Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi Vol.
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Economic Faculty.
Universitas Muhammadiyah Ponorogo p-ISSN 1858-165X / e-ISSN 2528-7672 Does Management Efficiency have any Influence on Job Satisfaction? Nurul Badriyah1*.
Abid Muhtarom1.
Yunni Rusmawati DJ1.
Titin1.
Mahameru Rosy Rochmatullah2.
Chabib Hasan Imam Al Farid3.
Ardyan Firdausi Mustoffa4 1,3 Faculty of Economics.
Universitas Islam Lamongan.
Veteran Street No.
Lamongan, 62211 Indonesia 2Faculty of Economic and Business.
Universitas Muhammadiyah Surakarta.
Yani Street.
Kartasura.
Sukoharjo, 57162.
Indonesia 4Facultty of Economic.
Universitas Muhammadiyah Ponorogo.
Budi Utomo Street.
Ponorogo 63471 Indonesia nurulbadriyah@unisla.
*Corresponding author
ARTICLE INFO
Article history Received 21-5-2024 Revised 21-8-2024 Accepted 27-8-2024 Keywords Management efficiency Leadership style Work environment Compensation Job satisfaction Employee performance ABSTRACT Recently, there has been a growing global need for washing services worldwide.
This surge has significantly influenced the growth of washing enterprises in all nations, including Indonesia.
Nevertheless, this nation's expansion of the laundry sector has led to fierce rivalry.
Many laundry businesses have failed to compete because they could not effectively implement efficient human resource management.
This study aims to analyze the impact of efficiency management on employee satisfaction by identifying remedies to maintain the sustainability of the laundry sector.
This study primarily examines the management of human resource efficiency, emphasizing four dimensions: leadership style, work environment, rewards, and work motivation.
This study examines the role of employee performance accomplishment as a mediator.
This study uses structural equation modeling (SEM) approaches to quantitatively test data from 135 respondents.
The results of this study suggest that the leadership style, work environment, and rewards that align with employee preferences have a substantial impact on employee job satisfaction.
It means that efficient human resource management that emphasizes these three dimensions is critical to the success of laundry businesses facing intense competition.
Theoretically, this study has successfully addressed the gap in previous studies.
Practically, this study can provide valuable information to practitioners in enhancing the competitive edge of their laundry This is an open access article under the CCAeBY-SA license.
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Introduction On a global scale, the laundry industry has experienced rapid growth, leading to intensified business competitiveness.
Participating in this competition compels laundry entrepreneurs to administer their business operations effectively, aiming to minimize the expenses imposed on customers.
In addition, numerous researchers worldwide have endeavored to discover methodologies or frameworks for enhancing operational effectiveness in the washing industry.
Waszkowski & Nowicki .
propose an advancement in the efficiency of managing laundry businesses by using a model known as the Business Process Model and Notation (BPMN).
This model is a software designed to oversee and streamline all activities related to laundry services.
According to Morgan et al.
, implementing technological advancements in management can enhance productivity and lead to cost reduction and decreased carbon emissions in the laundry industry.
Another study has demonstrated that the effectiveness of managing a laundry business is connected to using laundry materials that might reduce environmental consequences while decreasing production expenses (Martyn & Martynez, 2.
These studies suggest that laundry entrepreneurs must use management efficiency measures to sustain their firms.
However, these studies have failed to highlight how management efficiency measures might help workforce management.
Therefore, this study aims to investigate the efficacy of laundry company management in Lamongan Regency.
Indonesia, with a specific focus on employee Job satisfaction is associated with achieving employee expectations in the workplace (Nassani et al.
, 2.
his study further explains that participative leadership and work culture strongly support employee job satisfaction.
Meanwhile.
Ali & Dafous .
identified a connection between job satisfaction and employee psychometric relationships.
From an alternative standpoint.
Wong .
asserted that a work environment that emphasizes quality can enhance employee job satisfaction.
Nevertheless.
Egemen .
demonstrated that an excessive emphasis on quality in a work culture tends to augment employee workload, diminishing job satisfaction.
An excessive workload adversely influences job autonomy, leading to decreased job satisfaction (Abdulkareem et al.
, 2.
Researchers have contrasting views on the relationship between leadership patterns, organizational culture, employee quality, and work satisfaction.
Some argue that these factors positively enhance employee quality and job satisfaction.
