Funnisia Lamalewa, Elisabeth Lia Riani Kore and Chyntia Novita Kalalo Universitas Musamus, Merauke, Indonesia

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1 International Journal of Mechanical Engineering and Technology (IJMET) Volume 9, Issue 10, October 2018, pp , Article ID: IJMET_09_10_005 Available online at ISSN Print: and ISSN Online: IAEME Publication Scopus Indexed THE INFLUENCE OF PRACTICES OF HUMAN RESOURCES MANAGEMENT, COMPENSATION, WORK SATISFACTION AND MOTIVATION ON PERFORMANCE OF BANK EMPLOYEES IN MERAUKE CITY Funnisia Lamalewa, Elisabeth Lia Riani Kore and Chyntia Novita Kalalo Universitas Musamus, Merauke, Indonesia ABSTRACT This study aims to analyze and measure the direct influence of Human Resource Management Practices, Compensation, Job Satisfaction and Motivation on the Performance of Bank employees in Merauke City. The design of this study is explanatory or causal research that connects between Human Resource Management Practices, Compensation, Job Satisfaction and Motivation to Performance. Collecting data in this study from the phenomenon of bank employees in the city of Merauke. Samples are taken from the population based on predetermined characteristics, namely permanent employees, amounting to 101 people in 4 banks in the city of Merauke. Data were analyzed using a quantitative approach through path analysis to answer research problems and test hypotheses. The results showed that first, the Practice of Human Resource Management and Compensation had a positive and significant direct effect on employee job satisfaction. Both Human Resource Management and Compensation Management practices have a positive and significant direct effect on employee motivation. The three practices of Human Resource Management and Compensation directly and positively influence the performance of Bank employees in Merauke City. Keywords: management practices, human resources, compensation, job satisfaction, motivation, employee performance Cite this Article: Funnisia Lamalewa, Elisabeth Lia Riani Kore and Chyntia Novita Kalalo, The Influence of Practices of Human Resources Management, Compensation, Work Satisfaction and Motivation on Performance of Bank Employees in Merauke City, International Journal of Mechanical Engineering and Technology, 9(10), 2018, pp editor@iaeme.com

2 The Influence of Practices of Human Resources Management, Compensation, Work Satisfaction and Motivation on Performance of Bank Employees in Merauke City 1. INTRODUCTION Like an organization, one of the strategic functions that play an important role in banking is its human resources. Considering the role of bank employees that is quite dominant towards the level of bank operational risk, the quality and working environment of the bank must continue to be improved. The inability of bank management in managing human resources well will result in a dangerous level of operational risk. Investment in human resources cannot be measured in rupiah amounts, but its existence can be observed and felt in the form of performance achievement towards work standards. One of the requirements of professionalism for a bank financial institution is to have human resources who are professional and competent in their fields. Synchronization between the mission of the organization and its resources is the main capital for achieving the organization's vision. Professional human resources are one of the main pillars and sources of strength to realize quality work results in accordance with the objectives set in the organization. For that human resources are invaluable assets of existence, thus the development of human resources needs to continue to get attention. Related to the above statement. Gould (2003) argues that good human resource management practices are characterized by a desire to maintain membership, engage in work and adjust personal values with organizational goals and wisdom, feelings of involvement in the duties and obligations of the organization or company and a feeling of loyalty (loyal ) in a company or organization. Human resource management will influence positive work attitudes and create work efficiency so that high work discipline is created. Productivity and high performance will be more assured if the organization has the right way to maintain employee productivity by providing fair and sufficient compensation. Compensation is expected to be able to motivate so that employees can complete their work properly. With adequate compensation and increased motivation to be carried out successfully, then an employee will be motivated in carrying out the work that is charged to him and try to overcome the problems that occur. The working principle for employees in every organization is to build the ability to improve the quality of life in the right way. The success of each individual in building work quality is an asset of the organization in realizing the vision and mission and making the organization professional. Thus workers are moved to use creativity and innovation spontaneously in carrying out their duties. Job satisfaction is also an important role in the company. Satisfaction is an emotional state, where there is no meeting point between the value of remuneration from a company or organization and the level of reward that is desired by the employee. Another factor that determines employee productivity is work motivation. Work motivation is the driving force that motivates the spirit of one's work, which encourages a person to develop creativity and move all the abilities and energy they have to achieve maximum