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EFFECT OF REWARD AND WORK ENVIRONMENT ON EMPLOYEE
PERFORMANCE THROUGH WORK SATISFACTION AS A MEDIATION (STUDY
ON EMPLOYEES OF PT.
INTERNATIONAL CHEMICAL INDUSTRY)
Rina Apriyanti1.
I Ketut R Sudiarditha2.
Ari Saptono3 Student State University of Jakarta Lecture State University of Jakarta ARTICLE INFORMATION Abstract: As a provider of battery products under the ABC brand name.
PT International Chemical Industry always strives Received: 25 December 2021 to improve the performance of its employees in order to Revised: 10 January 2021 maintain existing market share.
However, the problem faced in Issued: 21 January 2021 this study is about the quality of employee performance during the 2015-2019 period, during which the employee's performance Corresponding author: First did not comply with the standards set by the company and Author inconsistencies occurred which resulted in not achieving the company's production targets, even though the company had E-mail:
completed policies regarding company performance standards.
rina88@gmail.
This study aims to examine and analyze the effect of reward, and work environment, on employee performance through job This research is quantitative in nature using multivariate analysis with SEM LISREL tools.
Withdrawal of population using census techniques, the sample of respondents is permanent employees totaling 420.
The results of this study indicate a positive and significant effect of reward on job satisfaction, a positive and significant effect of the work environment on job satisfaction, a positive and significant effect of reward on job satisfaction.
Employee job satisfaction, there is DOI: 10.
38035/DIJEFA
a positive and significant influence of the work environment on employee performance, there is a positive and significant influence of job satisfaction variables on employee 2,.
Keywords:
Reward, satisfaction,Performance Work
Job
INTRODUCTION
This research was conducted on employees of PT.
International Chemical Industri, which includes seven departments with middle to lower management levels.
Based on preliminary data, the problems faced in this study are about employee performance during the 2015-2019 period, during which the performance did not comply with the standards set by the company in the form Available Online: https://dinastipub.
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of key performance indicators so that it became an obstacle for the company to meet market This can be seen from the output of the production process that uses machines and human resources from year to year, never reaching the target set by the company.
Even though the company has tried to update production equipment and conduct training for every production employee who is responsible for achieving production output.
In Figure 1.
shows a comparison of the number of production employees with existing machine capacities as well as information on key performance indicators that still do not meet PT.
International Chemical Industry.
Source: HRD Department Figure 1.
Comparison of Labor.
Production Results and Key Performance Indicator Based on Figure 1 above shows us that every year the company continues to add employees as a refresher in the production environment, but still the expected production output has not been achieved.
Even in 2019 the production output has decreased significantly in terms of labor for the production section, continues to be added to boost the performance of the production department as a whole.
This phenomenon is a reflection of the overall decline in employee performance in the production department.
The decline in the performance of production employees can also be seen in the overall KPI value of the production department.
general, the key performance of department production employees is below the company's standard KPI value, which is 100.
This phenomenon indicates that employee performance in general experiences significant problems because employee performance does not reach the standard value of 100.
The decline in employee performance in 2019 has implications for the failure to achieve the production output that has been determined by the company as recorded in and the 1.
1 chart above.
PT.
International Chemical Industry, that the company has done various ways to maximize the capabilities of its human resources, including by adding employees and increasing employee capabilities.
Both are important elements in driving the company's high performance.
This phenomenon is interesting for researchers to conduct further analysis of variables associated with decreased employee performance such as reward, work environment and employee job satisfaction with the company.
These factors, the researcher analyzes empirically on the company and produces information that all these variables have been fulfilled by the company in accordance with the applicable labor laws in Indonesia so that the researcher wants Available Online: https://dinastipub.
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to look deeper into this phenomenon by conducting special research on the factors of decreasing employees, rewards, work environment and employee job satisfaction.
LITERATURE REVIEW
Performance Performance is defined as the value of a set of employee behaviors that contribute, either positively or negatively to the fulfillment of organizational goals (Colquitt.
LePine and Wesson, 2009: .
According to Armstrong and Baron .
, performance is the result of work that has a strong relationship with organizational strategy goals, customer satisfaction, and contributes to the economy.
Thus performance is about doing the job and the results achieved from that job.
Performance is about what to do and how to do it.
Performance can be viewed as a process or a work result.
Performance is a process of how work takes place to achieve work results (Wibowo, 2016: .
, while in the Big Indonesian Dictionary it says that performance is .
something achieved, .
demonstrated achievement, .
work ability.
Performance is a result achieved by employees, both negative and positive results against the targets set by the company (Noe, 2.
Performance is also referred to as a track record of the results of achieving activities for a certain period effectively and efficiently.
The good and bad of a performance can be seen from the responsibility of each individual employee itself.
Performance is the work result of each individual employee both in quality and quantity in carrying out their duties in accordance with the responsibilities assigned by the company to them (Mangkunegara, 2.
Performance is the work achieved by a person during a certain period and according to the rules that apply to the job concerned.
According to Mathis & Jackson .
, factors that can affect individual employee performance are: .
Ability, namely the ability factor consists of two characters, namely the ability of employees based on IQ and the ability of employees based on reality .
Motivation, namely the motivation factor one of the important factors after the ability factor.
Motivational factors can encourage individuals to do the desired job in accordance with the inspiration that the individual gets.
Motivation can provide energy to individuals to move and do a job and can be directed as an encouragement for individuals to do a job that is desired in accordance with individual aspirations or desires.
Support received, namely the support factor from the company received by employees can increase employee confidence in doing their job.
Both moral support and material support can both foster motivation and performance in individual employees.
