International Journal of Information System and Innovation Management Volume 1 Issue 1 June 2023 Page : 46-56 Effect of Compensation.
Motivation and Organizational Commitment on Employee Perfomance Hari Lestari1.
Elnura2.
Dadi Komardi3 Institut Bisnis dan Teknologi Pelita Indonesia.
Indonesia1,3 Altysarin Arkalyk pedagogical institute.
Kazakhstan2 harilestari1@gmail.
Submitted: 28 May 2023.
Accepted: 21 June 2023.
Published: 30 June 2023
ABSTRACT
The purpose of this study was to determine the compensation, motivation and organizational commitment to employee performance at PT.
Arta Batrindo Branch Pekanbaru.
Samples are 45 employees.
The sampling technique used is the saturation sampling .
Data obtained from respondents using data collection tool in the form of a questionnaire.
The data analysis used is multiple linear regression analysis using SPSS 19.
The results of this study indicate that the variable compensation and no significant effect on the performance of employees of, no motivation variable and no significant effect on the performance of employees of, and variable Organizational Commitment and significant effect on the performance of And simultaneously, variable compensation, motivation and organizational commitment and significant effect on the performance of employees.
This means that in deciding to perform work activities are influenced by three variables together, so that when these three variables stronger it will improve employee performance.
Keywords: Compensation.
Motivation.
Organizational Commitment.
Employee Performance.
Introduction In any organization, human resources (HR) occupy the most vital position.
Human resources are the only resources that have reason, feelings, desires, abilities, skills, knowledge, drive, power and work.
All of these human resource potentials are very influential on organizational efforts in achieving their goals.
No matter how advanced the technology, the development of information, the availability of capital and adequate materials, but if without human resources it will be very difficult for the organization to achieve its goals.
Human resources is a movement of recognition of the importance of the human element as a potential resource, which needs to be developed in such a way that it is able to make a maximum contribution to the organization and to its development.
The existence of manpower as one of the factors of production is very important for the organization.
In its development, the organization will face increasingly complex labor problems, thus human resource management must be carried out professionally by a separate department in an organization, namely the Human Resource Department.
Human resources as the most important thing an organization has, one of the implications is that the most important investment made by an organization is in the field of human resources (Rizal et al.
, 2.
Therefore, in order for an organization to achieve maximum performance, fair and satisfactory treatment of human resources working in the organization is required.
Human resources that are managed very well will also provide excellent performance in the organization or company.
Performance is the result or level of success of a person as a whole during a certain period in carrying out tasks in comparison with various possibilities.
Lestari .
such as work result standards, targets or goals that have been determined in advance and have been agreed upon together and are a function of motivation and ability to complete tasks or work (Widagdo et al.
, 2.
Employee performance is the result that a person achieves in carrying out the tasks assigned to him.
Employee performance includes quality and quantity of output.
Human resource management has an important role in a company organization.
This means that good human resource management will improve employee performance.
Every company expects high employee performance (Imron et al.
, 2.
This must be balanced with the abilities of employees, hard work of employees, cooperation between employees, a good leadership system and providing good motivation.
Every employee who has worked in accordance with their abilities, creativity, knowledge, energy and time (Pertiwi & Supartha On the other hand, they expect certain rewards.
The company seeks and fosters employees with high enthusiasm in order to create and maintain superior human resources and be able to compete.
Motivating employees is done for the sake of the company's progress and success goals.
The company seeks and fosters employees with high enthusiasm in order to create and maintain superior human resources and be able to compete.
Motivating employees is done for the progress and success of the company.
With high motivation, employees will be more active in carrying out their work.
Conversely, with low work motivation, employees do not have the enthusiasm to work, give up easily, and have difficulty completing their work.
PT Arta Batrindo is a national scale company with a branch in Pekanbaru which is engaged in general trading and distribution.
Has more than 11 of the largest branches throughout Indonesia and is centered in Jakarta.
The following are the results of the company's performance and the work of PT.
