The Influence of Incentive and Motivation toward the Employee Achievement (A Case Study on Ganesha Operation in Tebing Tinggi)

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Human Journals Research Article January 2018 Vol.:8, Issue:3 All rights are reserved by Yomeini Margareth Sagala The Influence of Incentive and Motivation toward the Employee Achievement (A Case Study on Ganesha Operation in Tebing Tinggi) Keywords: Incentive, motivation, employee achievement ABSTRACT Yomeini Margareth Sagala Institute of Economic Science, Bina Karya Tebing Tinggi, Indonesia Submission: 23 December 2017 Accepted: 30 December 2017 Published: 30 January 2018 www.ijsrm.humanjournals.com This research aim is to observe the influence of incentive and motivation toward the employee achievement, which becomes the important issue in a number organization. This is an explanatory research where the researcher did the observation in collecting data and took some notes, analyzing and explaining those data. This research was held in Ganesha Operation Company in Tebing Tinggi by taking the employee population completely. This took ninty three employees. This sample took randomly and took eighty-three respondents. The purpose of this study is to know the significant influence on giving the incentive and motivation toward the employee achievement on Ganesha Operation Company in Tebing Tinggi partially. In addition, to know whether giving incentive and motivation have the significant influence on the employee achievement. Overall, this research can conclude that the independent variable has the significant influence toward the employee achievement equally and partially. From the two independent variables, the most dominant influence toward the employee achievement is an incentive because has the most t-sum and beta confession.

INTRODUCTION Human resource is one of the vital assets in a company because the company successful is started from the human resource developing activity. Train the human preparedness, creativity, and spirit of the company as the main activator in a company. Whatever the business enterprise, the human resource will take an important role in the company final result. Therefore, the reliable human resource and competent is needed by the company. The efforts that can be established to achieve the company target which also supporting the employee in fulfilling their needs is by giving the incentive and motivation. To support the employee to achieve the good achievement, the company should take care of the needs which are related to employee incentive and motivation. Problem Formulation The problem that formulated based on the background knowledge is whether giving incentive and motivation affect the employee achievement. Objective of the Study The objective of the study is to know whether giving incentive and motivation influence the employee achievement. REVIEW OF LITERATURE A. Incentive The incentive is an additional salary given to the employee based on the employee achievement with the aim so the employee can work better and achieve the higher achievement, so the employee will do their job wholeheartedly when there is a high work motivation. The purpose of giving incentive is to fulfill the employee needs and their family. Simamora (2004:514) said that incentive is a compensation program, which relates the payment and the productivity. Hasibuan (2007:117) states that incentive is an additional salary given to the employee who has the achievement over the standard achievement. This incentive is a tool, which uses the fair principle support in giving the compensation. Therefore, giving incentive is a method, which can present the work spirit within the employee bigger than before getting more achievement and improve it. Giving incentive 231 273

divided into two types, those are the material incentive and nonmaterial incentive. B. Motivation The self-motivation within the individual is called as the motive. It means that motive is a supporting psychology, activating or distribute the attitude-behavior and an individual manner which always related to the organization target achievement and also the individual purposes of the organization. Hasibuan (2007:95) said that motivation is giving the activator potency which creates the individual work enthusiasm so they do their job with all efforts to achieve the satisfaction." A manager or a leader success in support his employee if he is able to create the good motivation for his employee. Therefore, every leader has to understand what the motivation is, and know when the leader needs to motivate his employee. Within the good motivation, the employee will do their job spirit ful so the work productivity and the company targets are achieved. The theory that applied to classify the motivation based on the human needs is ERG Alderfer s theory. Robbins (2003:124), Alderfer argued that there are three types of needs. Those are existence, relatedness, and growth. This ERG theory is related with the daily activity that people in their daily life will defend their existence, need the social interaction with the environment and people always wants to grow up and develop through their own ability. C. Employee Achievement The employee achievement is the result or the whole employee successful in a certain time when running the task compare with another thing, like work standard result, target or the object or the criteria that have determined and has agreed. For further information, it will be explained some definition of achievement, such as the achievement definition based on Supratikno (2006:12), achievement is a complex multidimensional construction, which has much differentiation in the definition. It depends on who is evaluating, how to evaluate, and what aspect that evaluated". Rivai (2004:304) stated that achievement is the motivation and ability function". For finishing the task or someone job, it should have the available degree and certain level of ability. From that definition, it concludes that employee achievement is the work achievement or output or good work result in quantity and the quality that the employee achieved in a certain time in doing their job based on his responsibility. According 232 273