The existence of the work carried out, namely the existence of a job that matches the employee's expertise, which will improve the employee's performance.
The existence of a job that matches the skills and skills of the employee can have an impact on the individual employee's perception that the job is fun and satisfying.
the relationship with the organization where the fair relationship between subordinates and superiors is a factor that can improve employee performance.
Employees feel recognized for their existence and encourage a sense of responsibility for their work.
In addition, there are three factors that affect employee or employee performance.
Performance can be shaped by five dimensions and ten indicators.
The five and ten indicators of performance as stated by Mangkunegara .
are the quantity of work, the quality of the results, cooperation, responsibility and initiative.
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On the explanations of the experts above, it can be synthesized that performance is the work of individual employees in a certain period according to the measurement.
which applies to the work assigned to individual employees both in quality and quantity of work.
Job Satisfaction Each employee will have a different perception of job satisfaction depending on the situation, conditions, rewards obtained, and regulations issued by the company.
Satisfaction is closely related to employee behavior in the work environment.
Robbins and Timothy .
define job satisfaction as a general attitude towards one's job as a differentiator between the amount of reward received by workers and the belief that the amount of reward that should be Job satisfaction is one of the elements that every individual employee must have.
The level of job satisfaction felt by employees will vary from one another due to differences in employee characteristics.
The difference in the perception of job satisfaction has an impact on the high and low level of satisfaction felt by each employee.
Meanwhile, according to Laywar (Robbins, 2.
, the measure of job satisfaction is a fact that occurs in employees with the perception that everything they receive and get is the result of business compensation and labor issued by employees.
Basically, job satisfaction is influenced by the conformity between the desires of the employee and the reality that the employee receives.
If his desire is in accordance with what he hopes for then his satisfaction has been achieved.
Job satisfaction is the feeling of liking or disliking employees towards their work, which is influenced by factors of the work environment and reflects the mentality of the employees themselves (Priansa, 2.
Mangkunegara, .
describes that there are two factors that can affect employee job satisfaction, namely .
employee factors where this factor is closely related to each employee's IQ, special skills, age, gender, physical condition, education level, experience, length of work , personality, emotions, way of thinking, perception and mental work.
job factor, this factor is seen by the level of weight and lightness of a job that the company gives to employees.
This level of work is influenced by several elements such as the type of work, organizational structure, rank .
, position, quality, supervision, financial security, promotion opportunities, social interactions and work relationships between colleagues, between superiors and subordinates and between employees and management.
From the description of the experts above, job satisfaction can be synthesized as a general attitude towards one's job as a differentiator between the amount of reward received by workers and the belief that the amount of reward that should be received.
The level of job satisfaction felt by employees will vary from one another due to differences in employee characteristics.
The difference in the perception of job satisfaction has an impact on the high and low level of satisfaction felt by each employee.
Satisfaction can be measured by the dimensions of salary, job itself, promotion, supervision and co-workers, while the satisfaction dimension will be measured again by indicators such as challenging work, supportive working conditions, decent wages and wages, personal suitability with work and supportive colleagues.
Reward Reward or reward is everything that employees receive from the company in return for a given job (Kadarisman, 2.
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by employees (Fahmi, 2.
Matteson (Koencoro, 2.
divides two categories of rewards, namely extrinsic reward and intrinsic reward.
Extrinsic reward is a financial award in the form of salary, allowance and bonus / incentive and non-financial interpersonal and promotional awards.
Meanwhile, intrinsic reward is an award which is regulated by yourself which consists of completion, achievement, and autonomy.
There are four reward factors as a basis for consideration that companies need to pay attention to.
The four factors are Internal Consistency.
External Competitiveness.
Employee Contributions.
Administrations and internal consistency (Nawawi, 2.
According to Byars and Rue .
rewards are built by several dimensions and several indicators such as the intrinsic dimension with indicators of achievement, feeling of accomplishment, informal recognition, job satisfaction, personal growth, and status.
Extrinsic dimensions such as formal recognition, salary, fringe benefits, incentive payments, work environment, promotion and social relationship.
From the description of the experts above, the reward is synthesized as everything that employees receive from companies, both in financial and non-financial forms as remuneration for the completion of work done by employees.
Rewards can be measured by salary, wages, incentives, benefits, rewards, interpersonal and promotion.
Work Environment One of the factors that can affect both job satisfaction and work performance is the work A comfortable and safe work environment is an absolute requirement for workers to do their job.
An uncomfortable and safe work environment for workers will have an impact on the mental or behavior of workers so that job satisfaction and employee performance will Specifically, the work environment has two conditions, namely the physical and nonphysical environment, both of which have a direct effect on worker satisfaction and work Sondang and Siagian .
, define the work environment as an environment where workers do their daily work.
Meanwhile, according to Afandi .
the work environment is everything that is in the environment of the workers that can directly affect the workers themselves in carrying out the duties assigned by the company.
The work environment is a place in which there is a group with several supporting facilities to achieve company goals in accordance with the vision and mission set by the company (Sedarmayanti, 2.
Sondang and Siagian .
divide the work environment into two types of environment, namely .
Physical work environment such as workplace buildings, availability of adequate work equipment, availability of adequate rest areas, availability of places of worship, availability of public transportation.
Non-physical work environment Non-physical work environment is an environment where employees interact with each other and there are social relationships among workers.
A good non-physical work environment is an environment where the relationship between workers and the relationship between superiors and subordinates is wellestablished, harmonious so that it has an impact on job satisfaction and employee performance.
According to Siagian .
, the establishment of a harmonious work relationship, both the relationship between colleagues at the same level, the relationship between superiors and subordinates and the establishment of cooperation between employees can improve the performance of each individual employee.