However, others contend that quality pressure has a detrimental effect on job autonomy and job satisfaction.
This study addresses the need for investigation by examining factors associated with employee work satisfaction in laundry firms that experience high job pressure.
This study employs human resource efficiency management as a novel aspect that prior studies have not employed to evaluate employee job satisfaction.
The implementation of management efficiency in Indonesia has bolstered the expansion of the laundry industry (Asro & Istiharoh, 2.
The expansion of the laundry industry is further supported by individuals' hectic work schedules, leading to a need for more time for laundering clothes.
Nevertheless, problems in the laundry industry in Indonesia are interconnected with the efficacy of human resource management.
Indeed, many employees in the laundry industry need more remuneration, resulting in a decline in their overall prosperity (Juhelti, 2.
These two studies imply that employee job satisfaction is an essential factor for the sustainability of a laundry business.
The research inquiry pertains to whether the efficacy of management in the laundry industry contributes to employees' contentment.
This study aims to examine the influence of management efficiency on employee satisfaction to ascertain the solution to this inquiry.
Management efficiency is measured using various factors such as leadership style, work environment, compensation/income, motivation, and Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi Vol.
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performance (Purba et al.
, 2019.
Nabawi, 2019.
Ratnasari et al.
, 2020.
Lestari et al.
, 2020.
Siegel et al.
, 2022.
Zhang et al.
, 2023a.
Doantekin et al.
, 2.
Purba et al.
defined employee job satisfaction as the affective disposition of employees with positive feelings towards their job.
This attitude relates to morale, discipline, and performance in the workplace (Kulakay & Uzun, 2.
Further study indicates that job satisfaction is correlated with the extent to which employees are content with the work environment, as it effectively fulfills their expectations (Nabawi, 2.
Meanwhile, leadership style is one of the factors that influences work performance.
The leadership style is directly linked to the leader's competence in effectively managing the organization and addressing all organizational issues lawfully and ethically (Rosy Rochmatullah et al.
, 2023.
Gani .
defines leadership style as the capacity of leaders to effectively arrange and rally employees in alignment with the organization's vision.
Leadership style focuses on leaders who direct, motivate, guide, and manage the workforce (Yanthy et al.
, 2020.
Sarwar et al.
, 2.
Therefore, this study posits a relationship between leadership style and the characteristics of leaders who foster employee work satisfaction.
The second factor is a conducive workplace environment that can offer employees optimal work conditions, consequently fostering enhancements in work efficacy (Nabawi.
Monroe et al.
, 2.
Irma et al.
discovered that the work environment significantly impacts workers' performance in fulfilling their responsibilities and duties.
If a person successfully acclimates to their work environment, they will naturally be able to efficiently complete their tasks, resulting in effective use of work time and improved work Hence, the work environment significantly influences the creation and enhancement of employee work satisfaction (Zhang et al.
, 2023.
Satisfied employees tend to exhibit higher loyalty toward the organization, enabling them to fulfill their obligations and responsibilities effectively.
This study posits a strong relationship between the work environment and employee job satisfaction.
Moreover, compensation is the third-factor encompassingemployees' financial and nonfinancial contributions (Che Ahmat et al.
, 2.
If the salary provided fulfills the employee's expectations and aligns with their job responsibilities, it significantly impacts their job satisfaction (Suttikun et al.
, 2018.
Ratnasari et al.
, 2020.
Ohunakin & Olugbade, 2.
Therefore, this study asserts that compensation is a kind of remuneration or monetary reward closely linked to employee job satisfaction.
The fourth factor is motivation, which significantly influences or encourages workers to achieve organizational goals (Hendra, 2020.
Popoola & Fagbola, 2.
Motivational development is usually carried out by each company that wants high employee performance to achieve the targets set.
Previous studies revealed that motivation triggers changes in a person's self, which arise from their feelings, souls, and emotions, so they ultimately carry out personal actions with specific goals (Hayati & Caniago, 2012.
Wahyudi et al.
, 2.
Thus, this study suspects motivation is closely related to employee job satisfaction.
This study utilizes employee performance as a mediator variable to examine the relationship between the factors above and employee satisfaction.
Ratnasari et al.
demonstrated that employee performance indicates employees' competence in adhering to the established standards inside the firm.
According to Che Ahmat et al.