to Robbin (2003:187), achievement is the interaction function between the ability and the motivation so it works = f (A x M). If there is a not proper achievement will affect negatively, beside motivation, it needs to consider the ability and capability to assess the employee achievement." Through the high motivation, it has the high achievement and in return. From that explanation, it concludes that the two factors, motivation and ability have the positive relation. MATERIALS AND METHODS Based on the target research, the type of this research is describing and uncovering a problem, so this research applied the explanatory research. The explanatory research focuses on the relation of research variable and examining the hypothesis that formulated previously. Even though the explanation contains description, but for the relational research, the focus is on the explanation of the variables interrelation. Population and Sample This research population is the employee of Ganesha Operation Company in Tebing tinggi, with the total ninety-three employees. Meanwhile to take the sample of this research used Slovin formula. With the total population are ninety-three employees. So these research samples are eighty employees. Variable and Measuring Scale These research variables will be explained as seen in the following table: Table 1: Variable and Research Indicator Variable Incentive (X1) Motivation (X2) Employee achievement (Y) Indicator 1. material Incentive 2. nonmaterial incentive 1. Existantion 2. relation 3. growth 1. quality 2. quantity 3. time allocation 233 273

Data Analysis Methodology This research applied some data analysis methodology, those are: 1. Descriptive Analysis Descriptive analysis used in describing the incentive variable, motivation variable, and employee achievement variable by distributing one by one from the variable items. 2. Inferential Analysis The inferential analysis is applied to test the available data population parameter, by using the data from the respondent, analyzed and examined using the SPSS program for Windows. This is to make easy in analyzing data in the form of statistic numerical and then conclude a conclusion. Below is the technic analysis that implemented in this research. a. Multiple Linear Regression Analysis Multiple regression analysis is an analysis of the relation between one dependent variable with two or more independent variables. So if it is related to this research so the multiple regression analysis is to identify the incentive variables which affect the employee achievement variable. b. Hypothesis test 1) Partial test (t-test) T-test implementation is to test the regression confession partially or to know the influence of incentive variable and motivation variable toward the employee achievement variable. The t- test statistic is used to know the most dominant, which influence the employee achievement variable. 2) Simultan test (F test) This test is used to test the hypothesis simultaneously between the incentive variable and motivation variable toward the employee achievement variable in multiple regression models. 234 273

RESULTS AND DISCUSSION The hypothesis test is to know whether the hypothesis in this research proved that there is an influence between the incentive variable and motivation variable toward the employee achievement variable that surveyed on CV Suka Alam (Kaliwatu Rafting) Kota Batu, East Java, using the SPSS program for Windows. This following table is confession table. Table 2: Regressive Test Result and Multiple Correlations Independent Unstandardized Standardized T-sum Probability Variable Coefficients Beta coefficient (Constant) 6.901 3.021 0.003 X1 0.591 0.440 3.703 0.000 X2 0.316 0.325 2.738 0.008 Dependent Variable : Y R : 0.718 R square (R2) : 0.515 Adjusted R square: 0.503 F sum : 42.479 F Sum probability : 0.000 Source: primary data (analyzed in 2015) This determination confusion is used to count the influence level or the independent variables contribution toward the dependent variable. From the data analysis, it obtains R square (determination confusion) is 0.515. It means 51.5% the dependent variable, the employee achievement is influenced by the dependent variables, those are the incentive (X1) and motivation (X2). Meanwhile, the rest is 48.5% of the employee achievement can be influenced by others variables which are not discussed in this research. Beside determination coefficient, it obtained the correlative coefficient which shows the relation between the independent variable, incentive (X1) and motivation (X2) with the employee achievement (Y), R score (correlation confession) is 0.718, it means this correlation score shows that the relationship between independent variable, incentive (X1) and motivation (X2) with the employee motivation (Y) belong in the strong category because put in range 0.6 0.8. The relation between independent variable, incentive (X1) and motivation (X2) with the employee achievement (Y) is positive, means that if the independent variable improved so 235 273