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work environment as stated by Siagian .
are peer-to-peer relationships, superior relations with employees, relationships with colleagues, cooperation between employees.
From the description of the experts above, it can be synthesized that the work environment is an environment where workers do their daily work.
Everything that is in the environment of the workers that can directly affect the workers themselves in carrying out the duties assigned by the company.
A place in which there is a group with several supporting facilities to achieve company goals in accordance with the vision and mission set by the The work environment can be measured by the dimensions of the physical work environment, non-physical work environment and psychological work environment, while the dimensions of the physical work environment will be measured again by indicators such as building workplaces, work equipment, work facilities.
Non-physical dimensions will be measured by indicators of equal level work relationships, superior and subordinate relationships, cooperation between employees.
And the psychological dimension is measured by indicators of boredom, monotonous work, and fatigue.
Conceptual Framework Effect of reward (X.
and job satisfaction (Z) Both theoretically and empirically there is a causal relationship between reward (X.
and job satisfaction (Z).
This influence is built by each dimension of the latent variable.
Such as the latent variable reward is built by the dimensions of salary, wages, incentives, and allowances.
Likewise, the satisfaction variable is built by the dimensions of salary, promotion, supervision, and co-workers.
According to Nawawi .
Bejo .
Kadarisman .
, and Irham Fahmi .
, and Byars and Rue .
that reward is one of the factors that can affect employee job satisfaction.
Research conducted by Mukhoyyaroh .
, found that reward has a significant effect on job satisfaction.
The implementation of a good reward system in a company will be well perceived by employees so that employee satisfaction will increase.
Meanwhile, research conducted by Harkat .
resulted in an analysis of the effect of reward on employee job satisfaction as well.
Harkat .
stated that the same research analysis states that reward has a significant effect on employee job satisfaction.
This is based on the results of the analysis of the effect of two dimensions of reward, namely intrinsic reward and extrinsic reward.
Galanou.
, found other facts in his research that reward is indeed an important element to increase employee job satisfaction, but not all levels of employees have the same perception.
Vincent.
in conducting his research on the effect of reward and job satisfaction, which focuses on analyzing the effect of intrinsic reward and extrinsic reward and fringe benefits on employee job satisfaction by measuring the level of employee satisfaction using job security, employee turnover rate, employee morale, organizational citizenship, organizational justice and employee Widodo .
in his research describes that there is a positive and significant effect of reward on employee job satisfaction.
From some of the opinions of experts and the results of the analysis of previous researchers, it can be assumed that reward has a positive effect on employee job satisfaction where the relationship between reward and satisfaction is built by the dimensions of reward such as intrinsic reward and extrinsic reward with satisfaction dimensions such as salary, promotion, supervision, coworkers.
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as bonuses, overtime pay, incentives, food and transportation allowances, and extrinsic rewards are measured by health coverage, maternity costs, leave pay, insurance coverage, house maintenance costs, telephone credit recharging, rewards.
If both intrinsic and extrinsic rewards are perceived by employees well, then employee job satisfaction will be achieved.
Effect of Work Environment (X.
and Job Satisfaction (Z) The effect of work environment (X.
on job satisfaction (Z) has been widely studied by previous researchers.
Although the measurement system such as the dimensions and indicators used is different, all previous researchers agree that there is a significant effect of the work environment (X.
on job satisfaction (Z).
As described by Apandi .
Siagian .
Robbins and Timothy .
, and (Priansa, 2014: .
that the work environment can affect employee job satisfaction where the relationship between work environment and employee job satisfaction is built by environmental dimensions.
physical work and non-physical work environment, while satisfaction is built by the dimensions of salary, promotion, supervision, and co-workers.
Research conducted by Hahn.
states that the work environment has a positive and significant effect on job satisfaction.
Hahn.
E .
in his research examines three variables that form his frame of mind, namely environmental as an independent variable, job satisfaction as a mediator variable and beyond personality as the dependent variable.
Hahn.
states that environmental factors can have a negative impact on satisfaction if the management of environmental factors is not managed properly.
Environmental factors can also have an impact on employee performance.
Research conducted by Dirk.
on the results of his research analysis confirms that environmental factors have an effect on job satisfaction.
In his research.
Dirck.
analyzed environment variables, work balance, life and job satisfaction variables.
Warshawsky.
states that environmental factors can reduce employee turnover, the better the work environment, the better employee satisfaction, the better employee satisfaction, the longer staying in the company will be stronger.
If the physical work environment such as workplaces, equipment, facilities, and transportation accessibility is getting better, the employees will be more satisfied and the sense of responsibility for their work will also be higher.
Research conducted by Lang & Pauline .
resulted in a conclusion that rewards have a positive and significant effect on employee performance.
The same findings were also made by research conducted by Ramli AH .
Kyu and Ralph .
Ahmed Imran Kabir.
, and Bangwal .
where the results of one of the analyzes were that reward had a positive and From some of the opinions of the experts above and the results of the analysis of previous researchers, it can be assumed that the work environment affects job satisfaction through relationships between dimensions such as the dimensions of the physical work environment and the dimensions of the non-physical work environment.
The dimension of the physical work environment has four indicators, such as workplaces, work equipment, work facilities, and public Meanwhile, the non-physical dimension consists of work relations at the same level, relationships between superiors and subordinates, cooperation between employees.
If all these indicators are well perceived by employees, employee job satisfaction will be created.
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Effect of reward(X.
and employee performance (Y).
The Relationship between the latent reward variable (X.
and the employee performance latent variable (Y) is built by the dimensions and the observer variable of each variable.
