JURISMA: Jurnal Riset Bisnis dan Manajemen Volume Xi Nomor 1 (April 2.
E-ISSN: 2338-292X (Onlin.
P-ISSN: 2086-0455 (Prin.
E-mail: Jurisma@email.
Effects of Internship Programs and Company Core Values on Employee Performance Renata Nabilah Luthfi Nazhari 1*.
Alex Winarno2 renatanabilah31@gmail.
Telkom University.
Jl.
Puradinata i No.
Bandung Regency.
West Java.
Indonesia
Received Date
Revised Date
Accepted Date
ABSTRACT
This study aims to describe the effects of internship programs and company core values on employee performance.
The methods used were descriptive quantitative and causal methods.
The samples were collected using non-probability sampling for data saturation and the samples consisted of 50 employees.
Path analysis was used to analyze data and processed by using SmartPLS.
The study revealed that internship programs have no direct effect on employee performance, whereas if the internship program variable is bridged by the company core values variable, it will have a significant effect on improving employee performance.
From these results, the company needs to ensure that all employees and interns understand and implement the company's core values in all their work activities so that they can improve the performance provided.
Keywords Internship Programs.
Company Core Values.
Employee Performance.
InternAos Quality.
Understanding ABSTRAK Penelitian ini bertujuan untuk menjelaskan pengaruh internship program dan company core values terhadap kinerja karyawan.
Metode yang digunakan adalah metode kuantitatif deskriptif dan kausalitas.
Pengambilan sampel dilakukan dengan teknik non-probability, jenis sampling yang digunakan adalah sampel jenuh dan jumlah responden sebanyak 50 Teknik analisis data menggunakan analisis jalur yang kemudian diolah dengan SmartPLS.
Dari hasil penelitian dapat disimpulkan bahwa variabel internship program tidak berpengaruh secara langsung terhadap kinerja karyawan, sedangkan apabila variabel internship program dijembatani oleh variabel company core values maka akan memiliki pengaruh yang signifikan terhadap peningkatan kinerja karyawan.
Dari hasil tersebut sangat penting bagi perusahaan untuk memastikan agar seluruh karyawan serta peserta internship program benar-benar memahami dan menerapkan company core values dalam seluruh aktivitas pekerjaannya sehingga bisa meningkatkan kinerja yang diberikan.
Kata Kunci Program Magang.
Nilai-nilai Inti Perusahaan.
Kinerja Karyawan.
Kualitas Peserta Program Magang.
Pemahaman JURISMA : JURNAL RISET BISNIS DAN MANAJEMEN
INTRODUCTION
These days, companies are continually facing environmental changes that force them to overcome problems in changing customer needs, consolidating market positions and expanding into new market segments.
Globalization, digitization, regional shifts, economic growth, price changes and the adoption of new technology have resulted in significant changes in business competition, especially in the telecommunications industry.
Highperformance human resources are required to survive in these competitive conditions (Sari, 2016:.
HR is one of the most important elements that help the company reach its goals (Fahmi, 2016:.
Therefore, human resources must be managed properly so that its potential can be maximized and can improve performance in a company.
Companies must determine the level of performance to be achieved within a specific period.
This can be done by setting goals and standards that can measure employee performance .
According to Kasmir .
, employee performance is the result of work that has been achieved by a particular employee after completing the tasks and responsibilities given within a specific time frame.
A good company is a company that always conducts a performance appraisal.
Performance appraisal is essential for identifying how successfully the company's goals are achieved, therefore it should be conducted.
According to Fatimah .
, the primary purpose of conducting performance appraisal is to provide feedback to employees to help to improve company productivity.
PT Telkom Bandung Digital Service Division (DSD) conducts performance appraisals using the KPI (Key Performance Indicator.
KPI is a quantifiable metric that provides information on how successfully the company's goals are achieved (Soemohadiwidjojo, 2017:.
Based on Table 1.
, over the past three years, from 2016 to 2018, there has been a declining trend in the performance of PIA.
ATR.
PCL and PSC units.
The following performance data for the four work units of Telkom DSD .
Bandung can be seen in Table 1.
Table 1.
Employee Performance Value in PIA.
ATR.
PSC and PCL Work Units of Telkom DSD.