Arta Batrindo Pekanbaru employees which can be described through the achievement of targets and realization of product sales in the following table:
Table 1.
Target and Realization of Product Sales at PT.
Arta Batrindo Pekanbaru Month Januari Februari Maret April Mei Juni Juli Agustus September Oktober November Desember Target .
n Rp.
Millio.
Realization .
n Rp.
Millio.
Target
Achievement
80,8 %
56,8%
64,0%
81,1%
79,9%
68,8%
81,0%
83,6%
81,0%
88,3%
81,1%
89,5%
78,0%
Source: PT.
Arta Batrindo Pekanbaru .
The management has set a minimum monthly sales target of 85%.
This sales target is expected to motivate sales to work diligently which of course will get incentive rewards according to the sales of each sales.
Besides that, the sales target that has been set is expected to be able to reduce the expenses incurred by the company.
The table shows that the average monthly target achievement within one year was not achieved because it only resulted in an average target achievement of 78.
0%, this was because several employees left within one year, causing the realization of sales targets not to be achieved.
Sales of products that were not achieved, namely battery products, tire products also experienced a decrease in performance which resulted in not achieving sales targets every month but unlike a decrease in sales performance for battery products, because leaders did not provide compensation and motivation to employees so that employee commitment to achieving targets was not fulfilled.
Lestari .
so that there is a decrease in performance caused by a lack of attention from leaders to For companies, performance research is very useful for assessing the quantity, quality, efficiency of changes, as well as conducting monitoring and improvement.
Optimal employee performance is needed to improve performance and maintain the survival of this One of the reasons for the performance of PT.
Arta Batrindo's decline is due to his poor compensation, especially in terms of the salary/wage indicator, which is still below the Pekanbaru UMK.
Compensation is very important to motivate employee performance, employees with good performance will be given awards that make these employees improve their performance again.
Motivation at PT.
Arta Batrindo also looks lacking, due to lack of compensation so employees are not motivated and employees don't want to know and don't care about their work, employees are just lazy while working, work motivation is very important in an organization, with good motivation will achieve better goals Again.
Organizational commitment at PT.
Arta Batrindo is very lacking because many employees have left within one year.
Formulation of the problem how does the influence of compensation, motivation and organizational commitment on the performance of PT Arta Batrindo's employees partially? Research objectives to determine the effect of compensation, motivation and organizational commitment to the performance of employees of PT.
Arta Batrindo.
Literature Review According to Gunawan & Gunawan .
compensation is what is received by employees in exchange for their contribution to the organization.
According to Sari & Dewi .
:AuThere are two key considerations in an effective compensation system.
First, the compensation system must be adaptive to the situation.
The system must fit the environment and take into account the objectives, resources and organizational structure.
Second, the compensation system must motivate employees.
The system must be able to satisfy employee needs, ensure fair treatment of employees, and provide rewards for employee performance.
According to Riana & Wirasedana .
, "Compensation is all income both money and goods, directly or indirectly received by employees in return for services provided to With the spirit of work, the expected results for the company will be more satisfying and the employees will also work more actively in order to get good results and will produce good work performance as well.
The basic word motivation is motive which means encouragement, the cause or reason for someone to do something.
Every activity carried out by a person is driven by a force from within that person, this driving force is called motivation.
Motivation is a complex problem in organizations, because the needs and desires of each member of the organization are different.
Employees who have high work motivation will be able to encourage these employees to work more enthusiastically and be able to make a positive contribution to the work they are responsible for.
Without motivation, an employee cannot fulfill his work according to standards or exceed standards because what motivates him to work is not fulfilled.
Even if an employee has a high ability to work but does not have the motivation to complete the task, the final result in his work will not be satisfactory.
To create employee performance so that it runs effectively, this is not only driven by motivation but by having high work ability.
According to Azmy .
motivation is a state in a person's personality that encourages the individual's desire to carry out certain activities in order to achieve goals.
