INFLUENCE OF ORGANIZATIONAL CLIMATE, MOTIVATION, AND JOB SATISFACTION ON EMPLOYEE PERFORMANCE
Vol.7, No.24, pp.71-94,
INFLUENCE OF ORGANIZATIONAL CLIMATE, MOTIVATION, AND JOB SATISFACTION ON EMPLOYEE PERFORMANCE
NENAH SUNARSIH* FACULTY OF ECONOMICS, UNIVERSITAS TERBUKA HELMIATIN FACULTY OF ECONOMICS, UNIVERSITAS TERBUKA
ABSTRACT This research aimed to analyze the influence of organizational climate, motivation, and job satisfaction on employee performance at Universitas Terbuka. In this study, the 120 respondents were employees at both the head and regional offices (UPBJJ-UT) in Bogor area. Data collection was conducted by disseminating questionnaires to respondents, using a stratified random probability sampling. Multiple regression analysis and Smart Partial Least Square (PLS) were employed as examination methods. Results showed that the effects of organizational climate and job satisfaction on employee performance were not significant, whereas motivation significantly influenced employee performance. However, these variables, including organizational climate, motivation, and job satisfaction simultaneously and significantly influenced employee performance. Keywords: organizational climate, motivation, job satisfaction, employee performance.
1. INTRODUCTION Human resource is one of the driving components of an organization. Therefore, human resource requires good management and development to be competitive and capable of assisting the organization in facing the competition, particularly in the era of the growing competition within the ASEAN Economic Community (AEC) or the ASEAN free market. In times of competition, the administrative and teaching staff encounters several obstacles. Some factors that may affect employee performance include organizational climate, motivation, and job satisfaction. Some issues are related to employee performance. For example, some employees are not yet ready for greater responsibilities beyond their capabilities. During work, some employees do not have success orientations and others are not target-orientated either, making them unable to complete their assigned tasks on time. As for the organizational climate, some employees are unsure of the job assigned to them and their corresponding responsibilities. In addition, the work environment is unsupportive of employees having a better performance. Another problem associated with work motivation is that employees receive inadequate benefits because directors often give biased performance appraisals that lead to demotivation among employees. Moreover, whenever employee performance declines, directors often give employees late notifications on the need for improved performance. Clearly, work motivation should through the efforts of both employees and their superiors.
Likewise, job dissatisfaction has been found apart from issues, such as employee performance, organizational climate, and work motivation. Some employees have felt dissatisfied with work because of superior inadequate rewards or praise to employees who have performed well. Alternative solutions to such problems in terms of employee performance, organizational climate, motivation, and job satisfaction need to be found. Strategies that influence employees to have good performance are also necessary. By doing so, employees will contribute fully to achieving organizational goals and objectives. Performance then becomes the responsibility of each employee who works for an organization or company. The performance also reflects the organizational ability to manage and allocate its resources. Performance reflects the level of achievement of an implemented program or policy to achieve the targets, goals, vision, and missions of an organization formulated in terms of strategic planning (Moeheriono, 2010). According to Robbins (2007), performance in practice refers to a job-related achievement. Performance or achievement is the result of both quality and quantity achieved by an employee in carrying out their duties based on the responsibilities given to them. Performance in association with functions do not stand alone but rather relates both to job satisfaction and the level of remuneration influenced by one’s skills, abilities, and characteristics. Therefore, according to the Partner-Lawyer model (Donnelly, Gibson & Invancevich 1991), individual performance is influenced essentially by many factors, such as (1) expectations for rewards; (2) motivation; (3) capability needs and characteristics; (4) perception of a given task; (5) internal and external rewards; (6) level of remuneration’s perception and job satisfaction; (7) internal and external rewards; and (8) rewards’ level of perception and job satisfaction. Employee performance is expected to improve organizational performance as a whole. Acquiring an employee’s high level of performance is necessary for achieving optimal organizational performance. The organizational climate is everything available to employees and affects the way employees carry out assigned duties. The organizational climate can affect employees in producing goods or services. Therefore, organizational climate is necessary for a good and healthy work place to enable employees to feel more comfortable in completing work assigned to them (Suranto & Lestari 2014). According to Wirawan (2008), the organizational climate is a perception of organizational members, either individually or in groups, who constantly communicate with the organization associated with anything that frequently happens within the organization. This condition affects organizational behavior and employee performance, which finally determine the performance of the organization. A good organizational climate is a prerequisite to achieving the best organizational performance. Motivation is a process that determines intensity, directions, and individual persistence in achieving goals (Robbins, 2006). Hasibuan (2006) defined motivation as something that leads, direct, and supports human behavior in working actively and enthusiastically to achieve optimal results. Ma’rifah (2006) and Listianto Setiaji (2007) revealed a positive and significant relationship between work motivation and performance. These studies determined the existence of a linear relationship between motivation and performance, which means that highly motivated employees have a higher level of performance.