Bandung in 2016-2018 Category Total Employee Employee Employee Source: Company Internal data that has been processed by the researchers, 2019 Based on Table 1.
it can be seen that the employee's performance in PIA.
ATR.
PCL and PSC work units of Telkom DSD.
Bandung are in P1.
P2 and P3 categories.
However, the number of employees in the P3 category increases year by year, while employees in P1 and P2 categories decrease.
Based on the results of interviews that have been conducted, in carrying out its duties and functions Telkom DSD.
Bandung faced many challenges.
One of them was the number of available human resources.
HR problems faced by several work units at Telkom
DSD, namely a shortage of human resources in several work units since its inception, a lack
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of human resources due to many employees entering retirement age and a lack of knowledge and skills of human resources related to new technologies.
Figure 1.
shows a comparison of the number of retirees and new employees in Telkom DSD.
Bandung over the past four years from 2016 to 2019:
Pensiun Retirees New Employees Masuk Source: Data processed by the authors, 2019 Figure 1.
The Number of Retirees and New Employees in Telkom DSD.
Bandung in Based on Figure 1.
, it can be seen that there is an increase in the number of retired employees every year.
In 2016 and 2017 there were 5 retirees and 3 new employees.
2018 the number of employees doubled to 10 people, while there were only 5 new Furthermore, in 2019 the number of retirees increased from 10 to 14 people and there were only 10 new employees.
The number of new employees is certainly not proportional to the number of retirees and this caused a shortage of human resources in several work units of Telkom DSD.
Bandung.
According to the information provided, the recruitment process in Telkom takes quite a long time and requires a large number of resources and high costs.
Telkom DSD Bandung made several solutions for overcoming the problems that might occur, one of which was to partner with several universities to provide an internship program.
Currently, the internship program is a priority for Telkom DSD .
Bandung as a solution to meet the needs of employees because it is considered more effective and efficient.
Internship programs were carried out in several work units of Telkom DSD.
Bandung including PIA.
ATR.
PCL and PSC work units.
The internship program was carr ied out in the four work units because they experienced a shortage of human resources, a lack of jobspecific knowledge and skills and had challenging work targets.
Conducting this internship program, can help to fill the shortage of human resources in the company.
According to a survey conducted, the internship program is very helpful in overcoming a lack of specific resources and knowledge in the four units so that the work targets set by the company can be achieved.
However, it is considered that the participants in the internship program have not been able to provide all of their abilities to perform the responsibilities given by the company.
According to the research conducted by Isnada .
and Otwori and Juma .
, company core values have a positive and significant effect on employee Meanwhile, according to the research conducted by Ernanto.
Baga and Sunarti .
compatibility of organizational members with company core values can improve performance.
In addition, the implementation of company core values will JURISMA : JURNAL RISET BISNIS DAN MANAJEMEN increase the company's success in encouraging employee motivation and performance.
Furthermore, according to Milyane.
Syarah and Ayu .
, employees' understanding of the company's core values plays a significant role in driving organizational innovation and contributing to better company performance.
Based on the research conducted by Yeswa et.
, the internship program has a direct effect on job performance in Public Health Care Facilities in Kenya.
Yeswa et.
2: .
also revealed that holding an internship program can support employees in carrying out their duties and alleviate the current workload.
Based on the research conducted by Gault.
Leach and Duey .
, the study shows that high intern performance results in an enhanced employerAaperceived value of the internship program.
Al-Aufa .
8:1.
states that interns from the hospital administration program and vocational program at, the University of Indonesia have good skills in their job performance and give help to company staff.
According to Susanti et.
, it is found the Internship Program greatly affects the performance of the Universitas 17 Agustus 1945 Surabaya significantly with an impact effect of 75.
Kaswan and Akhyadi .
5: .
state that internship programs are professional learning activities for a more experienced employee.
According to Kaswan and Akhyadi .
, internship programs are systems designed to prepare young people to become trained employees.
Odon and Dun in Otwori and Juma .
state that company core values play a significant role in the success of a company.
According to Lunden and Utberg .
company core values are root values which form the basis of the organization and represent a companyAos heart.
Company core values are also interpreted as how a company will operate.
The company's core values function as a social glue that binds all employees with shared beliefs and values which positively contribute to the improvement of employee performance (Otwori and Juma, 2017:.