Motivation according to Triana .
is "a process in which needs encourage a person to carry out a series of activities that lead to the achievement of certain goals.
If the needs have been met then satisfaction will be achieved.
A group of unsatisfied needs will cause tension, so it is necessary to carry out a series of activities to seek the achievement of specific goals Lestari .
that can satisfy this group of needs, so that tensions are reduced (Rumawas 2.
, states that work motivation is the provision of driving force that creates the excitement of one's work so that they want to work together, work effectively, and integrate with all their efforts to achieve According to Sudarno and Sukmaningrum .
organizational commitment is a behavioral perspective where commitment is defined as behavior that is consistent with activity .
onsistent lines of activit.
The higher the employee's commitment to the organization can improve the employee's performance.
According to Suwarto and Suhartono .
states that the nature of organizational commitment can change over time in work that is more varied and has freedom in making judgments.
According to Yamali .
organizational commitment is the degree to which employees believe and accept organizational goals and will stay or will not leave the organization.
According to Qomariah et al.
organizational commitment as a condition in which an employee sided with a particular organization and its goals and intends to maintain membership in the organization.
High commitment to the organization can be interpreted that the employee's partisanship .
to the organization that employs him is high.
Research Method A population is a generalization area consisting of objects or subjects that have certain quantities and characteristics applied by the researcher to study and then draw conclusions.
The population in this study is all employees at PT.
Arta Batrindo, totaling 45 employees.
Based on the number of populations at PT.
Arta Batrindo, the sample used is a population The sampling technique in this study uses a census technique.
Because the population to be studied is less than 100 people, so the samples taken come from all existing populations in the company totaling 45 employees.
The data analysis used is quantitative analysis, namely with a model to measure the influence of leadership, work motivation and work ability on employee performance using multiple linear regression calculations.
For testing it is assumed that employee performance (Y) is influenced by leadership (X.
, work motivation (X.
, and work ability (X.
Results and Discussion Validity test Validity test is used to measure the validity of an instrument or questionnaire used in research so that data collection instruments have a high level of accuracy.
If the validity value of each statement item is > 0.
3, then the statement items are said to be valid.
Table 2.
Test the Validity of Compensation.
Motivation.
Organizational Commitment Variables Variabel Item Compensation (X.
X1.
X1.
X1.
X1.
X1.
X2.
X2.
X2.
X2.
X2.
X2.
X2.
X3.
X3.
X3.
Motivation (X.
Organizational Commitment (X.
Corrected Item- Total Correlation Conclusion Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Lestari .
Employee (Y) X3.
X3.
Y1.
Y1.
Y1.
Y1.
Y1.
Y1.
Y1.
Valid Valid Valid Valid Valid Valid Valid Valid Valid Source: Research Results, 2020 (Processed Dat.
The validity test in this study can be seen in the Corrected Item-Total Correlation From the results of the validity test carried out, it was found that each statement item had a value of > 0.
3, so it could be said that the instrument used in this study was valid.
Based on the table above, it shows that all statement items for the compensation variables (X.
Motivation (X.
, and Organizational Commitment (X.
have a correlation value greater than Thus, it means that the statement items on all variables are valid for further testing.
Test Reliability The reliability test is used to determine the consistency of measurement results when it is repeated for the same object.
To measure reliability, the research instrument was carried out using Cronbach's Alpha ().
If the Cronbach's Alpha () value of the variable is Ou 0.
6, then the research object is said to be reliable.
Table 3.
Research Instrument Reliability Test Variable Compensation (X.
Motivation (X.
Organizational Commitment (X.
Employee Performance (Y) CronbachAos Alpha Conclusion Reliable Reliable Reliable Reliable Source: Research Results, 2020 (Processed Dat.
From the table above, it can be seen that the results of the reliability test on the variables of compensation, motivation, organizational commitment and employee performance have Cronbach's Alpha () values greater than 0.
Thus it means that all variables with this research instrument are reliable.
Normality test The normality test was carried out to see whether the data in the regression model were normally distributed or not.
