By
Irsyad Ikhsan Arrahman 13112071
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION
FACULTY OF BUSINESS ADMINISTRATION & HUMANITIES
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
August 2016
Revision after the Thesis Defense on 28 July 2016
STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Irsyad Ikhsan Arrahman
____________________________________________
Student Date
Approved by:
Nila K. Hidayat, S.E., MM
____________________________________________
Thesis Advisor Date
Dr.rer.net. Linus Pasasa
____________________________________________
Thesis Co-Advisor Date
Eric Jos Nasution, MBA, MA, PHD
____________________________________________
Dean Date
ABSTRACT
THE EMERGENCE OF SERVICE EXCELLENCE TOWARDS EMPLOYEES’
JOB PERFORMANCE: A CASE STUDY OF PDAM TKR
By
Irsyad Ikhsan Arrahman Nila K. Hidayat, S.E., MM, Advisor Dr.rer.net. Linus Pasasa, Co-Advisor
SWISS GERMAN UNIVERSITY
Public service company is very crucial in every country. Public service is a service which is provided by the government to people within its jurisdiction, either directly through the public sector or by financing provisions of services. Basically, public service company is a company which working under the government authority and the main objective is to help the citizen by all means. The service quality that public service company provided is very important, because it reflects the quality of the government.
PDAM TKR is one of the public service company which existed to help people by providing and distributing clean water. People want to receive the best service experience provided by the company. Therefore, it is important to know about the service excellence and implement it into the system of customer service in order to improve the service quality delivered to the customers. The purpose of this thesis is to find out about the effect of service excellence implementation to the working process, and either if it is can or cannot improve the employees’ job performance. There are six indicators to measure service excellence, which are: ability, attitude, appearance, action, attention, and accountability. Hence, after this research is conducted, there is a correlation and influence between service excellence and employees’ job performance.
Keywords: Service Excellence, Employees’ Job Performance, attitude, ability,
© Copyright 2016 by Irsyad Ikhsan Arrahman
All rights reserved
DEDICATION
I dedicate this thesis to my lovely parents, family and friends for their unstoppable support, love, courage and patience.
ACKNOWLEDGEMENTS
In this very page, I would like to extend my appreciation to several people who have greatly take a role in this research project so it could be finished on time.
First, I would like to praise Allah SWT for His blessing, health and also giving me the opportunity to complete this thesis work.
For my parents (Drs. Didi Kurniadinata MA. & Anie Sufianie) and brother (dr. Azmi Ikhsan Azhary) who always give me unaccountable love, strength, support, courage, financial support, and patient. I really love you guys so much!
Special gratitude to my thesis advisor, Mrs. Nila K. Hidayat, for her guidance, support, patient, courage, and immense knowledge. She spends time, gave ideas and encouragement, which helped me a lot in conducting this study from the beginning until the completion of this thesis.
I wish to thank my co-advisor, Dr.rer.net. Linus Pasasa who gave me many intuitive knowledge, valuable guidance and suggestions. Thank you for many insightful discussions especially in research methodology.
I would like to show my reverence and deepest gratitude to Perusahaan Daerah Air Minum Tirta Kerta Raharja (PDAM TKR) and all employee especially Mr. Sani Tora Wicaksono as the head of Human Resources, who allow me to conduct my research in the PDAM TKR.
I would also like to express many thanks to all my friends in Swiss German University, especially all my IB friends, Ajie, Amir, Arya, Jo, Atria, Putri, Gerry, Arief, Laksmi, Kaesar, Joseph, Leonard, Michelle, Zhafran, Akbar, Naka and Revino, thank you for this amazing 4 years, it was such a unforgettable experience to meeting you all.
I wish to thank to my friends who always spent most of their time during thesis work together with me; Zafran, Revino, Ajie, Michelle and Naka for always support each
I thank you for the Böhmers and Berliner: Ajie, Revino and Zhafran who lived together in Germany and support me during the stay and internship in Germany.
I am very grateful to have such a wonderful and supportive girlfriend, Vivian Sutiono, for always support and cheer me up.