According to Nawawi .
Bejo .
Kadarisman .
, and Irham Fahmi .
and Byars & Rue .
and that reward is one of the factors that can affect performance.
The effect of reward (X.
on employee performance (Y) is built by the reward dimension as measured by the observer variables such as work performance, target achievement, skills, satisfaction, initiative, attendance level, obedience.
Meanwhile, according to Robins.
Bangun .
and Matrhis RL.
JH.
Jackson .
that the relationship between reward and performance is built by dimensions such as dimensions of work quantity, dimensions of quality of results, dimensions of cooperation, dimensions of responsibility, and dimensions of initiative.
The five dimensions of performance are re-measured by indicators of each dimension of speed, ability, neatness, accuracy and work results.
Research put forward by Ashfaq.
states that a good reward system will encourage a positive effect on employees.
Where rewards must be distributed according to employee perceptions and evenly among employees without bias and favoritism that will make employees work well.
In addition to rewards, the assessment system and the level of satisfaction of the top-level management of employees must consider other key factors such as manager attitudes, work environment, and coworker behavior that will help improve employee performance and increase employee job satisfaction.
according to Winda.
, in the analysis of one of the results of his research it was revealed that although the effect of reward is significant on employee performance, it could be weak in terms of the size of the effect.
Even the nature of the effect of rewards on performance is not always positive but sometimes it is Pradorn and Winai .
argue that rewards are influenced by two types of rewards, namely financial and non-financial.
Both types can be used to motivate performance in two different groups.
Financial rewards will have a significant effect on employee performance.
According to William.
Steven, and David .
, two types of rewards, namely financial and non-financial rewards, greatly affect performance improvement.
Each group of employees has different views in determining these two rewards.
The results of his research resulted in the conclusion that the choice of each individual in viewing the company's reward program is not always in accordance with the factors that really influence motivation and performance.
Meanwhile, according to Regitha.
Willem, and Farlane .
there is a causal relationship between appreciation, motivation and employee job satisfaction which has many important meanings for the success of employee performance.
Lavena and Johannes .
, in one of their conclusions, stated that the financial reward system has a positive and significant effect on But even though this financial reward system has an effect on improving employee performance, it will be meaningless when the leadership model or leadership behavior is perceived as bad by employees.
From the descriptions of the experts above and the results of the analysis of previous researchers, it can be assumed that the effect of reward on performance is due to the relationship between dimensions influenced by two types of reward, namely financial and non-financial.
Both types can be used to motivate performance in two different groups.
Financial rewards will have a significant effect on employee performance.
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The Effect of Work Environment on Performance As described by Afandi .
Siagian .
Robbins and Timothy .
, and Priansa .
4: .
Robbins .
Bangun .
and Mathis RL.
JH .
Jackson .
states that the work environment can affect employee performance.
The influence of the work environment on employee performance is built by the relationship between the dimensions of the work environment such as the physical work environment, non-physical work environment and psychological work environment with dimensions of employee performance such as quality of work results, quantity of work results and timeliness in doing a job.
Analysis of previous researchers, as stated by Sitti.
, in a result of their analysis that there is a relationship between leadership and work environment on performance If leadership practices are good and the work environment is supportive, then performance will be good too.
But if these two factors are not good then performance will not be good either.
No matter how good the work environment is, but the practice of leadership style is not perceived as good, so the performance improvement will not be achieved.
The research conducted by Wayan.
Yurni Rahman.
, and Wiharso ES.
Anoesyirwan M.
in one of their conclusions states that the construct of the work environment has a positive direct effect but does not have a significant effect.
This result is suspected because the interaction factor of employees in their work environment does not reflect the construction of a strong and solid mindset in facing the era of digitalization technology.
This of course has an impact on the weaknesses of compromise, cooperation, teamwork, and communication between employees This condition inhibits harmony in achieving the set work targets.
From the description of the opinions of the experts and the results of the analysis of the previous researchers above, it can be assumed that the influence of the work environment (X.
on employee performance (Y) This relationship is built by three main dimensions such as physical work environment, non physical work environment and psychological work environment Physical work is perceived as good if factors such as workplaces, work equipment, work facilities, public transportation can properly support employee activities and mobility.
Likewise, the non-physical work environment is built on the relationship between the physical, non-physical and psychological dimensions of the work environment with the dimensions of employee performance such as quantity of work, quality of work and timeliness of work on a The Effect of Job Satisfaction on Performance To measure job satisfaction (Z), it can be seen whether or not employee perceptions of job satisfaction indicators such as salary, promotion, supervision, and co-workers.
Likewise with employee performance (Y), good and bad performance of an employee can be seen from indicators such as, quantity of work results, quality of work results and timeliness of work.
According to Robbins .
Mangkunegara .
Nelson .
Robbins .
Bangun .
and Mathis RL.
JH.
Jackson .
that job satisfaction will affect employee performance if the salary is decent, promotion opportunities For all employees, good supervision from superiors, and support from fellow colleagues can have an impact on the quality of work results, quantity of work results and timeliness of work.
If the dimensions of job satisfaction are not achieved, it will not affect changes in employee performance.
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Previous research by researchers, such as research conducted by Roberts and Meredith .
, states that the character of phubbing .
hone snubbin.
is someone's indifference in an environment because they are more focused on work rather than interacting or having conversations with people in their surroundings.
Neza.
in analyzing the results of his research concluded that job satisfaction significantly mediates the effect of change and organizational culture on staff performance.
All efforts to improve staff performance must be focused on increasing job satisfaction.
Panagiotis et.