A good regression model has normal or close to normal data In a normal probability plot, the data is said to be normal if there is a spread of dots around the diagonal line and the spread follows the direction of the diagonal line.
If the data curves around the normal line and follows the direction of the normal line, then the regression model meets the normality assumption (Ghozali, 2.
For more details can be seen in the following image.
Figure 2.
Normality Test Source: Research Results, 2020 (Processed Dat.
Lestari .
One-Sample Kolmogorov-Smirnov Test This test is conducted to show that the data is normally distributed.
Table 4.
One-Sample Kolmogorov-Smirnov Test Normal Parametersa,b Most Extreme Differences Kolmogorov-Smirnov Z Asymp.
Sig.
-taile.
Test distribution is Normal.
Calculated from data.
Mean Std.
Deviation Absolute Positive Negative Unstandardized Residual Source: Research Results, 2016 (Processed Dat.
In the picture above, it can be seen that the results of the Normality test with the Kolmogorov-Smirnov Test show a KSZ value of 0.
677 and Asymp.
Sig.
-taile.
749 is greater than 0.
This means that it shows that the data is normally distributed.
Heteroscedasticity Test The heteroscedasticity test is carried out to see whether the data in the regression model occurs inequality of variance from one observation to another.
The heteroscedasticity test is carried out using the scatterplot method.
If the points in the scatterplot form a regular pattern .
avy, widening, then narrowin.
then heteroscedasticity symptoms have occurred.
The heteroscedasticity test aims to test whether in the regression model there is an inequality of variance from the residuals of one observation to another.
If the variance and residuals of one observation to another observation are constant, it is called homoscedasticity.
To detect the presence or absence of heteroscedacity, you can look at the plot graph between the predicted value of the dependent variable (ZPRED) and its residuals (SRESID).
If there is no clear pattern, and the dots spread above and below the number 0 on the Y axis, then there is no heteroscedacity.
Figure 3.
Heteroscedasticity Test Source: Research Results, 2016 (Processed Dat.
From the picture above, it can be seen that the scatterplot results from heteroscedasticity testing show that the data spreads randomly above and below zero on the Regression Studentized Residual axis, meaning that the regression model in this study is free from heteroscedasticity symptoms.
Lestari .
Lestari .
Multicollinearity Test The multicollinearity test is used to ensure that the independent variables .
are not correlated or multicollinearity occurs, because this is not allowed in testing regression models.
The conditions for the absence of multicollinearity are Tolerance Value> 0.
1 and Variance Inflation Factor (VIF) < 10.
Table 5.
Multicollinearity Test Variable Collinearity Statistics Conclusion Tolerance VIF Compensation (X.
No Multicollinearity Motivation (X.
No Multicollinearity Organizational commitment No Multicollinearity (X.
Source: Research Results, 2016 (Processed Dat.
From the table above, it can be seen that between the independent variables of compensation, motivation and organizational commitment there is no multicollinearity because the tolerance value is above 0.
1 and the VIF value is below 10.
Multiple Linear Regression Multiple linear regression is used to determine the effect between the independent variable and the dependent variable, as well as to see the results of testing the proposed hypothesis.
Table 6.
Multiple Linear Regression Model Unstandardized Standardized Coefficients Coefficients Std.
Error Beta (Constan.
X1 (Compensatio.
X2 (Motivatio.
X3 (Organizational commitmen.
Source: Research Results, 2016 (Processed Dat.
From the preliminary test results, it is known that the existing equation model data is considered normal and does not have multicollinearity and heteroscedasticity disorders.
That way, testing can be continued.
Multiple linear regression analysis is used to determine whether there is an influence between the independent variable and the dependent variable.
Based on the results of the SPSS calculation, the multiple linear regression equation is as follows:
Y = 0.
282X1 - 0.
050X2 0.
Hypothesis Testing Results After testing the normality of the data and testing the classical assumptions, the next step is to test hypothesis 1 (H.
to hypothesis 2 (H.