, employee performance refers to an employee's ability to meet job targets, work efficiently, demonstrate innovation and originality, and minimize errors.
The findings from these two studies suggest that performance targets are strongly correlated with employee job satisfaction.
This study posits that employee performance level is an intermediary between leadership style, work environment, compensation, and motivation concerning employee job satisfaction.
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The layout of the study is as follows: The second part discusses the analytical methodologies used.
The third section delineates the findings of the analysis and the following The fourth section gives the conclusions derived from the study's results.
Lastly, the final section expounds upon the implications of this study.
Literature Review and Hypothesis Efficiency of stakeholder management The stakeholder theory emphasizes the importance of organizational leadership in prioritizing fairness when managing internal stakeholders, particularly employees (Mahajan et al.
, 2.
Hence, the organization's leadership style must possess the capacity to allocate human resources fairly throughout the managerial structure.
Managerial leadership encompasses more than only the pursuit of profits for the organisation.
it also requires alignment with the proportion of benefits obtained by employees (Noor et al.
, 2.
According to Ayuningtyas & Widhianingrum .
, leadership involves influencing people to achieve specific goals in particular situations.
A leader can create a vision and promoting trust, equality, openness, and respect for employees' opinions.
This ensures that employees are consistently involved in decision-making and strive for excellence within the organization.
Effective leadership that can impartially address employees' interests significantly contributes to the attainment of organizational objectives, even if personal preferences are not favored (Jaboob et al.
, 2.
Gani .
outlines that leadership characteristics are comprised of five fundamental pillars, including:
Charismatic leadership: the ability of leaders to possess a magnetic and influential personality that is both revered and respected.
This charisma enables leaders to effectively express their vision or goals to their followers Inspirational Leadership: Leaders could elevate the morale of their followers who may be experiencing doubt or difficulty in carrying out their assigned responsibilities.
Belief: Leaders possess robust intuition and are adept at discerning and executing optimal outcomes that have good effects.
Intellectual stimulation: Leader could provide intellectual stimuli to their following.
Promote and inspire creativity among its followers, urging them to engage in innovative thinking, daring to generate ideas and use rational thought processes.
Individualized consideration: Leaders possess the ability to assume accountability for cultivating the abilities and enhancing the efficiency of their subordinates.
The five traits mentioned above indicate that fair leadership towards stakeholders include a leader's ability to effectively direct, encourage effectively, and guide personnel while managing their commitment towards accomplishing organizational goals.
Dahleez et al.
demonstrated that a leadership style with a knack for comprehending human psychology has influenced employee satisfaction.
One practical approach for bettering employee psychology is to promote employee autonomy in their work and allow them the autonomy and flexibility to be creative and innovative in fulfilling their duties and responsibilities (Zhang et al.
, 2023.
Thus, the hypothesis formulated in the present scenario is as follows.
H1: There exists a significant and positive relationship between leadership style and employee job satisfaction.
Work environment The work environment encompasses tangible and intangible factors impacting employee job satisfaction and overall work satisfaction (Kearney et al.
, 2.
The work environment Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi Vol.
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directly impacts employees' execution of their work responsibilities (Purwito et al.
, 2.
When constructing a work environment, focusing on the corporate culture is crucial, which is highly important to employee health and welfare (Hasle et al.
, 2.
This study presents empirical data on the influence of work environment stimulation on employee satisfaction, with the link being mediated by enjoyment.
Additional research indicates that the work environment, leadership style, and organizational culture have a noteworthy and meaningful impact on job satisfaction (Pawirosumarto et al.
, 2.
Meanwhile.
Schilleci .
exemplifies that workers primarily demand a work atmosphere that fosters direct engagement among employees, enabling them to collaborate as they would in an office setting.
Nevertheless, a work environment of superior quality cannot promote employee happiness if it fails to address employee demands fairly (Choi, 2.
Hence, the work environment is intricately linked to the satisfaction of the workforce's preferences and the employees' readiness and competence in executing their tasks and obligations effectively.
The proposed hypothesis to validate this conjecture is as follows.
H2: The work environment has a positive and significant relationship to employee job Compensation Compensation is the financial reward that employees receive for their work in an It can include salaries, wages, bonuses, incentives, and various allowances such as holiday pay, health benefits, and meal allowances (Morgan et al.
, 2.