, and Muhammad.
in their research analyzed the relationship of overwork on job satisfaction and the relationship between job satisfaction and employee performance.
The results of their research analysis concluded that overwork affects job satisfaction, and job satisfaction affects performance.
employee and employee engagement.
From the description of the experts above, it should be assumed that there is an influence of job satisfaction (Z) on employee performance (Y) through the relationship between factors of salary, promotion, supervision and co-workers with factors of quantity of work results, quality of work results and timeliness.
in process.
Based on the explanation above about the flow of thought between research variables by referring to the results of previous research and expert opinion, it can be described through a research model framework as shown in the following Figure:
Source: Processed by researchers.
Figure 2.
Concetual Framework Research Hypothesis H1: Reward has a positive and significant effect on job satisfaction H2: The work environment has a positive and significant effect on job satisfaction H3: Reward has a positive and significant effect on performance H4: The work environment has a positive and significant effect on performance H5: Job satisfaction has a positive and significant effect on performance H6: Reward (X.
has an indirect effect on performance (Y) through Job Satisfaction H7: Work Environment (X.
has an indirect effect on performance (Y) through satisfaction (Z) RESEARCH METHODOLOGY This research is a quantitative study using a survey method.
Survey research is intended to explain causal relationships or correlations, which is commonly referred to as path analysis.
The affordable population of this study are all employees of PT.
International Chemical Industri, totaling 420, covering 7 departments from middle to lower management level.
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sampling technique used was saturated sample, this technique was chosen based on the consideration that the researcher would use the Lisrel data analysis technique which required a large number of research samples.
The data analysis technique used in this study is to use SEM .
tructural equation modelin.
RESULT AND DISCUSSION
2nd CFA Source: Processed by researchers.
Figure 3.
Path Diagram BASIC MODEL-STANDARDIZE SOLUTION After conducting path testing in the first stage and producing several paths with a loading factor value of less than 0.
5 and a research model that was not ideal, the researchers carried out the second stage path test or confirmatory factor by dropping the loading factor value of less than 5 step by step.
The model variables that the researcher modified, such as the Reward variable, namely the observer variable X115.
X116.
X117.
X118.
X119.
X120.
X121.
X122.
X123 and X124, the Work Environment variable that was modified by dropping step by step, namely the observer variable X23.
X27 .
X28.
X29.
X210.
X211.
X212.
X213.
X214.
X215.
X216, 217.
X218.
X219 and X220.
Next is the Performance variable with the modified observer variables, namely Z1.
Z2.
Z3.
Z4.
Z5.
Z6.
Z7 and Z8.
While in the variebel working environmentmodified variables that Y1 and Y7.
It can be seen in Figure 1 that the number of observer variables has been simplified as well as the standard value of loading factors and the T-value where the estimated output above looks very fit, this is because the model is simpler if we measure it before the second stage of the path test.
This can be seen from the Chi-Square statistical value which is smaller than the df value (Chi-Square / df = <.
, with P-Value = 1.
0 and RMSEA = 0.
035, the second stage test result model can be declared a fit model and can be analyzed further.
Henceforth the researcher includes a table of indicator variables which the researcher considers fit or has a loading factor value as determined in this test:
Table 1.
Fit Indicator Model
Item
The statement
EMPLOYEE PERFORMANCE (Y)
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I always finish work on time I am able to work in any condition I am able to achieve the work targets that have been determined My work is very neat In doing my job.
I always prioritize accuracy I am always satisfied with the results of my work
Y10
The results of the work that I do have never been disgusted or failed Y11 In completing work.
I am always supported by my work ideas Y12
I always work together on solving difficult work problems Y14
I always pay attention to the difficulties my coworkers experience in completing their work
Y15
I always try to solve problems work without waiting for orders from superiors Y16 In urgent matters.
I always make decisions without waiting for directions from my boss to finish work properly JOB SATISFACTION
The company provides opportunities for every employee to excel
Z10
Career advancement is very open to anyone Z11
I am very satisfied with the benefits provided by the company Z12
My boss always provides technical guidance in every job
Z13
My boss always gave me directions whenever I was having trouble Z14
My boss always supports my ideas in completing a job
Z15
The supervision carried out by my supervisor was very satisfying Z16
I am very satisfied with the careful supervision my supervisor has put in place
Z17
I am very satisfied with my co-workers for providing direct assistance in an effort to get work
done on time
Z18
I am very satisfied because so far the teamwork has been built very well
Z19
I take great pride in the social environment in a well-developed job
Z20
I am very satisfied with the closeness of both colleagues and between women and superiors that have been built in the company so far
REWARD
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X11
I am very accomplished X12
I always achieve the job targets that are my job and responsibility X13
I am very happy that every idea I have is always accommodated by the company X14
I feel proud to be part of the big family of the company X15
I really like the job assigned by the company X16
I really like all the management systems implemented by the company X17
I am always given the opportunity to develop myself
X18
The company provides opportunities for each individual employee to develop themselves so that the company's vision and mission are achieved X19
My Satatus as a worker in the company was noticed by the company X10
All regulations issued by the company strengthen my position as an employee of the X111
I am very happy with the formal recognition by the company X112
Formal acknowledgment of employees fosters my trust in the company X113
The salary provided by the company is in accordance with labor regulations X114
The salary I received exceeds the amount determined by the Ministry of Manpower X115
I get wife and child support
X116
The company provides health allowances for each employee and their family WORK ENVIRONMENT
X21
Workplace building Very spacious
X22
The workplace buildings are very clean, tidy and attractive X23
Work equipment is very adequate in helping smooth work
X24
Work equipment is very modern and easy to use X25
The company provides a pick-up vehicle to make it easier for employees to get to work
X26
The company has provided transportation facilities easily and cheaply X216 The company has designed the SOP in such a way as to avoid boredom at work Available Online: https://dinastipub.