performance. Definition of Performance is a result or level of success (Mangkoedihardjo, 2010) and in this case achieved by a worker in the field of work according to certain criteria and evaluated by certain people (Filippo, in Ulfa, 2011). Employee performance in a company is very important because if the employee's performance is not good, then it is certain that the company will not be able to compete with other companies. With good employee performance, the company is expected to be able to compete with other companies. In this study, more focus on the conditions experienced by employees at PT. Bank BNI, Bank Papua, BRI Bank and Bank Danamon located in the city of Merauke, whether employees who have high job performance are given recognition and awards in the form of promotions, whether employees feel satisfied with the salary or wages given with the conditions of work / placement of employees at the same part or field of work for a long period of time, will it affect the job satisfaction and motivation of the employee at work, 65 editor@iaeme.com

3 Funnisia Lamalewa, Elisabeth Lia Riani Kore and Chyntia Novita Kalalo because employees are very vulnerable to experiencing saturation due to monotonous work undertaken. Employees who do not have high work motivation feel very depressed by the targets that must be achieved every month. When approaching the monthly target, employees feel very burdened by bank demands. Employees feel as if they cannot afford to achieve all the targets that have been set, the result of these conditions is the level of employee absenteeism. According to Dessler (1997) that the function of human resources in a company is empowered to be balanced with other resources. An indication of the statement that the employee will show symptoms of work deviation if management is not good. On the basis of each employee has the ability and working principles to build ability to improve performance, but this ability without being accompanied by job satisfaction and work motivation will not be achieved. The results of the research by Teseema & Soeters (2006) indicate that there is a direct relationship between the giving of promotion to performance. Maryanto (2004) in his research stated that rewards positively influence the work motivation of workers. Research conducted by Guritno & Waridin (2005) suggests that job satisfaction has a positive effect on worker performance. In addition, Honey research (in Umar, 2011) shows that there is a significant relationship between employee job satisfaction and performance, both for industrial companies and service companies. The effect of compensation on workers is very large. High work motivation, job satisfaction, performance, and also restlessness, loyalty, workers, much influenced by wages, Nitisemito (in Umar, 2011). This study aims to determine the effect of human resource management practices, compensation, job satisfaction and motivation on the performance of Bank employees in the city of Merauke. 2. METHODS This research is an explanatory research which intends to provide an explanation of the causality relationship between variables through testing hypotheses. The location of the research was conducted at Bank BNI, PAPUA Bank, BRI Bank and Bank Danamon in Merauke City. The research objects are employees of Bank BNI, PAPUA Bank, BRI Bank and Bank Danamon Merauke Branch. The population in this study amounted to 217 people with the technique of determining the sample based on the characteristics that have been determined, namely all permanent employees at Bank BNI, Bank Papua, Bank BRI and Bank Danamon Merauke Branch. So the sample in this study was 101 respondents. The type of data in this study is quantitative data. While the data source used in this study is primary data is data obtained from interviews and questionnaire results. In this study researchers used two variables, according to the problem being studied, namely the independent variable (independent) is a variable that affects the dependent variable. In this study the independent variables are: X1: Practices of Human Resource Management. X2: Compensation. X3: Job Satisfaction X4: Work Motivation. The dependent variable is the variable whose size is determined by the independent variable. In this study the dependent variable is employee performance. The analytical tool used is path analysis (path analysis), using the SPSS for Windows version 20.0 to facilitate analysis editor@iaeme.com

4 The Influence of Practices of Human Resources Management, Compensation, Work Satisfaction and Motivation on Performance of Bank Employees in Merauke City 3. RESULTS 3.1. Path analysis Based on the path coefficient value on the first path structure, the R Square value of the influence of human resource management practices, compensation and job satisfaction on motivation is or 41.2%, which shows the contribution of the variables of practice of human resource management, compensation and job satisfaction to motivation. This shows that there are still other factors that influence motivation by 58.8% which are not included in this research model. Based on the path coefficient value on the second lane structure, the R Square value of the influence of human resource management practices, compensation, job satisfaction and motivation on employee performance is or 59.9% which shows the variable contribution of human resource management, compensation, job satisfaction and motivation for employee performance. This shows that there are other factors that influence employee performance by 40.1% which are not included in this research model. 