According to Lunden and Utberg .
, company core values exist to be shared and believed, affect everyday behaviour at work, and to be integrated into all decisions, processes and business strategies.
Meanwhile, the results of research conducted by Lestari et.
, the results show that the effectiveness of the core values of AKHLAK has a significant effect on employee performance at BSI in Bandung, it can be said that the better core values of AKHLAK as the basic values implemented by employees in their daily work results in better employee performance at BSI in the city of Bandung even showed an increase in performance.
According to Lunden and Utberg .
, the recruitment process is a tool for implementing company core values at an early stage, by simplifying the recruiting process to find human resources that meet the demands of the future.
Furthermore.
Fitzgerald in Otwori and Juma .
states that companies that comply with and implement company core values can improve their performance if these values are shared with all employees in the company.
Based on the theoretical and conceptual frameworks that have been put forward, the following hypotheses can be developed, namely: (H .
the internship program has a significant positive effect on employee performance in the four units of Telkom DSD.
Bandung.
(H.
the internship program has a significant positive effect on company core values in the four units of Telkom DSD.
Bandung.
(H.
company core values have a significant positive effect on employee performance in the four units of Telkom DSD.
Bandung.
(H.
Internship program has a significant positive effect on employee performance in the four units of Telkom DSD.
Bandung through company core values as an intervening variable.
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RESEARCH METHOD
This paper employed a descriptive quantitative method and it is described in detail.
This study adopts a descriptive approach to help provide answers to research problems.
The study aims to investigate and explain the relationship between the internship program as an independent variable and company core values as an intervening variable towards employee performance as a dependent variable.
According to Sugiyono .
, descriptive is a method to analyze data by describing the data that has been collected specifically without making generalizations.
Meanwhile, causal research is research that aims to analyze the relationship between one variable and another (Sugiyono, 2015:.
The ordinal scale was used to collect data.
This study used two sources of data, namely secondary data and primary data.
Secondary data were obtained from literature studies, literature books, previous scientific journals and relevant internet media.
The obtained secondary data can be used to help complement the primary data.
The primary data were obtained from interviews and the questionnaires that had been distributed.
The questionnaires were filled in manually and contained some written and structured questions used to get accurate information from the respondents.
The research instrument was measured using a 5-point Likert scale ranging from strongly agree (SA) to strongly disagree (SD).
The assessment criteria consisted, 1 = strongly disagree, 2 = disagree, 3 = slightly agree, 4 = agree, 5 = strongly agree.
The samples were collected using non-probability sampling for data saturation.
The study involved 50 permanent employees working in business and technology in the four units of Telkom DSD.
Bandung.
Lunden & Utberg .
and Otwori & Juma .
Company Core Value (Z) Solid Speed Smart Source: HCM Director Regulation PT Telekom Article 6 .
Internship Program (X) Discipline Job Perfomance Adaptablity Employee Performance (Y) Yeswa, et.
Source: Ishaq .
Quality Quantity Punctuality Cost effectveness The need for supervision Source: Kaswan & Akhyadi Source: Data processed by the authors, 2019 Figure 2.
Conceptual Framework
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According to Ishaq .
in Figure 2.
, internship programs can be evaluated using several dimensions, namely discipline, job performance and adaptability.
While the company core values of the Telkom Group which can be used as a measuring tool in this study are solid, speed and smart.
Furthermore, according to Kaswan and Akhyadi .
, five dimensions can be used to measure employee performance, namely quantity, quality, punctuality, cost-effectiveness and the need for supervision.
The data collection for this study was carried out using secondary and primary data.
Path analysis was used to analyze data.
Data processing techniques and data analysis methods used were validity and reliability tests, descriptive analysis and for evaluating model using path
RESULTS AND DISCUSSION
This study aims to describe the effects of internship programs and company core values on employee performance.
This section presents the results and discussion of the Validity refers to the level of accuracy of research results.
Convergent validity refers to the degree to which the measurement used can yield similar results over repeated use and divergent validity degree to which one construction is different from one another (Ghozali and Latan, 2015:.
The results of the validity test are presented in Table 2.
Table 2.