I want to thank my fellow students who advised by Mrs. Nila which are Junio Antonius and Atria Sita Devi for helping and supporting each other.
Thank you for all International Business lecturers from 1st semester until 8th semester who shared knowledge and experiences, supportive, and kind. For all SGU staffs who directly and indirectly helped me during my study in SGU.
I wish to thank you to my Fairy community friends, which always supporting me, cheering me up in any circumstances, and always accompany me in any virtual and reality journey.
Hence, I thank to all parties who support me in the completion of this thesis.
TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENT………..8
LIST OF FIGURES ... 11
LIST OF TABLES ... 12
CHAPTER I - INTRODUCTION ... 13
1.1. Background ... 13
1.2. Research Problems ... 23
1.3. Research Questions ... 23
1.4. Research Objectives ... 23
1.5. Significance of Study ... 23
1.6. Thesis Structure ... 24
CHAPTER II – LITERATURE REVIEW ... 26
2.1. Service and Service Excellence ... 26
2.1.1. Service ... 26
2.1.2. Characteristics of Service ... 27
2.1.3. Service Excellence ... 29
2.1.4. The Importance of Service Excellence ... 33
2.2. Employee Job Performance ... 34
2.3. Previous Study ... 37
2.4. Research Model ... 46
2.5. Hypothesis ... 47
CHAPTER III – RESEARCH METHODOLOGY ... 48
3.1. Type of Study ... 48
3.2. Type of Data ... 48
3.2.1. Primary Data ... 48
3.2.2. Secondary Data ... 49
3.3. Data Collection Method ... 49
3.3.1. Quantitative ... 49
3.3.2. Qualitative ... 50
3.4. Population and Sampling Method ... 50
3.5. Unit Observation ... 50
3.6. Sample Size ... 52
3.7. Operationalization Variable ... 52
3.8. Data Analysis ... 57
3.8.1. Correlation Analysis ... 57
3.8.2. Multiple Regression Model ... 58
3.8.3. Hypothesis Testing ... 60
3.9. Pre-Testing ... 61
3.9.1. Validity Test ... 61
3.9.2. Reliability Test ... 62
CHAPTER IV – RESULT AND ANALYSIS ... 63
4.1. Brief Company Profile ... 63
4.2. Respondent Characteristics ... 64
4.2.1. Respondents’ Age ... 64
4.2.2. Respondents’ Age ... 65
4.2.3. Respondents’ Tenure ... 66
4.2.4. Respondents’ Educational Background ... 67
4.3. Pre-Testing: Validity and Reliability Test Result ... 67
4.3.1. Validity Test Result ... 68
4.3.1.1 Validity Test Result of Service Excellence ... 68
4.3.1.2 Validity Test Result of Employee Job Performance ... 72
4.3.2. Reliability Test Result ... 72
4.4. Quantitative Collection Method Result ... 74
4.4.1. Classical Assumption Test ... 74
4.4.1.1. Normality Test ... 74
4.4.1.1. Multicollinearity Test ... 75
4.4.1.3. Heteroscedasticity Test ... 76
4.4.1.4. Durbin-Watson (Autocorrelation) Test ... 77
4.4.3. Multiple Regression ... 78
4.5. Qualitative Data Analysis ... 84
4.5.1. Service Excellence ... 85
4.5.2. Employee Job Performance ... 87
CHAPTER V – CONCLUSIONS AND RECOMMENDATIONS ... 88
5.1. Conclusions ... 88
5.2. Recommendations ... 90
GLOSSARY ... 93
REFERENCES ... 95
APPENDIX 1: QUESTIONNAIRE IN INDONESIAN ... 100
APPENDIX 2: QUESTIONNAIRE IN ENGLISH ... 104
APPENDIX 3: IN-DEPTH INTERVIEW QUESTIONS ... 108
APPENDIX 4: PRE-TEST COLLECTION DATA ... 109
APPENDIX 5: POST-TEST COLLECTION DATA ... 112
CURRICULUM VITAE ... 115