4. HYPOTHESIS TEST Based on the t test obtained the influence of human resource management practices (X1), compensation (X2) and job satisfaction (X3) on work motivation (X3) on Banks in Merauke City. The coefficient of influence of human resource management practices on work motivation is with a significant value of <0.05. This shows that direct human resource management practices have a positive and significant effect on work motivation at the Bank in Merauke City. The coefficient of influence of compensation on work motivation is with a significant value of <0.05. This shows that compensation directly has a positive and significant effect on work motivation at the Bank in Merauke City. The coefficient of influence of job satisfaction on motivation is with a significant value of <0.05. This shows that direct job satisfaction has a positive and significant effect on work motivation at bank banks in Merauke City. Based on the t test obtained the effect of human resource management practices (X1), compensation (X2) and job satisfaction (X3) on employee performance at the Bank in Merauke City. The coefficient of influence of human resource management practices on employee performance is with a significant value of <0.05. This shows that direct human resource management practices have a positive and significant effect on the performance of employees at Bank banks in Merauke City. The coefficient of effect of compensation on employee performance is with a significant value of <0.05. This shows that compensation directly has a positive and significant effect on employee performance at Bank banks in Merauke City. The coefficient of influence of job satisfaction on employee performance is with a significant value of <0.05. This shows that direct job satisfaction has a positive and significant effect on employee performance at Bank banks in Merauke City Based on the t test it is known that the variables of human resource management practices affect work motivation and work motivation affect employee performance. This shows that the variable practice of human resource management indirectly influences the performance of employees through work motivation at the Bank in Merauke City is accepted. Based on the t test it is known that the compensation variable influences work motivation and work motivation affects employee performance. This shows that the compensation variable indirectly influences the performance of employees through work motivation at the Bank in Merauke City is accepted editor@iaeme.com

5 Funnisia Lamalewa, Elisabeth Lia Riani Kore and Chyntia Novita Kalalo Based on the t test it is known that the variable job satisfaction affects work motivation and work motivation affects employee performance. This shows that the variable job satisfaction indirectly affects the performance of employees through work motivation at the Bank in Merauke City is accepted. 5. DISCUSSION Based on the results of the analysis, the results show that the variables of human resource management and compensation practices have a positive and significant effect on job satisfaction. Job satisfaction is a condition where employees' needs are met. Employees who are satisfied with compensation and work facilities obtained are indicators of appropriate human resource management practices. Workers basically need physical and non-physical fulfillment, physically we know that it is related to material or money paid, while nonmaterial fulfillment is in the form of positive interactions with the work environment, such as appreciation, trust and relationships between fellow employees or between employees and superiors. Human resource theory put forward by Hezberg et al in Luthans, (2002) that high attitudes and experiences from a person, determine the quality of work. The factors that are defined as the work context are hygiene factors, namely: supervision, interpersonal relationships, physical working conditions, salary, company policy, administration, benefits and work safety. If these factors decrease below what the worker sees to a certain point, it will lead to dissatisfaction. Conversely, if factors increase then job satisfaction will be achieved so that it grows as a motivator of performance achievement. This research is in line with the research conducted by Purnomo (2013) with the title Effect of Compensation, educational background, human resource management practices, clarity and motivation on work performance of Bank employees in Makassar where the results of this study indicate that by improving the quality of human resource management practices with how to improve education, training, technical guidance, job promotion and job evaluation so that management can improve employee performance as a banker and further improve performance-based compensation and proportion-based employees will surely feel satisfied in the work and performance improvements will be shown. Based on the results of the analysis, the results show that the variables of human resource management and compensation practices have a positive and significant effect on employee work motivation at the Bank in Merauke City. This shows that by increasing and improving the human resource management practices of bank employees will further increase employee motivation. This finding is in line with Filoppo's research (in Ulfa, 2011) that the practice of human resource management as a process of planning, organizing, directing and monitoring activities, procurement, development, compensation, integration, maintenance of human resources