Average Variance Extracted (AVE) Variable Internship program (X) Company core values (Z) Employee Performance (Y) AVE
0,550
0,556
0,563
Factor Loading >0,5 >0,5 >0,5 ModelAos Evaluation Valid Valid Valid Source: Data processed using SmartPLS, 2020 As shown in Table 2.
, all variables have an AVE between 0.
550 and 0.
563 which reaches a minimum acceptable level or shows all outer loading variable dimensions having an alpha coefficient value above 0.
5 (Ghozali and Latan, 2015: .
so it can be concluded that the measurement meets the criteria for convergent validity.
Furthermore.
Table 3.
used to compare the loading value on the intended construct which must be greater than the loading value on other constructs.
Table 3.
Cross loading Indicator Internship Program
0,742
0,693
0,785
0,633
0,817
0,840
0,737
0,281
0,379
0,166
0,159
0,217
Company Core Values 0,313 0,500 0,425 0,391 0,450 0,536 0,580 0,757 0,876 0,650 0,766 0,762 Employee Performance 0,345 0,362 0,087 0,119 0,138 0,380 0,228 0,087 0,083 0,056 0,164 0,046 Source: Data processed using SmartPLS, 2020
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Based on the data in Table 3.
, it can be concluded that all questionnaires or questions are valid.
Next is the reliability test.
Reliability refers to the consistency of a measure used to study a relationship between variables.
The questionnaires were designed by considering the problems that are relevant to the research objectives and theories on the It is therefore believed that the responses and results from this study are considered to be reliable.
The results of the reliability test are presented in Table 4.
Table 4.
Reliability Test
Variable Internship program (X) Company core values (Z) Employee Performance (Y) Cronbach's Alpha
0,861
0,858
Coefficien
> 0,7
> 0,7
Composite Reliability 0,894 0,880 Coefficien
> 0,6
> 0,6
0,830
> 0,7
0,864
> 0,6
ModelAos Evaluation Reliable Reliable Reliable Source: Data Processed using SmartPLS, 2020 As shown in Table 4.
, all variables have Cronbach alpha values between 0.
830 and 861 which reach the minimum acceptable level of coefficient alpha above 0.
70 (Ghozali and Latan, 2015:.
The internship program has the highest Cronbach alpha of 0.
followed by company core values as the interventing variable with a Cronbach alpha of 858 and employee performance with a Cronbach alpha of 0.
Based on the results of Table 4.
, it can be concluded that the internship program variable, company core values and employee performance have a value of more than 0.
7 which is considered goo d.
So, the results show that all variables are reliable and are considered to be reliable.
Based on the descriptive analysis, it can be concluded that the internship program variable can be considered AuGoodAy with a percentage value of 77.
Thus, it can be said that the implementation of the internship program is well implemented and is felt to be able to help employees in the four units of Telkom DSD.
Bandung in completing their current duties.
Furthermore, the company core values variable can be considered AuGoodAy with a percentage value of 75.
Thus it can be concluded that most of the employees in the four units already know, understand and apply the company's core values in all activities carried out within the company environment.
The employee performance variable is also considered "Good" with a percentage of 73.
This shows that the acquisition performance in the four units is good.
The overall construction model of the internship program variables, company core values and employee performance are then tested.
Table 5 presents the R-Squared value or the magnitude of the influence of this study:
Table 5.
R-Squared Value X towards Y X towards Z Variable Z towards Y X towards Y through Z R-squared 6,3% 27,4% 64,9% 42,2% Source: Data processed using SmartPLS, 2020 The findings are in Table 5.
show the coefficient of determination.
The R-Squared of the internship program harms employee performance by 6.
3% or it also indicates that there is no effect.
The effect of the internship program on the companyAos core value is JURISMA : JURNAL RISET BISNIS DAN MANAJEMEN 4% which is considered adequate.
The effect of the companyAos core values on employee performance is 64.
9% which is considered to have a strong effect or correlation.
The effect of the internship program on employee performance through the companyAos core values 2%, considered adequate.
Furthermore, to understand the magnitude of influence and direction in the relationship between variables, namely internship programs, company core values and employee performance, it is necessary to measure path coefficients with the help of SmartPLS.
Table 6.
presents the path coefficient results for this study:
Table 6.
