement to act in a few specific way, regularly a way that will lead to rewards. Work motivation is one of the procedures of directors to upgrade successful work performance among employees in organizations (Taghipour & Dejban, 2013).
The work motivation variable in this study utilized the ERG motivation theory. This theory has a similar concept to the Maslow motivation theory. However, it is minimized into three need levels. This work motivation variable was manifested through three indicators, i.e., existence, relatedness, and growth. The difference from the Maslow theory is that the ERG theory does not require lower-level needs to be prioritized before moving forward to the next need level (Kadji, 2012). For instance, when one can work on their growth needs before satisfying their existence and relatedness needs, or when the three need categories can operate simultaneously.
The indicator weight values of the three indicators measuring the work motivation variable have been explained in table 5. From table 5, the indicator with the highest indicator weight value is growth needs by 0.399. Growth needs are defined as needs to improve individuals related to employee skills and abilities. Based on the field findings, respondents suggested that the company appreciated employee work outcomes by rewards. The reward is administered after evaluating their job by the leader, and the employee is rewarded following this evaluation.
Employee performance evaluation conducted by PT JCI Padang Unit includes employees following the company decision concerning quality standards, providing optimum work outcomes under the expected target, and completing the job promptly under the predetermined time standard. Incentives in the company usually lead to the sales and plant department as the reward if the sales target is achieved and the plant fulfills this target.
Incentives are also administered to employees from other departments according to their achievements. However, it has a lower frequency than the sales and plant departments. Rewards
Available online at HABITAT website: http://www.habitat.ub.ac.id from the company aim to improve employee
enthusiasm in developing the company’s sale value. PT JCI Padang Unit provides career opportunities (open career paths) for each employee according to their respective levels.
Employees with better performance than other employees will have better opportunities to be promoted. The promotion also applies to employees with continual improvement. The objectives of work enthusiasm are career and getting a better position. PT JCI Padang Unit bridges employees to work optimally with various training programs and adequate facilities.
The subsequent indicator is relatedness needs with an indicator weight value of 0.395.
Relatedness needs refer to fulfilling interpersonal needs, such as interacting satisfaction in social environments. Based on the interview, respondents mentioned that employees have a good relationship with leaders. It is observed when employees communicate to leaders comfortably and without nervousness. A good relationship between leaders and employees facilitates employees’ learning process, well- integrating tasks, creating a solid team, and thus, leading to improved job performance. Based on the field observation, leaders often make time to examine employee performance. The company leader also applies fairness to all employees, creating good relationships among employees.
This positive relationship will generate comfort in working. Oftentimes, employees have lunch and pray together. They also often go on vacation together, not to attend the organizational program but from their initiative. The work environment is excellent, observed from employees supporting each other.
The final indicator in work motivation is existence needs, with an indicator weight value of 0.379. Existence needs are the satisfaction of employee physique needs, i.e., meal, drink, work condition safety, and salary. Based on the field observation, it was discovered that PT JCI Padang Unit had provided salary following the respective job, from the position, risk, responsibility, and job description aspects. On average, the employees have income over the Provincial Minimum Wage (UMP) of West Sumatera, i.e., IDR 2,484,041.-. However, several respondents were eager to earn more since the salary could not make their ends meet.
These employees make 3 to 5 million/month.
Most employees with income within this range
are new, single employees working in the company (1-5 years).
The company also applies the regulations of the Indonesian Labor Department (DEPNAKER) in calculating the overtime pay.
The overtime pay is calculated using the presence record from date 11 of the previous month up to date 10 of the current month and is paid on date 25 each month. On the other side, comfort and convenience when doing work also affect employee work motivation. If the environment in the company is pleasant and comfortable, employee performance will be improved, and company goals will be achieved properly.
Employees' working comfort at PT JCI Padang Unit is met since the work atmosphere is conducive equipped with supporting facilities.
The working layout is supported by good ventilation and lighting, praying room availability, and sufficient safety. The allowances provided by the company include:
a. Mandatory allowances
Mandatory allowances from the company include compensation for healthcare costs for employees shall they experience work accidents or to facilitate living families from employees experiencing work-related deaths. The allowances also include family and medical leave, expensive allowances, family allowances, and religious holiday allowances (once a year).
b. Non-mandatory allowances
Non-mandatoryallowances consist of pay while not working, health care, job benefits, and transport allowances.
1) Time-off benefits take the form of providing time for employees to eat and rest. The company continues to pay employees who are absent from work when sick with a maximum limit of sick days per year, providing employees with national holidays, leave, and other reasons.
2) The health benefits provided by the company include all employees and their families registered under BPJS. The company facilitates medical claims for employees and their families by submitting receipts until Monday, to be paid on Thursday (the same week), holding regular general check-ups related to employee health, completing medical equipment (P3K), and others.
3) Position allowances are considered as substitute compensation where employees do not get overtime pay although they
Available online at HABITAT website: http://www.habitat.ub.ac.id work more than the stipulated working
hours. The senior management level at PT JCI Padang Unit has a different allowance than for those employees at the junior management level. The benefits acquired on each level in the company are varied.
4) Meal and transportation allowance is calculated using the presence record from date 11 of the previous month up to date 10 of the current month and is paid on date 25 each month.
The behaviors of employees had been very closely related to social behavior, where every employee has a sense of concern for the institution, but it still needs better cooperation among fellow colleagues to improve the cohesiveness and morale of the work. Dharma's research reports based on his results, motivation needs to be improved in terms of employee awareness, career development, and welfare so that employees keep excited, motivated, and can improve their performance in the future (Dharma, 2018). Application of expanded employee motivation such as physiological needs, security, sense of having a place (social), self-esteem, and selfactualization. The comes about of this think about bolster Adam & Kamase (2019), who found that work motivation had a noteworthy affect on performance. They give performance remittances, working conditions, and collaboration, openings to create, grants, sanctions, and reasonable and straightforward miens so that employees will be motivated and this will have an affect on moving forward employee performance.
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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