Compensation is designed to enhance employee well-being by offering both monetary and non-monetary incentives that result in employee satisfaction with their job (Bustamam et al.
, 2.
Providing sufficient compensation will undoubtedly enhance employee performance (Bawono, 2.
Worker compensation is closely tied to performance and the achievement of organizational goals.
Therefore.
Therefore, companies must have a policy that enhances worker welfare through social security and health insurance (Dartanto et al.
, 2.
Furthermore, offering compensation has incentivized employees to actively participate in company activities that contribute to gaining a competitive edge (Riyanto et al.
, 2.
This study formulates the following hypothesis to confirm these theories.
H3: There is a significant and positive relationship between compensation and employee job Motivation Employee motivation is associated with the inclination of individual cells to acquire or accomplish their desires, including financial gain, job satisfaction, and the accomplishment of personal objectives (Chien et al.
, 2.
Motivation stimulates cellular growth that results from the cells' soul, emotions, and feelings.
thus, it encourages the ultimate execution of cellular actions that are driven by the desire for pleasure and the attainment of goals (Mitchell et al.
, 2020.
Van den Broeck et al.
, 2.
Motivation is defined as a determinant that stimulates enhancements in the performance of individual cells, which are associated with enhanced behavior and ultimately contribute to the sustainability of the organization and the creation of a conducive work environment (Tian et al.
, 2020.
Mahmoud et al.
, 2.
The subsequent hypothesis is derived from these theories in this investigation.
H4: Job satisfaction among employees is significantly and positively related to motivation.
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Employee Performance and Satisfaction Employee performance comprises a multitude of work-related accomplishments attained by personnel.
Employee achievement encompasses various dimensions, such as meeting objectives for task completion and demonstrating innovation and creativity (Awan et , 2020.
Qalati et al.
, 2.
The evaluation of employee performance in terms of quality and quantity is contingent upon a set of values or standards (Narayanamurthy & Tortorella, 2.
In addition to motivation (Nugroho et al.
, 2017.
Tian et al.
, 2.
, leadership patterns (Pawirosumarto et al.
, 2.
, work environment (Choi, 2.
, and compensation (Dartanto et , 2.
are all elements that contribute to employee performance.
Consequently, the performance of employees is contingent upon these four facets.
In contrast, work satisfaction is an affective state that engenders joy but detrimentally impacts one's professional endeavors.
Work morale, discipline, and productivity are all indicators of this ideology.
Job satisfaction research enables individuals to consider enhancing their overall well-being (Choi et al.
, 2020.
Davidescu et al.
, 2020.
Hamsinah et al.
, 2.
Employee work satisfaction is an affective state that contributes to their overall contentment with their work, manifesting in their work conduct and productivity.
A correlation exists between the positive psychological states experienced by employees within the workplace and the organization's performance and results (Nabawi, 2.
In another view, work stress significantly impacts job satisfaction, which can be alleviated by offering sufficient pay (Braunheim et al.
, 2.
It signifies that employee work happiness is determined by rewards that align with their task.
Based on the theoretical frameworks, one can deduce that the correlation between these four factors and employee work performance is mediated by employee performance.
Several hypotheses can be delineated aboutthis premise as follows.
H5: Employee performance mediates the relationship between leadership style and job H6: Employee performance mediates the relationship between work environment and job H7: Employee performance mediates the relationship between compensation and job H8: Employee performance mediates the relationship between motivation and job Research Method Data and Sample This study used a quantitative approach to examine the impact of leadership style, work environment, compensation, and motivation on employee job satisfaction.
The analysis is conducted in the context of laundry enterprises in Lamongan Regency.
Indonesia.
The study also investigates the role of employee performance as an intermediary in this relationship.
This study employs a primary data-gathering approach by disseminating questionnaires to respondents, specifically personnel in the washing industry.
The researchers employed a purposive approach to choose a sample of respondents according to specific criteria (Sekaran & Bougie, 2.
Two criteria are employed: firstly, laundry enterprises that have been operational for over five years, and secondly, laundry business personnel with a minimum of 5 years of work experience.
According to researchers, experienced responders are believed to possess a higher level of comprehension regarding the washing industry.
Following these criteria, this study collected 135 employees who voluntarily completed the questionnaire.
The results of selecting the sample of respondents are presented in Table 1.