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Table 2.
Goodness of Fit Statistics Source: Processed by researchers.
Based on the results of the analysis above, the fact that the GOF estimation results as a whole measurement can be concluded that the model is fit.
Of the 16 items measuring Goodness of Fit in this study, all measurements support this model, so the researcher considers that this model is acceptable in terms of model fit or Goodness of Fit.
This means that the sample covariance matrix is not much different from the estimated covariance matrix.
Hypothesis Test If the t-value in the structural equation model results is greater than 1.
96, then there is a significant influence between the variables.
Meanwhile, if the t-value is less than 1.
96, then the influence between variables is not significant Source: Processed by researchers.
Figure 4.
Hypothesis testing .
-Value Basic Mode.
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Table.
Direct Effect(DCE) And Indirect Effect(ICE) ICE t-count t-count T-kritis Conclusion Signifikan Signifikan Signifikan X2IeZ X1IeY X2IeY ZIeY Source: Processed by researchers.
Based on the results of the structural equation model above, all relationships between variables have a t-value greater than 1.
96 or -1.
This means that there is a significant influence between variables.
Hypothesis testing is done by looking at the standardized total effects value on the structural equation model.
Then it can be seen the results of the hypothesis test as follows:
Coefficient of direct effect of reward (X.
on employee job satisfaction (Z) CA positive of 26, t-value of 9.
Because the value of T> 1.
96, it can be concluded that the reward coefficient (X.
has a positive and significant direct effect on employee job satisfaction (Z).
The effect of reward on job satisfaction together with the work environment (X.
has a significant coefficient of determination (RA) of 42%.
Thus it can be said that the relationship equation can be said to be explained by the two variables by 42% in this research model.
the basis of this analysis, it can be concluded that the hypothesis which states "There is a positive and significant effect of reward (X.
on employee job satisfaction (Z)", can be The coefficient of direct work environment influence (X.
on employee job satisfaction (Z) CC is positive 0.
23, while the t-value is 4.
Because the t-value> 1.
96, it can be concluded that the work environment (X.
has a direct effect on employee job satisfaction (Z) positively and significantly.
The influence of work environment (X.
on job satisfaction (Z) together with reward (X.
has a significant coefficient of determination (R.
of 42%.
Thus it can be said that the relationship equation can be explained by the two variables by 42% in this research model.
On the basis of this analysis, it can be concluded that the hypothesis which states "There is a positive and significant influence of the work environment (X.
on employee job satisfaction (Z)", can be accepted.
The coefficient of direct reward effect (X.
on employee performance (Y) CE is 0.
51, the calculated t-value is 6.
Because the calculated t-value> 1.
96 table, it can be concluded that the reward coefficient (X.
has a direct effect on employee performance (X.
significantly with the coefficient of determination RA of 37%.
Thus it can be interpreted that the effect of reward (X.
on employee performance (Y) can only be explained about 42% by the reward factor (X.
, work environment (X.
and employee satisfaction (Z) in this model.
On the basis of this analysis, it can be concluded that reward (X.
, work environment (X.
and job satisfaction can affect employee performance (Y) of PT.
International Chemical Industry by The hypothesis which states "that there is a positive and significant effect of reward (X.
on employee performance (Y)", can be accepted.
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Direct effect of work environment (X.
) on employee performance (Y) CE of 0.
T value of Because the calculated t-value> 1.
96 table, it can be concluded that the reward coefficient (X.
has a direct effect on employee performance (Y) significantly with the coefficient of determination RA of 37%.
Thus it can be interpreted that the effect of reward (X.
and work environment (X.
on employee performance (Y) can only be explained about 37% by the reward factor (X.
, work environment (X.
, and job satisfaction in this model.
the basis of this analysis, it can be concluded that reward (X.
and work environment (X.
can affect the performance of employees (Y) of PT.
International Chemical Industry by 32%.
The hypothesis which states ", that there is a positive and significant influence on the work environment (X.
on employee performance (Y)", can be accepted.
The direct effect of job satisfaction (Z) on employee performance (Y) CE is 0.
12, the T value Because the calculated t-value> 1.
96 table, it can be concluded that the coefficient of job satisfaction (Z) has a direct effect on employee performance (Y) significantly with the coefficient of determination RA of 37%.
Thus it can be interpreted that the effect of job satisfaction (X.
, reward (X.
and work environment (X.
on employee performance (Y) can only be explained about 37% by the reward factor (X.
, work environment (X.
and work (Z) on this model.
On the basis of this analysis, it can be concluded that reward (X.
, work environment (X.
and job satisfaction can affect employee performance (Y) PT.
International Chemical Industry by 37%.
The hypothesis which states ", that there is a positive and significant effect of job satisfaction (Z) on employee performance (Y)", can be The indirect effect of reward (X.
on employee performance (Y) through job satisfaction is 08, the T value is 1.
Because the calculated t-value> 1.
96 table, it can be concluded that the reward coefficient (X.
has an indirect effect on employee performance (Y) through job satisfaction significantly with the coefficient of determination RA of 37%.
Thus it can be interpreted that the effect of job satisfaction (X.
, reward (X.
and work environment (X.
on employee performance (Y) can only be explained about 37% by the reward factor (X.
, work environment (X.
and satisfaction.
work (Z) on this model.
On the basis of this analysis, it can be concluded that reward (X.
, work environment (X.
and job satisfaction can affect employee performance (Y) PT.
International Chemical Industry by 37%.