Path Coefficient Variable Internship program (X) -> Employee Performance (Y) Internship program (X) -> Company core values (Z) Company core values (Z) -> Employee Performance (Y) Internship program (X) -> Employee Performance (Y) through Company core values (Z) Original Sample (O) Sample Mean (M) STDEV TStatistics PValues -0,251 -0,267 0,128 1,955 0,055 0,524 0,555 0,123 4,274 0,000 0,806 0,809 0,106 7,615 0,000 0,422 0,450 0,123 3,418 0,001 Source: Data Processed by the authors, 2020 Based on Table 6.
shows the results achieved from the path coefficient test and shows that there is a negative relationship of -0.
251 between the internship program and employee performance.
Meanwhile, the intensity program on company core values has a positive relationship with a value of 0.
Likewise, the relationship between company core values and employee performance with a path coefficient value is 0.
Finally, there is a positive relationship between the internship program and employee performa nce through company core values as an intervening variable of 0.
It is indicated that the company core values have a positive correlation with employee performance with a significance value of 0.
000, the higher the company core values, the higher the employee performance in the company.
After the magnitude of the path coefficient is calculated, the next step is to make a structural equation modelling.
Figure 3.
is a path diagram for a structural equation modelling for the study:
Employee Performance (X) Source: Data processed using SmartPLS, 2020 Figure 3.
Path Diagrams JURISMA : JURNAL RISET BISNIS DAN MANAJEMEN According to Figure 3.
and Table 6.
shown above, it can be seen that the internship program on employee performance has a value of 1.
955 < t value of 2.
011 and a significance of 0.
055 > 0.
Thus, it can be said that H0 is accepted and H1 is rejected.
This indicates that the internship program does not have a positive and significant effect on employee performance in the four units of Telkom DSD.
Bandung.
The job performance indicator at X5 (Interns contribute to providing creative ideas and maximum productivit.
has the lowest percentage.
This shows that there is still a lack of knowledge and skills of interns in the field they are studying so they have not been able to contribute new ideas and maximum performance for the company.
This statement is in line with research conducted by Raira .
The results of the study show that the internship program does not have a significant effect on employee performance.
Furthermore, the internship program variable and company core values have a value 274 > t value of 2.
011 and a significance value of 0.
000 <0.
It can be concluded that the internship program variable has a significant positive effect on the company's core This is in line with a study conducted by Lunden and Utberg .
7: .
, whose research shows that a recruitment process is a tool for implementing company core values at an early stage, by simplifying the recruiting process to find human resources that meet the demands of the future, one of which is by starting internship programs.
This process is the first step in implementing the company's core values.
Thus, if a company carries out an internship program, the implementation of company core values will be well implemented and it can be said that it has strong company core values.
Meanwhile, the effect of company core values on employee performance is 7.
t value of 2.
011 with a significance of 0.
000 <0.
Therefore, it can be said that the company's core values have a significant positive effect on employee performance in the The results of this study are in line with Isnada .
and Otwori and Juma .
whose research shows that company core values have a significant positive effect on employee performance.
Thus, the stronger the company core values are applied in the company lead to higher employee performance.
Finally, the effect of the internship program on employee performance through company core values as an intervening variable has a value of 3.
418 > t 2.
011 with a significance value of 0.
001 < 0.
Based on the existing data, it can be concluded that the internship program variable has a significant positive effect on employee performance through company core values as an intervening variable.
CONCLUSION
This study describes the issues with employee performance in the four units of Telkom DSD.
Bandung.
This is due to the lack of a workforce as well as the knowledge and skills of employees on new technologies.
This study found that outsiders did not have a significant effect on improving employee performance.
Interns still have not mastered the field they are practicing so they are considered to have contributed less to the company.
The presence of the supervisors and their willingness to provide direction will determine the success of the interns in completing their tasks.
In addition, the internsAo understanding and implementation of the internship program regarding company core values in the four work units of Telkom DSD.
Bandung is still not optimal.
Implementation of the internship program is the first step in implementing the company's core values.
As a result, companies with internship programs are considered to JURISMA : JURNAL RISET BISNIS DAN MANAJEMEN have effectively implemented their company's core values.
Studies reveal that companies that can communicate and provide a good understanding of company core values can have a positive effect on employee behaviour and can improve their performances.
Therefore, it can be concluded that the company's core values play an important role and can bridge the success of implementing an internship program to improve employee performance in a company.
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