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Table 1.
Respondent Classification Gender
Male
Female Age
20 - 29
30 - 39
40 - 49
50 - 55
Marital Status Single Married Experience 5 Ae 9 years 10 Ae 14 years 15 Ae 19 years Ou 20 years Company Age .
10 - 15
>15
Frequency Operational Definition and Measurement of Variables This study employs several variables to examine the influence of management efficiency strategies on employee satisfaction.
This study categorizes these variables into three distinct types: endogenous variables, exogenous variables, and mediating variables.
The employee satisfaction variable (ES) is an endogenous variable that represents the emotional attitudes of employees with a positive affinity toward their work (Nabawi, 2.
The ES measurement assesses four indicators: work passion (Y1.
, work morale (Y1.
, discipline (Y1.
, and work accomplishment (Y1.
(Monroe et al.
, 2021.
Abdullahi et al.
, 2.
Exogenous variables include leadership style (LS), work environment (WE), compensation/income (CP), and motivation (MT).
LS represents the leader's capability in managing employees and overcoming employee problems.
LS measurements refer to the study of Sarwar et al.
, which focuses on three indicators: charisma (X1.
, inspirational motivation (X1.
, and intellectual stimulation (X1.
Furthermore.
WE reflect the work facilities found in the environment around the workplace, how they work, and work safety procedures (Nabawi, 2.
WE measurements use four leading indicators, including lighting (X2.
, air temperature (X2.
, noise (X2.
, and work safety (X2.
The CP variable represents the tangible and intangible rewards employees derive from their employment (Che Ahmat et al.
, 2.
The quantification of this variable relies on monetary gains, including compensation (X3.
, bonuses (X3.
, and incentives (X3.
, as well as non-monetary benefits, namely health insurance (X3.
MT variable is a process that aims to motivate and guide people to perform their tasks in alignment with the established standards, norms, rules, and goals of the firm (Hendra, 2.
MT assessment encompasses three indicators: hard work (X4.
, level of ambition (X4.
, and perseverance at work (X4.
Moreover, this study employs performance (PF) as a mediating variable to characterize employees' proficiency in attaining the organization's job objectives (Nabawi, 2.
The PF variable is measured using four primary indicators: innovation (Z1.
, work speed (Z1.
, work accuracy (Z1.
, and teamwork (Z1.
Analysis Design This study employed path analysis utilizing structural equation modeling (SEM) to examine the relationship among variables.
This model uses the path coefficient () and probability value .
-valu.
as parameters to evaluate the relationship between variables Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi Vol.
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(Rochmatullah et al.
, 2023.
The analysis is conducted using Smart PLS 3.
0 software.
This model also includes a convergent validity test to assess the accuracy of the relationship between the indicator and its latent variable.
Figure 1 displays the fit model generated using SEM.
Figure 1.
Fit Model Source: Smart PLS Output.
Results and Discussion Convergent Validity Table 2 provides a concise overview of the outcomes from the convergent validity assessment, which utilized factor loading (FL) and average variance extracted (AVE) benchmarks (Ghozali, 2.
The convergent validity test is conducted to assess the accuracy of a construct (Sugiyono, 2.
If the FL value exceeds 0.
7 and the AVE value exceeds 0.
5, it can be concluded that there is a valid relationship between the variables.
The test results indicate that the FL values for the four indicators on the ES variable are 0.
918, 0.
915, 0.
907, while the AVE value is 0.
Meanwhile, the test results for the LS variable yielded FL values of 0.
913, 0.
921, and 0.
853 for the three indicators.
Simultaneously, the AVE value stands at 0.
These results suggest that the LS variable test model is valid.
Table 2 presents the test findings for the WE variable.
The four indicators yielded FL values of 0.
895, 0.
974, 0.
951, and 0.
the AVE value was 0.
The four CP variable indicators yielded FL values of 0.
974, 0.
964, 0.
966, and 0.
874, respectively, with an AVE value Meanwhile, the results of testing the MT variable indicate that the three variable indicators achieved FL values of 0.
913, 0.
922, and 0.
876, with an AVE value of 0.
addition, the test findings for the PF variable yielded FL values of 0.
919, 0.
939, 0.
921, and 895, and AVE values of 0.
896 for the four indicators.