The hypothesis which states ", that there is a positive and significant effect of reward (X.
on employee performance (Y) through job satisfaction (Z)", can be accepted.
The indirect effect of work environment (X.
on employee performance (Y) through job satisfaction is 0.
03, the T value is 1.
Because the calculated t-value> 1.
96 table, it can be concluded that the coefficient of work environment (X.
has an indirect effect on employee performance (Y) through job satisfaction significantly with the coefficient of determination RA of 37%.
Thus it can be interpreted that the effect of job satisfaction (X.
, reward (X.
and work environment (X.
on employee performance (Y) can only be explained about 37% by the reward factor (X.
, work environment (X.
and satisfaction.
work (Z) on this model.
the basis of this analysis, it can be concluded that reward (X.
, work environment (X.
and job satisfaction can affect employee performance (Y) PT.
International Chemical Industry by The hypothesis which states ", that there is a positive and significant influence of the work environment (X.
on employee performance (Y) through job satisfaction (Z)", can be Available Online: https://dinastipub.
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Discussion .
There is a positive and significant effect of Reward on Job Satisfaction of employees at PT.
International Chemical Industry The positive influence of the reward variable on job satisfaction is in accordance with the opinions of experts and experts as stated by Nawawi .
Bejo .
Kadarisman .
Irham Fahmi .
, and Byars & Rue .
stated that reward is one of the factors that can affect employee job satisfaction.
This is supported by the results of previous research such as those conducted by Harkat .
Galanou.
Vincent.
Widodo .
where in the previous research analysis concluded the results of research, one of which is the influence of the reward variable on job satisfaction.
The results of this study strengthen the opinions of management experts and previous researchers where the test results concluded that the reward variable has an effect on employee job satisfaction.
Rewards that are built by employees' perceptions, such as Intrinsic (Intrinsi.
and Extrinsic (Extrinsi.
for the Reward program held by the company.
When employees' perceptions of rewards are good, it will automatically affect employee job According to employees' perceptions, job satisfaction can be felt when employees are satisfied with the job itself, there is an open and fair promotion in the company for all employees regardless of ethnicity, race and religion where the assessment is based on the employee's achievements.
Another thing that can build job satisfaction is supervision played by their superiors and used as a role model for leadership by their subordinates as motivation to achieve good performance.
There is a positive and significant effect of the work environment on job satisfaction of employees of PT.
International Chemical Industry The results of the analysis in this study have confirmed the theory put forward by management experts as proposed by Apandi .
Siagian .
Robbins and Timothy .
, and (Priansa, 2014: .
that the work environment can affect employee job In addition to confirming the theory of experts, the results of this research analysis are supported by the results of analysis of previous studies such as those conducted by Hahn.
Dirk.
Warshawsky.
Lang & Pauline, .
Pinzone.
Ramli.
AH .
In one of the results of their research analysis, they said that the work environment has a positive and significant impact on job satisfaction.
The results of the analysis of this study indicate that there is a relationship that has a positive and significant effect on the work environment on job satisfaction.
Table 3, the results of the analysis of the indirect effect of the work environment on employee job satisfaction concludes that although the work environment has a not so strong effect on the components that make up employee job satisfaction, the effect of the work environment on employee job satisfaction is very significant.
This implies that the state of the work environment such as a workplace building, adequate work equipment, work facilities, peer-topeer relationships, relationships between superiors and employees, relationships with colleagues, cooperation between employees, boredom, monotonous work, and fatigue are the main factors significantly.
can affect employee job satisfaction.
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There is a positive and significant effect of Reward on Employee Performance of PT.
International Chemical Industry The results of the analysis in this study prove that there is a significant and positive effect of rewards on employee performance through reward components that can build employee The influence of rewards on employee performance in this study confirms the theory put forward by management experts as proposed by Nawawi .
Bejo .
Kadarisman .
Irham Fahmi .
and Byars & Rue .
Robbins .
Bangun .
and Mathis RL.
JH.
Jackson .
, that reward is one of the factors that can affect employee performance.
As the opinion of these research experts also confirms previous researchers such as Ashfaq.
Winda.
Pradorn and Winai .
William.
Steven, and David .
Regitha.
Willem, and Farlane .
Lavena and Johannes .
In one of the conclusions of their research analysis found that rewards can have a positive and significant effect on employee performance.
Referring to the results of this study which are described in table.
3 Direct causal effect, table 3 indirect causal effect (ICE) ,.
The significance of the total effect or total causal effect (TCE) all results in the conclusion that reward has a positive and significant effect on Rewards are built through intrinsic .
and extrinsic .
The existence of a good perception of employees towards intrinsic .
and extrinsic .
can be seen from the results of the process output, namely an improvement in the quantity and quality of employee work, a good relationship between employees and a sense of responsibility towards the work entrusted to them.
There is a positive and significant effect of the work environment on the performance of employees of PT.
International Chemical Industry The results of the analysis in this study concluded that the work environment has a positive effect on performance.
We can see this from the results of research tests which are described in Table 3, the direct and indirect causal effect (ICE), the significance of the total or total causal effect (TCE).
From the data contained in the table above, it can be concluded that the work environment has a positive and significant effect on employee performance.
The influence of the work environment on employee performance is built by components of the work environment such as the physical work environment of the company such as workplaces, completeness of work equipment, work facilities.
In addition to building a physical work environment, non-physical work environments such as peer-to-peer relationships, superior relations with employees, relationships with coworkers, and cooperation between employees can positively and significantly affect employee performance.
Furthermore, according to the results of this study, besides the two factors, there are also other factors that can affect employee performance from the dimensions of the work environment, namely psychological factors.