Testing the level of significance (Test Of Significanc.
is a hypothesis procedure.
The analytical tools that can be used are the coefficient test (R.
, t test and F test.
Simultaneous Hypothesis Testing Results (Test F) To test the research hypothesis which states that compensation, motivation and organizational commitment simultaneously have a significant effect on employee performance, it is necessary to test simultaneously or the F test.
The hypothesis model proposed includes:
H0 : 1 = 2 = 3 = 0, meaning that compensation, motivation and organizational commitment simultaneously do not affect employee performance.
H1: at least one O 0, meaning that compensation, motivation and organizational commitment simultaneously affect employee performance.
Lestari .
The criteria for simultaneous hypothesis testing is if Fcount < Ftable at = 5%, then H0 is accepted and H1 is rejected, otherwise if Fcount> Ftable at = 5%, then H0 is rejected and H1 is accepted.
The results of simultaneous testing can be seen in the table below:
Table 7.
Simultaneous Significant Test (F Tes.
ANOVAb Model Sum of Squares Mean Square Sig.
1 Regression Residual Total Source: Research Results, 2016 (Processed Dat.
The F test is used to determine whether all independent variables jointly affect the dependent variable.
From the table of regression analysis results, the calculated F value is 14,680 with a significance level of 0.
This value is statistically significant because the significance level is below 0.
05, which means that the independent variables .
ompensation, motivation and organizational commitmen.
jointly affect the dependent variable .
mployee Coefficient of Determination Analysis Results The coefficient of determination (R.
is intended to determine the best level of accuracy in regression analysis, which is indicated by the magnitude of the coefficient of determination (R.
between 0 .
and 1 .
The coefficient of determination (R.
of zero independent variables has absolutely no effect on the dependent variable.
If the coefficient of determination is closer to one, it can be said that the independent variable has an effect on the dependent variable.
In addition, the coefficient of determination is used to determine the percentage change in the dependent variable (Y) caused by the variable (X).
Table 8.
Coefficient of Determination (R.
Model R Square Model Summary b Adjusted R Std.
Error of the Square Estimate Durbin-Watson Source: Research Results, 2016 (Processed Dat.
This test is conducted to determine how much the influence of the independent variables in the model affects the dependent variable.
This value is indicated by the value of Adj.
R2.
From the results of the regression analysis table, the Adj.
value obtained is 0.
which means that 48.
3% of employee performance can be explained by compensation, motivation and organizational commitment, while the remaining 51.
7% is influenced by other factors that are not explained.
Partial Hypothesis Testing Results .
Tes.
Partial hypothesis testing .
is useful for testing the partial effect of variable X on variable In this study, the partial effect of variable X, namely leadership, work motivation, and work ability on variable Y, namely employee performance will be tested.
This test is conducted to see the significance of each variable separately on the dependent variable with the following hypothesis provisions:
H0: bi = 0, meaning that there is no influence of the independent variable on the dependent Ha: bi O 0, meaning that there is an influence of the independent variable on the dependent The t-test calculation uses the following formula:
t hit = 1 Lestari .
Where:
= t count = regression coefficient = standard of error of b1 The test is carried out by comparing the t value obtained from the calculation with the t value in the t table with an error rate () of 5% and a degree of freedom .
of n-k, with decision-making criteria.
Table 9.
Partial Significance Test .
-tes.
Model Sig.
Conclusion (Constan.
Sig X1 (Compensatio.
Sig X2 (Motivatio.
No Sig X3 (Organizational commitmen.
Sig Source: Research Results, 2016 (Processed Dat.
From the results of the regression analysis above, it can be seen that not all independent variables included in the model have t-count values whose significance level is less than 0.
In the entire period, the value of = 0.
05, not all independent variables are statistically significant and individually affect the dependent variable.
Compensation variables (X.
and Organizational Commitment (X.
have a significant influence individually on employee performance variables.