In summary, the results of the convergent validity assessment presented in Table 2 indicate that all correlations between variables are deemed genuine, as evidenced by FL values exceeding 0.
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Table 2.
Convergent Validity Variable dan Indikator Factor Loading Employee satisfaction (ES) Passion (Y1.
Morale (Y1.
Discipline (Y1.
Accomplishment (Y1.
Leadership style (LS) Charisma (X1.
Inspirational motivation (X1.
Intellectual stimulation (X1.
Work Environment (WE) Lighting (X2.
Air temperature (X2.
Noise (X2.
Work safety (X2.
Compensation (CP) Compensation (X3.
Bonuses (X3.
Incentives (X3.
Health insurance (X3.
Motivation (MT) Hard work (X4.
Level of ambition (X4.
Perseverance at work (X4.
Employee Performance (PF) Innovation (Z1.
Work speed (Z1.
Work accuracy (Z1.
Teamwork (Z1.
Average Variance Extracted Conclusion Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Source: Smart PLS Output.
Analysis Results Table 3 demonstrates a strong and statistically significant positive relationship between LS and ES.
This relationship is supported by a t-statistic value of 1.
728 and a p-value of 0.
below the significance level of 0.
Table 4 demonstrates that PF influences the link between LS and ES.
This relationship yields a t-statistic value of 2.
167 and a p-value of 0.
031, which is lower than the significance level of 0.
These two findings suggest that employees' performance plays an essential part in the relationship between leadership style and job The findings derived from testing the LS variable demonstrate that employing an effective leadership style that aligns with employee expectations will enhance satisfaction among workers and improve their performance in the laundry business management process.
This discovery validates the research conducted by Prayudi .
Gani .
, and Ashfaq et al.
, which demonstrate a substantial and favorable correlation between leadership style and both staff performance and employee satisfaction.
Hence, the findings of this study have revealed that adopting a leadership style that aligns with employees' passion enhances managerial effectiveness, resulting in heightened job satisfaction and improved employee Table 3 illustrates a strong and statistically significant positive relationship between WE and ES.
This result is confirmed by a positive t-statistic value and a p-value of 0.
017, below the significance threshold 0.
Table 4 indicates a form of partial mediation in the relationship Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi Vol.
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between WE and ES, mediated explicitly by PF.
The relationship between these variables results in a t-statistic value of 2.
173 and a p-value less than the significance level of 0.
These findings confirm that a workplace that enforces standards for sufficient illumination, a wellventilated system, low noise from machinery, and adequate safety measures contributes to enhanced employee performance and heightened job satisfaction.
The test results on work environment variables indicate that a pleasant and secure work environment within the laundry industry significantly impacts the spirits and motivation of The findings are consistent with other studies that established a clear correlation between the work environment and employee job satisfaction (Lestari et al.
, 2020.
Irma et al.
Additionally, several other studies have discovered that the work environment exerts a substantial favorable impact on employee performance (Nabawi, 2019.
Sunarsi et al.
, 2020.
Monroe et al.
, 2.
Therefore, the findings of this study offer novel insights that implementing management efficiency through establishing a comfortable work environment for employees can successfully enhance business performance.
The test results presented in Table 3 indicate an apparent relationship between compensation and employee satisfaction.
The outcome is identified by a positive t-statistic value and a p-value lower than the significance level of 0.
Additional findings demonstrate a strong and statistically significant correlation between CP and PF, as evidenced by a positive t-statistic and a p-value below the threshold of 0.
These two findings suggest that there is a likelihood that employee performance has a role in determining the relationship between compensation and job satisfaction.
The findings are validated in Table 4, demonstrating that the association between CP and ES is mediated by PF, resulting in a positive t-statistic value and a p-value below the significance level of 0.
The findings reveal that sufficient compensation, bonuses, and incentives foster employee contentment, enhancing their motivation to attain the company's objectives.
The test results regarding the compensation variable suggest that the quality of relationships between laundry business owners and employees is contingent upon providing compensation that aligns with employee expectations.
The provision of pay, incentives, bonuses, and health insurance substantially influences work discipline and the attainment of company objectives.
These findings align with the research conducted by Ohunakin & Olugbade .
, demonstrating that compensation has a favorable and substantial impact on employee work performance.
In addition, the research conducted by Ratnasari et al.
, determined that the remuneration factor had a notable and favorable influence on employee performance.