the employee achievement will be increased. Based on table 2, F sum is 42.479. Meanwhile, the F table is 3.111. Because F sum > F table that is 42.479 > 3.111, therefore the regressive analysis model is significant. It means that H0 is rejected and H1 is accepted so the conclusion is the dependent variable (employee achievement) significantly influenced by the independent variable (incentive (X1)) and motivation (X2). The t-test between X1 (incentive) and Y (employee achievement) shows that the t-sum is 3.703. Meanwhile, t-table is 1.990. Because t-sum > t table that is 3.703 > 1.990, so the X1 influence (incentive) toward the employee achievement is significant. It means H0 is rejected and H1 is accepted. The conclusion is the employee achievement is influenced by incentive or by improving the number of the incentive so the employee achievement will increase significantly. The t-test between X2 (Motivation) and Y (employee achievement) shows that t-sum is = 2.738. Meanwhile, the t-table is 1.990. Because the t-sum > t table 2.738 > 1.990 so the X2 (Motivasi) influence toward the employee achievement is significantly on alpha 5%. It means H0 is rejected and H1 is accepted. It concludes that the employee achievement is influenced significantly by motivation or by increasing the motivation so the employee achievement will increase too. From overall, it concluded that the independent variable has the significant influence toward the employee achievement simultaneously and partially. It comprehends that the most or the dominant influence toward the employee achievement is an incentive. Because the incentive has, the most beta coefficient score and t-sum compare with the motivation. DISCUSSION This research implements two independent variables, those are incentive and motivation toward the dependent variable in this context is the employee achievement in Ganesha Operation Company in Tebing Tinggi produce the statistical data with the aim is to produce the accurate and significant data analysis. The discussion of statistic test completely as see in this following explanation: 236 273

1. The Influence of Incentive Variable and Motivation Partially toward the Employee Achievement The partial hypothesis test shows the influence of incentive and motivation toward the employee achievement of Ganesha Operation Company in Tebing Tinggi. The statistical analysis shows the varied result. This following explanation will explain the analysis result further. a. The Influence of Incentive toward the Employee Achievement The incentive variable has the positive and significant correlation toward the employee achievement. This shows the incentive variable including the material incentive such as giving the reward, benefit share, and social insurance. In addition, incentive nonmaterial such as career promotion and the boss compliment that influence the employee achievement in Ganesha Operation Company in Tebing Tinggi. In this case, this company is able to give the good incentive to the employee. b. Motivation Influence toward the Employee Achievement The motivation variable has the positive and significant relation toward the Ganesha Operation Company in Tebing Tinggi employee achievement. This shows that motivation variable which covers the existence needs, that is the condition or work situation and safety work, a relation needs that is the relation with the boss and the relation with the office mate, and also the development needs, that is work creatively, working hard to fulfill the employee needs, and work competently for the hoped successfulness by the employee has influenced the employee achievement in Ganesha Operation Company in Tebing Tinggi. In this case, the motivation that appears from the employee itself has been pushed their enthusiasm for a good work so it affects their achievement in the company. Partially, the result of this research shows that the contribution of incentive variable (X1) is 0.591 and motivation variable (X2) is 0.316. Incentive variable beta coefficient is 0,440 and the t sum is 3.703. Meanwhile, the motivation variable beta coefficient is 0.325 and the t-sum is 2.378. It obtains the independent variable which has the most dominant influence toward the employee achievement is an incentive because it has the most beta coefficient score and the most t sum. 237 273