While the variable Motivation (X.
is not statistically Effect of Compensation on Employee Performance From the results of descriptive analysis shows that compensation is a factor that is considered high by respondents in employee performance.
This is not in line with the results of regression analysis and partial testing .
of the compensation variable which shows the tcount value 199 is greater than the t table 2.
018 or a significant value of 0.
034 greater than alpha 0.
which means that compensation has an effect and significant.
This means that partially it can be stated that the compensation variable has a real and significant effect on employee performance.
And because the compensation variable has a positive regression coefficient, this means that compensation has an influence on employee Compensation is one dimension of competence that is very decisive for the performance or success of the organization.
From the results of research conducted by previous researchers Atman .
, that the compensation variable has a positive and significant effect on the performance of respondent This means that from previous research and research conducted at this time there are differences, namely from the results of previous tests, compensation has an effect and is significant, while in the research conducted at this time compensation also has an effect and is significant on employee performance.
meaning that if reviewed from the descriptive results, there are several important items in the compensation variable that must be improved such as salary, bonuses, insurance, and others, because the descriptive results only get a sufficient Effect of Motivation on Employee Performance From the results of descriptive analysis shows that motivation is a factor that is considered low by respondents in employee performance.
This is not in line with the results of regression analysis and partial testing .
of the motivation variable which shows the tcount value of 447 is smaller than the t table 2.
018 or the significant value of 0.
657 is greater than alpha 05 which means that motivation has no effect and is not significant.
This means that partially it can be stated that the motivation variable has no effect and is not significant in real terms on employee performance.
And because the motivation variable has a positive regression coefficient, this means that motivation has a positive influence on Lestari .
employee performance.
Motivation is the drive or enthusiasm for someone to do something work or activity.
From the results of research conducted by previous researcher Atman .
, that the motivation variable has a positive and significant effect on the performance of respondent This means that from previous research and research conducted at this time there are differences, namely from the results of previous tests, work motivation has a significant effect, while in the current study motivation has no effect and is not significant to employee Effect of Organizational Commitment on Employee Performance From the results of descriptive analysis, it shows that organizational commitment is a factor that respondents consider important in employee performance.
This is not in line with the results of regression analysis and partial testing .
of the organizational commitment variable which shows the tcount value of 3.
544 is greater than the t table 2.
018 or a significant value of 0.
001 greater than alpha 0.
05 which means that organizational commitment has a positive and significant value.
This means that partially it can be stated that the organizational commitment variable has a real significant effect on employee performance.
And because the organizational commitment variable has a positive regression coefficient, this means that organizational commitment has an influence on employee performance.
Organizational commitment is a factor that greatly affects employee performance, which can improve employee performance.
From the results of research conducted by previous researchers (Yosa & Zunaidah, 2.
, that the organizational commitment variable does not have a positive and significant effect on the performance of respondent employees.
This means that from previous research and research conducted at this time there are differences, namely from the results of previous tests, organizational commitment has no significant effect on employee performance, while in the current study organizational commitment has a significant effect on employee this means that when viewed from the descriptive results, there are several important items in the organizational commitment variable that must be improved because the descriptive results only get a sufficient assessment.
Conclusions The conclusions that can be drawn from the results of the research that has been done include:
Compensation has a significant effect on employee performance.
In this study, the compensation variable has a positive influence, which means that if high compensation will improve employee performance.
Motivation has no effect and is not significant to employee In this study, the motivation variable has a positive influence, which means that if the motivation is high, it will improve employee performance.
Organizational commitment has an effect and is significant on employee performance.
In this study, the organizational commitment variable has a positive influence, which means that if the organizational commitment is strong, it will improve employee performance.
For further researchers, it is hoped that they can examine other variables outside the variables that have been studied with this study in order to obtain varied results that can affect employee performance.
while for the Company must be able to maintain and improve the work ability of employees to improve performance for the achievement of company goals.
Therefore it is advisable for the company to continue to review other variables that are considered capable of improving employee performance in a better direction.
Lestari .
References :