will provide high work motivation. Giving compensation to employees in the form of salary and rewards will provide encouragement to employees in carrying out their duties and responsibilities. Mendonca, (in Sajuyigbe, 2013) looks at rewards and compensation systems based on the theory of expectations, which shows that employees are more likely to be motivated to do work when they see a strong relationship between the performance and the rewards they receive. Guest (in Sajuyigbe, 2013) argues that rewards are one of the keys that motivate employees to do work as expected. This research is in line with the research conducted by Umar (2011) with the title Influence of Wages, Work Motivation, and Job Satisfaction on Workers' Performance in Manufacturing Industry in the City of Makassar where the results of this study indicate that the higher the wages received by workers, the higher the level work motivation of workers. Based on the results of the analysis, the results show that the variables of human resource management and compensation practices have a positive and significant effect on the 68 editor@iaeme.com

6 The Influence of Practices of Human Resources Management, Compensation, Work Satisfaction and Motivation on Performance of Bank Employees in Merauke City performance of employees at the Bank in Merauke City. This shows that the improvement in human resource management practices for employees will further improve its performance. This finding is in line with research to improve organizational dynamics through increasing employee productivity, according to Truss (2001) in need of human resource management in the form of promotion, because the promotion will affect the performance of the employee itself. In addition experience shows that compensation also affects performance. Inadequate compensation can reduce work performance, motivation, and employee job satisfaction or even cause potential employees to leave the company. In addition to salaries which are direct compensation, indirect compensation can also be given which is additional compensation provided based on company policy towards all employees as an effort to improve the welfare of employees for example, in the form of facilities, such as insurance, benefits, pensions and etc. From the description above it is known that the existence of good human resource management practices and providing compensation to employees causes employees to try to work well. The choice of compensation is based on whether the rewards are in accordance with the employee's judgment and whether extrinsic or intrinsic rewards have the expected value and can motivate someone to do something the organization hopes to do. This research is in line with the research conducted by Purwanggono, C.J. (2006), motivational factors (salary and social security, career expectations, the role of managers, employee competence, type of work, completeness of work, work environment and company policy) have a positive and significant effect on the performance of employees of PT Telkom Barat Barat Based on the results of data analysis showed that the variable job satisfaction has a positive and significant effect on the performance of employees at the Bank in Merauke City. If, the value of job satisfaction is raised, it will cause an increase in the performance of employees in carrying out their duties and responsibilities. This is because the job satisfaction of an employee will provide better work results. Robbins (2008) job satisfaction is a general attitude of an employee towards his job. Job satisfaction shows that there is a match between one's expectations that arise with the rewards provided by the work. Job-related feelings involve aspects such as wages or salaries received, career development opportunities, relationships with other employees, job placement, type of work, company organizational structure, quality of supervision. Based on the results of data analysis, it was shown that work motivation variables had a positive and significant effect on employee performance at the Bank in Merauke City. If, the motivation value is raised, it will cause an increase in employee performance in carrying out their duties and responsibilities. Motivation arises due to two (2) factors, namely internal factors are factors that arise from within a person while external factors are factors outside of a person. Therefore, increasing the value of motivation can be done by giving encouragement to each employee in carrying out their duties and responsibilities. This encouragement can be in the form of rewards for every nurse who has good performance or provides compensation in other forms in accordance with existing provisions. Increasing employee motivation is a very meaningful thing for every organization, both governmental organizations and organizations within the company. An employee who has high motivation in work will provide the best for an organization. This is what causes motivation to provide an important contribution to every organization. This research is in line with the research conducted by Sirajuddin (2008) examining the effect of personal characteristics, competencies, leadership attitudes, and communication on satisfaction, motivation and performance of BPR employees in South Sulawesi. The results of his research show that work motivation has a positive and significant effect on employee performance. Bachri (2007), found that motivation has a significant effect on employee 69 editor@iaeme.com

