THE INFLUENCE OF TRAINING AND DEVELOPMENT AND PERFORMANCE APPRAISAL ON EMPLOYEE SATISFACTION
IN PT. XYZ
By
Anggrieta Melati Putri 11303103
BACHELOR’S DEGREE In
INTERNATIONAL BUSINESS ADMINISTRATION
FACULTY OF BUSINESS ADMINISTRATIONS AND HUMANITIES
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
August 2017
Revision after the Thesis Defense on July 26th 2017
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.
Anggrieta Melati Putri
Student Date
Approved by:
Dr. Dr. Dipl. –Ing., Rachman Sjarief, MM., MH.
Thesis Advisor Date
Dr. Nila Krisnawati Hidayat, SE., MM.
Dean Date
ABSTRACT
THE INFLUENCE OF TRAINING AND DEVELOPMENT AND PERFORMANCE APPRAISAL ON EMPLOYEE SATISFACTION IN PT. XYZ
By
Anggrieta Melati Putri
Dr. Dr. Dipl. –Ing. Rachman Sjarief, MM., MH., Advisor
SWISS GERMAN UNIVERSITY
The purpose of this research paper is to study the significance of Training and Development and Performance Appraisal towards Employee Satisfaction in PT.XYZ.
The company that is being analyzed is a banking company located in Indonesia. This study uses quantitative data from 70 employees of PT. XYZ. The data is collected through questionnaires and statistical analysis is done using SPSS and AMOS. SEM (Structural Equation Modeling) is used as the statistical method and analytical tool in determining the reliability and validity of the data. It is also used to determine the model fit and to estimate the relationships between the variables, which is seen through the structural model.
This research concludes that Training and Development has a high significance towards Employee Satisfaction, whereas Performance Appraisal has a low significance towards Employee Satisfaction. Performance Appraisal, however, has a high significance towards Training and Development.
Thus PT. XYZ is expected to consider the results of this research in order to increase the satisfaction of its employees.
Keywords: Employee Satisfaction, Performance Appraisal, Training and Development
© Copyright 2017 by Anggrieta Melati Putri
All rights reserved.
DEDICATION
I dedicate this thesis to my family, who has always been my number one supporter;
my friends, who have been with me since day one of this crazy journey; and to anyone else working on their thesis, may you find success in your research.
"Happiness can be found, even in the darkest of times, if only one remembers to turn on the light." – Albus Dumbledore
ACKNOWLEDGEMENTS
I would like to take this time to thank some people that, with their support and guidance, helped me to complete this thesis
First and foremost, I would like to thank my advisor, Dr. Dr. Dipl. –Ing. Rachman Sjarief, MM., MH., whom without his knowledge, guidance, and patience throughout the duration of this research, I would have never been able to finish this thesis. Thank you as well to James Hunt for his assistance and advise for this thesis.
To my parents, Sukanto and Nilam Larasati, whose endless support and unconditional love has helped me keep my head up high throughout all of this. Thank you to my father for driving me to the print shop at anytime I needed, even past midnight. Thank you to my mother for making me snacks to keep me energized. Thanks to my sister, Dinar Seruni Putri for lending me her laptop whenever I needed it. And I needed it a lot.
Thank you to my classmates and friends who would help me whenever I needed it.
Albeit during class or through late night Skype calls. You would help me when I was stuck and would make sure I was cheered up whenever I was down. You all made the last 4 years amazing. Let’s all finish this together.
Finally, thank you to all the respondents from PT. XYZ for giving the time in your busy schedules to fill in the questionnaires and contributing to this research. Without each and every one of you, this research would not be complete.
Starlight.