Psychological factors are psychological factors of employees in the smooth running of their jobs.
Psychological factors such as boredom at work arise due to monotonous work so that it will affect the employee's physical condition where employees will feel tired at work because the spirit of work has been infected with boredom at work.
The results of this study also confirm the opinions of management experts who are concerned about human resource management as stated by Apandi .
Siagian .
Robbins and Timothy .
, and Priansa .
4: .
Robins .
Bangun .
and Mathis RL.
JH.
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Jackson .
that the work environment can affect employee performance.
In addition to confirming the opinions of experts, the results of this study are in line with the results of the analysis of previous researchers, such as research conducted by Sitti.
Wayan.
Yurni Rahman.
Wiharso ES.
Anoesyirwan M.
Elona and Kusaku .
, where in one of the conclusions of their analysis stated that the work environment has a positive and significant effect on employee performance.
There is a positive and significant effect of job satisfaction on the performance of employees of PT.
International Chemical Industry Referring to a series of path coefficient test results and their effects in this study which are illustrated in table 3 of direct and indirect causal effects (ICE), as a whole results in the analysis that job satisfaction has a positive and significant effect on performance.
This implies that when employees feel satisfied with their work, such as the suitability of work with the skills or skills of workers, the suitability of job responsibilities with salaries and incentives for workers, giving employees freedom in creativity to support the smooth running of their work, is the main base for employee satisfaction.
at work.
In addition to these factors, there are other factors that the company needs to pay attention to on other components that can improve employee performance.
According to employees' perceptions, that is the opportunity for employees to improve their career in the company or the opportunity to be promoted fairly.
This is according to employee perceptions that open opportunities from the company regarding career advancement that are run fairly and based on measurable work performance are things that can increase employee motivation to improve employee performance at the company.
The results of the analysis of this study are in line with the opinions of management experts who are concerned about human resource development as stated by Robbins .
Mangkunegara .
Nelson .
Robins .
Bangun .
and Mathis RL.
JH.
Jackson .
states that job satisfaction will affect employee performance if the salary is decent, promotion opportunities for all employees.
Apart from being in line with the opinions of experts, the results of this research analysis also confirm the results of the analysis of previous researchers such as research conducted by Roberts and Meredith .
Neza.
Panagiotis et.
Muhammad.
where in one of the conclusions of the research analysis said that job satisfaction has a positive effect on employee performance.
There is an indirect effect of reward on the performance of employees of PT.
International Chemical Industri through job satisfaction.
The results of the analysis of this study are a novelty .
ew discover.
in research conducted by researchers because of a series of literature studies that researchers conducted as the basis for this study, from about 30 literature that researchers analyze to strengthen this Previous researchers only partially analyzed the relationship of the influence of each latent variable such as the relationship between reward and job satisfaction, the relationship between work environment and job satisfaction, the relationship between reward and performance, the relationship between work environment and performance and the relationship between satisfaction and performance.
According to the results of the path coefficient test and the total effect of the reward relationship with the performance, this relationship can be mediated by the job satisfaction variable.
This implies that if the reward Available Online: https://dinastipub.
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programmed by the company is perceived by employees as a good, fair, measurable and transparent program, it will create a feeling of satisfaction with the company's performance given to its employees.
With the satisfaction caused by the Reward program, employees will be motivated to work better and increase the quantity and quality of their work so that overall company performance will increase and the company's vision and mission will be achieved.
The results of this finding are in line with the theory put forward by experts such as those put forward by Apandi .
Siagian .
Robbins and Timothy .
, and Priansa, .
There is an indirect effect of the work environment on the performance of employees of PT.
International Chemical Industry through Job satisfaction.
The results of this study in addition to confirming the H7 hypothesis as well as novelty .
ew discoverie.
from research conducted by researchers.
Considering that previous researchers only partially analyzed the influence relationship between latent variables, the researcher proposed a hypothesis for this study.
And after carrying out a series of path and influence tests, the test results confirm the hypothesis that the researcher proposes in this According to the results of the test and researcher's analysis that performance can be influenced by factors of the work environment either directly or through the mediation of other factors, namely job satisfaction factors.
This implies that the work environment can directly affect employee performance but indirectly the work environment will lead to employee job satisfaction within the company so that employee performance will also Theoretically, this is confirmed by experts such as Apandi .
Siagian .
Robbins and Timothy .
, and Priansa, .
CONSLUSSION AND SUGESTION
Conslussion The results of this study reinforce the theory that:
There is a positive and significant effect of reward on job satisfaction The existence of a positive and significant effect of the work environment on job There is a positive and significant effect of reward on performance The existence of a positive and significant effect on the work environment on performance The existence of a positive and significant effect on job satisfaction on performance There is a positive and significant indirect effect of reward on performance through job The existence of an indirect positive and significant effect on the work environment on performance through job satisfaction Suggestion The research object in this study is still very limited, only examining the population of PT.
International Chemical Industry Therefore, it is hoped that future researchers can add to the object of research, especially the population involving a larger population so that the Available Online: https://dinastipub.
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conclusions drawn in future research will be far more perfect.
Future studies can use a larger and wider number of samples, as well as add new references and research reviews so that the research results are accurate.
For further research, it is expected to be able to examine the variables that are not observed by the researcher.
Where referring to this research, the effect of reward and work environment on satisfaction can only be explained by the reward variable and the work environment around 42% and the direct effect of reward, work environment, satisfaction and the indirect effect of reward, work environment through satisfaction can only be explained by the three the remaining 37% variable so that there are about 21% is a variable that is not observed by the researcher.
REFERENCE