7 Funnisia Lamalewa, Elisabeth Lia Riani Kore and Chyntia Novita Kalalo performance, compensation does not significantly influence performance through motivation, career opportunities have a significant effect on job satisfaction, motivation and performance of employees of Commercial Banks in Sulawesi Selayan. This research is not in line with the research conducted by Dhermawan, et al. (2012) found that motivation and work environment had no significant effect on job satisfaction while competence and compensation had a significant effect. Motivation and competence have no significant effect on employee performance while the work environment, compensation and job satisfaction have a significant effect. 6. CONCLUSION Based on the results of the analysis, it can be seen that the practice of human resource management and compensation has a positive and significant effect on the job satisfaction of Bank employees in Merauke City. The practice of human resource management and compensation has a positive and significant effect on the work motivation of Bank employees in Merauke City. The practice of human resource management and compensation has a positive and significant effect on employee performance. It is suggested to the Bank's leaders in Merauke City to be able to improve the practice of human resource management in terms of promotion to employees who show high work performance and improve the compensation system by giving salaries that are in accordance with the workload of employees and providing bonuses in relation to the completion of work. Increased job satisfaction can be done by improving the conditions of employee workspace so that employees can feel comfortable in doing their work. Increased work motivation can be done by giving praise or recognition of the work shown by employees. REFERENCES [1] Bachri, A.A. (2007). Pelaksanaan Manajemen Sumber Daya Manusia dan Pengaruhnya Terhadap Kinerja Pegawai Perbankan Di Sulawesi Selatan. Disertasi Tidak Dipublikasikan. Unhas, Makassar. [2] Dessler, G. (1997). Manajemern Sumber Daya Manusia. Edisi ke-7, Alih bahasa, Jilid 1 & Jilid 2, Prenhalindo, Jakarta [3] Dhermawan, A.A.N.B, Sudibya, Adnyana, I.G dan Utama, I.W.M. (2012). Pengaruh Motivasi, Lingkungan Kerja, Kompetensi, dan Kompensasi terhadap Kepuasan Kerja dan Kinerja Pegawai di Lingkungan Kantor Dinas Pekerjaan Umum Provinsi Bali. Jurnal Manajemen, Strategi Bisnis, dan Kewirausahaan Vol. 6, 173 No. 2 Agustus 2012 [4] Fitriani; P Betaubun; EA Pure; D Tikson; EE Maturbongs; TWA Cahyanti; RF Waas Relationship of Employee Ethnic Background in Validation of Situational Leadership Theory. Indian Journal of Public Health Research & Development 9 (4): [5] Gould, W.J. (2003). The importance HR Practices and workplace trust in achieving superior performance: study of Public-sector organizations, international Journal of Human Recource Management, 14 (1) [6] Guritno, B. & Waridin. (2005). Pengaruh Persepsi Karyawan Mengenai Perilaku Kepemimpinan, Kepuasan Kerja, dan Motivasi terhadap Kinerja. JRBI Vol.1,pp [7] Mangkoedihardjo, S. (2010). Individual or communal sanitation services?: Decision based on wastewater storage capacity. Advances in Natural and Applied Sciences, 4(3): [8] Maryanto, S. (2004). Pengaruh Motivasi Kerja dan Imbalan Terhadap Kepuasan Kerja Karyawan. Semarang. Tesis. PPS Universitas Dipenogoro editor@iaeme.com

8 The Influence of Practices of Human Resources Management, Compensation, Work Satisfaction and Motivation on Performance of Bank Employees in Merauke City [9] Purwanggono, C.J. (2006). Faktor-faktor berpengaruh terhadap kinerja karyawan PT.Telkom Jawab Barat. Disertasi tidak dipublikasikan, Unpad, Bandung [10] Purnomo, H.S. (2013) Pengaruh Kompensasi, latar belakang pendidikan, praktik manajemen sumberdaya manusia, kepusan dan motivasi terhadap prestasi kerja karyawan Bank di Makassar. Disertasi Tidak Dipublikasikan. Unhas, Makassar. [11] Robbins, S.P. (2008). Perilaku Organisasi, Konsep-Kontroversi-Aplikasi, Edisi Bahasa Indonesia, Jakarta, PT. Prenhalindo. [12] Sajuyigbe, O.B. (2013). Impact Of Reward On Employees Performance In A Selected Manufacturing Companies In Ibadan, Oyo State Nigeria. Journal of Arts and Commerce Vol. 2 No.2 [13] Sirajuddin. (2008). Pengaruh Karakteristik pribadi, Kompetensi, Sikap Kepemimpinan, dan komunikasi terhadap kepuasan, motivasi dan kinerja karyawan BPR di Sulawesi selatan. Disertasi Tidak Dipublikasikan. Unhas, Makassar [14] Truss, C. (2001). Complexities and controversies in linking HRM with organization outcomes, Journal of Management Studies, 38(8), [15] Ulfa, M dkk. (2011). Pengaruh kompensasi terhadap motivasi kerja dan kinerja karyawan (Studi pada Karyawan Auto 2000 Malang Sutoyo). Jurnal ilmu administrasi [16] Umar, A. (2011). Pengaruh Upah, Motivasi Kerja, dan Kepuasan Kerja terhadap Kinerja Pekerja pada Industri Manufaktur di Kota Makassar. Jurnal Manajemen ISSN: [17] K. Vijaya Sekhar Reddy, Dr. Tamarana Srinivasa Rao and Dr N. Roopalatha, An Effectiveness of Human Resource Management In Small and Medium Industries An Telangana Experience, 8(7), 2017, pp , 8(7). [18] Dr. R. Khader Mohideen and A. Sophia Alphonse, A Study On Employees Perception On Human Resource Management Practices In Cement Industries Special Reference To Madras Cements Limited (Ramco), Ariyalur, International Journal of Management (IJM), Volume 6, Issue 1, January (2015), pp [19] Dr. Govind Dave and Kirti Makwana, A Study on Assessing Expatriate s Challenges during an International Assignment: International Human Resource Management Perspective. International Journal of Marketing and Human Resource Management, 7(2), 2016, pp editor@iaeme.com