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
CHAPTER I - INTRODUCTION ... 13
1.1. BACKGROUND ... 13
1.1.1.HUMAN CAPITAL ... 13
1.1.2.HUMAN RESOURCE MANAGEMENT ... 14
1.1.3.HRMIN THE BANKING INDUSTRY ... 15
1.2.CURRENT STATUS AND CHALLENGES ... 17
1.3.RESEARCH OBJECTIVES ... 19
1.4.RESEARCH QUESTIONS ... 19
1.5.SCOPE AND LIMITATIONS ... 20
1.6.SIGNIFICANCE OF STUDIES ... 20
1.7.STRUCTURE OF CHAPTERS ... 20
CHAPTER II - LITERATURE REVIEW ... 21
2.0.HUMAN RESOURCE MANAGEMENT ... 21
2.1.EMPLOYEE SATISFACTION ... 22
2.1.1COMPENSATION ... 23
2.1.2REWARDS AND BENEFITS ... 24
2.1.3.STRESS LEVELS ... 25
2.1.4.WORKING CONDITIONS ... 25
2.2.TRAINING AND DEVELOPMENT ... 26
2.2.1.PLANNING AND COORDINATION ... 28
2.2.2.COACHING ... 28
2.2.3.MANAGERIAL CAPABILITY ... 29
2.2.4.TIME MANAGEMENT ... 29
2.3.PERFORMANCE APPRAISAL ... 30
2.3.1.APPRAISAL SYSTEM ... 32
2.5.STUDY DIFFERENCES ... 38
2.6.RESEARCH MODEL ... 39
2.7.HYPOTHESIS ... 40
CHAPTER III - RESEARCH METHOD ... 41
3.1.TYPE OF STUDY ... 41
3.2.TYPE OF DATA ... 41
3.3.TIME DIMENSION ... 42
3.4.RESEARCH FRAMEWORK ... 43
3.5.POPULATION AND SAMPLE ... 44
3.6.DATA COLLECTION METHOD ... 45
3.7.OPERATIONAL VARIABLES ... 45
3.8.DATA ANALYSIS ... 48
CHAPTER IV - RESULTS AND DISCUSSIONS ... 49
4.1.COMPANY PROFILE ... 49
4.2.RESPONDENT PROFILE ... 49
4.2.1.GENDER ... 50
4.2.2.AGE ... 51
4.2.3.LEVEL OF EDUCATION ... 52
4.2.4.DURATION OF WORK ... 53
4.3.PRE-TEST ... 53
4.3.1.RELIABILITY AND VALIDITY TEST ... 54
4.3.1.1RELIABILITY TEST ... 54
4.3.1.1.1RELIABILITY TEST OF EMPLOYEE SATISFACTION ... 54
4.3.1.1.2.RELIABILITY TEST OF TRAINING AND DEVELOPMENT ... 54
4.3.1.1.3.RELIABILITY TEST OF PERFORMANCE APPRAISAL ... 55
4.3.1.2.VALIDITY TEST ... 55
4.3.1.2.1.VALIDITY TEST OF EMPLOYEE SATISFACTION ... 56
4.3.1.2.2.VALIDITY TEST OF TRAINING AND DEVELOPMENT ... 56
4.3.1.2.3.VALIDITY TEST OF PERFORMANCE APPRAISAL ... 57
4.4.1.1.1.RELIABILITY TEST OF EMPLOYEE SATISFACTION ... 58
4.4.1.1.2.RELIABILITY TEST OF TRAINING AND DEVELOPMENT ... 58
4.4.1.1.3.RELIABILITY TEST OF PERFORMANCE APPRAISAL ... 59
4.4.1.2.VALIDITY TEST ... 59
4.4.1.2.1.VALIDITY TEST OF EMPLOYEE SATISFACTION ... 59
4.4.1.2.2.VALIDITY TEST OF TRAINING AND DEVELOPMENT ... 60
4.4.1.2.3.VALIDITY TEST OF PERFORMANCE APPRAISAL ... 60
4.5.DESCRIPTIVE STATISTICS ... 61
4.6.DATA ANALYSIS ... 62
4.6.1.SEMMODEL ... 62
4.6.2.MODIFICATION INDICES ... 63
4.6.3.GOODNESS OF FIT ... 64
4.6.4.SIGNIFICANCE LEVELS OF THE DATA ... 65
4.6.5.RESULTS OF THE SEMMODEL ... 67
4.6.5.1.PERFORMANCE APPRAISAL TO TRAINING AND DEVELOPMENT ... 67
4.6.5.2.PERFORMANCE APPRAISAL TO EMPLOYEE SATISFACTION ... 67
4.6.5.3.TRAINING AND DEVELOPMENT TO EMPLOYEE SATISFACTION ... 68
4.6.5.4.PERFORMANCE APPRAISAL TOWARDS INDICATORS ... 68
4.6.5.4.1.COMMUNICATION ... 68
4.6.5.4.2.FEEDBACK ... 68
4.6.5.4.3.MOTIVATION ... 69
4.6.5.4.4.APPRAISAL SYSTEM ... 69
4.6.5.5.TRAINING AND DEVELOPMENT TOWARDS INDICATORS ... 69
4.6.5.5.1.TIME MANAGEMENT ... 69
4.6.5.5.2.MANAGERIAL CAPABILITY ... 69
4.6.5.5.3.COACHING ... 70
4.6.5.5.4.PLANNING AND COORDINATION ... 70
4.6.5.6.EMPLOYEE SATISFACTION TOWARDS INDICATORS ... 71
4.6.5.6.1.COMPENSATION ... 71
4.6.5.6.2.REWARDS AND BENEFITS ... 71
4.6.6.3.HYPOTHESIS TESTING AND ANALYSIS #3 ... 75
CHAPTER V - CONCLUSION AND RECCOMENDATIONS ... 78
5.1.CONCLUSION ... 78
5.2.RECOMMENDATIONS ... 79
GLOSSARY ... 85
REFERENCES ... 88
APPENDICES ... 98
APPENDIXI–REGRESSIONWEIGHTTABLE ... 98
APPENDIXII–MODELFITSUMMARY ... 99
APPENDIXIII–SUMMARYOFBOOTSTRAPPING ... 101
APPENDIXIV–QUESTIONNAIRESAMPLE ... 102
APPENDIXV–RAWRESPONDENTDATA ... 105
CURRICULUM VITAE ... 109