2. The Influence of Incentive and Motivation Variable toward the Employee Achievement Simultaneously The hypothesis test simultaneously for F sum is 42.479, meanwhile, the F table is 3.111. Because the F sum > F table, 42.479 > 3.111, so regressive analysis model is significant. It means H0 is rejected and H1 is accepted. It can conclude that the independent variable, employee achievement (Y) can be influenced significantly by the independent variables, incentive (X1) and motivation (X2). The result of multiple liner regressive analysis shows that adjusted R2 score is 0.503, which means there is a significant influence from the independent variables like incentive and motivation is 50.3% toward the employee achievement in Ganesha Operation Company in Tebing Tinggi. The rest 49,7% is the employee achievement will be influenced by other variables which are not discussed in this study, such as ability variable. As Robbins (2003:187) stated that achievement is an interaction function between the ability and motivation to work = f ( A x M). if there an inappropriate achievement will influence negatively, besides motivation it needs to consider the ability and capability to assess an employee. Robbins (2003:46) stated that ability is an individual capacity to do various tasks within a job. Whereas an individual ability consists of two factors basically, those are the intellectual ability and physic ability. CONCLUSION This aim of this research is to know which independent variable has influenced the dependent variable. The independent variable in this research is incentive variable (X1) and motivation (X2), meanwhile, the dependent variable is employee achievement (Y). Based on the multiple regressive linear analyses, it shows that: 1. The simultaneous influence from the independent variable toward the employee achievement proved by the F test. From the multiple regressive linear analyses, it obtains F score is 0.000. It means the F significance is less than 0.05, so H0 is rejected and Ha is accepted. It means that the independent variable has the significant influence on the employee achievement. It concludes that the hypothesis test, which shows the simultaneous influence of the independent variable and the employee achievement variable, is accepted. 2. Partially, to know the influence of the independent variables, incentive (X1) and motivation (X2) toward the employee achievement proved by t-test. In addition, the result is 238 273

the two variables have the significant influence toward the employee achievement those are incentive and motivation. Based on the t-test result, it obtains the incentive variable has the most t-sum and beta coefficient. Therefore, incentive variable has the most dominant influence compare with motivation variable. Therefore, incentive variable has the most dominant influence on the employee achievement. SUGGESTIONS Based on the planned conclusion previously, it suggests some suggestions that hopefully will be meaningful for the company and other people in the future. The writer suggested that company should be able to defend and improve the incentive service, because incentive has the most dominant influence toward the employee achievement like giving additional reward, giving the job promotion because the employee is well competent to develop his creative ideas in improving the company, sharing the benefit for the best employee which means can achieve more than the company target, and give the social guarantee which the employee needs in their life, like the guarantee for hospital free charge whenever the employee is hospitalized and when the employee delivering her baby or the employee's wife who is delivering her baby will get the free charge for the delivering baby, so there will be the employee improvement achievement. Because the independent variable in this research is very important in order to influence the employee achievement, it is hoped that the result of this study can be used as a guideline for the next researcher to develop this research by considering other variables. The variable that can be improved is ability factor like intellectual ability and physic ability. Those can be used the additional variable for further research so the result will be much better. REFERENCES 1. Hasibuan, M, S.P. 2007. Organisasi dan Motivasi. Jakarta: Bumi Aksara. 2. Rivai, V. 2004. Manajemen Sumber Daya Manusia. Jakarta: Ghalia Indonesia. 3. Robbins, SP. 2003. Perilaku Organisasi. Jilid 1. Diterjemahkan Tim Indeks. Jakarta: PT Indeks Kelompok Gramedia. 4. Simamora, H. 2004. Manajemen Sumber Daya Manusia. Yogyakarta: STIE YKPN. 5. Supratikno, H. 2006. Manajemen Kinerja Untuk Menciptakan Keunggulan Bersaing. Yogyakarta: Graha Ilmu 239 273