Therefore, this study discovered that utilizing management efficiency through providing appropriate compensation to staff significantly enhances laundry business Table 3 indicates a statistically negligible relationship between MT and ES.
The p-value for this finding exceeds the significance level of 0.
The findings suggest that no causal relationship between motivation and job satisfaction exists.
Conversely.
Table 4 illustrates the relationship between MT and ES, which PF mediates.
This relationship is indicated by a positive t-statistic value and a p-value lower than the significance level of 0.
These findings suggest that the relationship between motivation and job satisfaction cannot be ascertained rather, it necessitates analyzingthe employee performance level.
The test results on the motivation variable suggest that implementing strategies such as promoting healthy competition, issuing authoritative directives, and consistently reinforcing work regulations has decreased employee satisfaction in the workplace.
Nevertheless, the viewpoint of each employee varies.
some employees respond positively to personal incentives, while others do not.
Hence, the degree of employee performance is an essential metric for Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi Vol.
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evaluating the effectiveness of employee motivation.
The findings align with the research conducted by Yildiz et al.
Arshadi .
Wahyudi & Tupti .
Susanto .
Purba et al.
, and Hendra .
, demonstrating that motivation has a notable and favorable influence on employee performance.
The findings of this study reveal that the implementation of management efficiency by motivating employees only sometimes yields fewer benefits for the laundry business.
Table 3.
Direct path Construct LS Ie ES LS Ie PF WE Ie ES WE Ie PF CP Ie ES CP Ie PF MT Ie ES MT Ie PF PF Ie ES Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) t-Statistics (|O/STDEV|) p-values Source: Smart PLS Output.
Table 4.
Indirect path Construct LS Ie PF Ie ES WE Ie PF Ie ES CP Ie PF Ie ES MT Ie PF Ie ES Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) t-Statistics (O/STDEV) p-values Source: Smart PLS Output.
Conclusion This study focuses on the adoption of management efficiency in laundry enterprises in Indonesia and examines its impact on employee job satisfaction.
This study examines many elements that impact the implementation of management efficiency, such as leadership style, work environment, compensation, motivation, employee performance, and employee job The results of the analysis can be categorized into four parts.
This study determines that implementing innovative leadership styles connecting with employees' passions affects job satisfaction and corporate performance.
These results prove that innovation in leadership style facilitates the implementation of management efficiency.
Second, the implementation of management efficiency is strongly supported by the business owner's ability to manage the work environment.
This study found that managing a work environment that provides comfort for employees leads to improved business Third, the company's sacrifice to increase employee compensation supports the successful implementation of management efficiency.
The results of this study show that the implementation of management efficiency through increasing adequate compensation for employees has proven to provide positive benefits for business progress.
Fourth, implementing management efficiency by providing motivation does not impact employee Also, motivation only sometimes supports business performance.
Based on these four results, this study concludes that three factors determine the success of a laundry business through the implementation of management efficiency, including aligning leadership style with employee passions, creating a friendly work environment for employees, and providing adequate compensation for employees.
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This study builds upon earlier investigations that examined the effectiveness of employment management, as explored in studies by Prayudi .
Lestari et al.
Monroe et al.
, 2021, and Ashfaq et al.
Furthermore, this study serves as a reaction to other prior studies that have explored the idea of strategic management in the context of employee performance management .
Yldz et al.
Arshadi .
Suttikun et al.
Sunarsi et al.
, 2020.
Hasanah & Harisantoso, 2020.
Ohunakin & Olugbade, 2.
This study examines the impact of applying managerial efficiency in the laundry sector in Indonesia.
It focuses on innovative leadership styles, work environment, and employee compensation as factors that might enhance employee job satisfaction, affecting employee Additional findings indicate that enhancing employee motivation to improve managerial efficiency can result in heightened employee performance.
however, this outcome is not consistently observed.
These findings offer insights to laundry business proprietors that optimizing management efficiency through staff enthusiasm yields substantial advantages for business growth.
Hence, all business entities must prioritize these four factors while implementing management efficiency to enhance corporate competitiveness.
Additionally, laundry business owners must exercise caution in fostering motivation to prevent staff from developing erroneous perceptions that may lead to a decline in performance.
Acknowledgment Thank you to all authors and anonymous reviewers who have provided valuable suggestions and input to improve the quality of this paper.
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