2. LITERATURE REVIEW
2.1. Concept of Performance Performance is a reflection of the achievement level associated with the implementation of a program or policy to the goals, vision, and missions of an organization formulated in terms of a strategic planning (Moeheriono 2010). According to Robbins (2007), practice performance is a work-related achievement. Performance (work performance) can be defined as work results in terms of quality and quantity achieved by an employee in carrying out duties based their responsibilities. Performance is a person’s overall success rate during a certain period in a wide range of possibilities, such as work performance standards, targets or objectives, or preset criteria agreed upon collectively (Rivai & Basri 2005). Simamora (2004) stated that performance refers to the degree of task achievement covering a person’s job. Performance reflects how well employees meet the requirements of a job and is often misinterpreted as the amount of energy allocated to a task. Performance is measured based on the results. 2.2. Performance Measurement According to Gomes (2003), a performance appraisal aims to reward past performance and motivate future improvement. Information obtained from the performance appraisal can be used for salary estimates, salary increases, promotions, training, and specific tasks assigned. Bernardin and Russel (1995) proposed six primary performance types that can be used to measure performance, as follows: 1. Quality The level of a process or results of implemented activities that reach close to perfection or expected targets. 2. Quantity The number/amount of things produced, for example, a number of dollars, units, and a series of activities accomplished. 3. Timeliness Time allocated to complete a task by paying attention to other output coordination, as well as time spent accomplishing other activities. 4. Cost effectiveness
The degree of human resources, such as human, financial, technological, and material, maximized in to achieve the highest level of output, or to reduce losses from the utilization of each resource. 5. Need for supervision To prevent unnecessary actions, a worker must be able to accomplish tasks without supervision. 6. Interpersonal impact An employee must be capable of maintaining self-esteem, good name, and teamwork among colleagues and subordinates. However, according to Ma’rifah (2004), the degree of employee performance has the following factors: 1. The quality of work denoted by accuracy and tidiness, the speed of task completion, skills, and work proficiency. 2. The quantity of work assessed in term of the ability to achieve targets or work output from newly assigned tasks. 3. The knowledge that can be observed from employees’ abilities to understand tasks completion’s relevance. 4. Reliability can be assessed from abilities and reliability in completing duties, either in terms of regulatory implementation or initiatives and self-discipline. 5. Presence can be observed from the office routine activities, meetings attended, and employees’ availability for clients. 6. Cooperation is when an employee can work with others to complete a task.
2.3. Concept of Organizational Climate The initial concept of organizational climate was first proposed by Kurt Lewin in the 1930s, with the term psychological climate. Tagiuri Litwin then used the term organizational climate to explain behavior further in relation to its background. Tagiuri and Litwin (as cited in Wirawan, 2007) proposed that organizational climate is the internal environment’s quality of the organization, where employees acquire experiences that influence their behavior. This can be described in a set of characteristics or the organization’s nature. According to Wirawan (2008), organizational climate is the perception of organizational members (either individually, or in groups) who always keep in touch with the organization concerning things that exist or happen regularly within the organization. This relationship affects attitudes, organizational behavior, and performance of employees who determine organizational performance. Stringer in Ayudiarini (2010) defined the term organizational climate as a “collection and pattern of the environmental determinant of aroused motivation.” Organizational climate is a collective, and an environmental pattern determines the motivation. According to Newstrom & Davis (2006), organizational climate is a human environment where employees of an organization perform their job. Based on this definition, organizational climate affects the entire environment or hinders employees within the organization that influences how they complete organizational tasks.
2. RESEARCH METHOD:This research will review how organizational climate, motivation, and job satisfaction influence employee performance at Universitas Terbuka. Conceptually, the interrelation of the variables can be visualized as in Figure 1.
This research will attempt to decipher and explain the influence of organizational climate, motivation, and job satisfaction on employee performance. The survey method is used throughout the research. 3.2. Research Variables Endogenous Variable: employee performance. Exogenous Variable: organizational climate, motivation, and job satisfaction. 3.3. Operational Definition 1. Employee performance is defined as the work capabilities of an individual to achieve the targets that have been set (Robbins, 2007). 2. The organizational climate is environmental collection and patterns that determine the growth of motivation focused on the logical and measurable perception directly influence employee organizational performance (Wirawan, 2008). 3. Motivation is the condition embodied in an individual’s drive in executing an action to achieve a target (Hasibuan, 2006). 4. Job satisfaction is the feeling of an employee towards work (Robbins, 2006).
3.4. Data Collecting Method In this research, the type of data used was primary and secondary data. Questionnaires were disseminated at the research area to obtain primary data. Secondary data were obtained from various relevant references, such as books, journals, thesis, and internet data. All data were measured using the Likert scale with points ranging from 1-5. 3.5. Validity Test The validity test of all questions: p –value ≤ 0.05 confidence interval of 95%. These results confirm that all questions are significant and considered valid. 3.6. Reliability Test The result of the reliability test gives the Cronbach’s Alpha as 0.738, confirming that the instruments used in the research are reliable. An instrument is considered reliable when the value of alpha is larger than the critical r of product moment or specifically ≥ 0.60.
3. RESULTS AND DISCUSSION 4.1. Characteristics of Respondents Descriptive analysis was used to analyze the characteristics of the respondents. The characteristics of the respondents include gender, the level of education, age, and length of employment. Based on gender, 70 male (58%) and 50 female (42%) respondents participated in this research. Results of ANOVA test using SPSS 22.00 showed the limited difference in perception toward the four variables of the research. The four variables, namely, organization climate, motivation, job satisfaction, and job performance, are found to have a p-value larger than 0.05. Based on the level of education, the majority of the respondents, 38 people (32%) have an undergraduate education. The ANOVA test results show the limited difference in perception toward the four variables of the research. The four variables, namely, organizational climate, motivation, job satisfaction, and job performance, are proven by a p-value larger than 0.05. According to age groups, the majority of respondents are between 50 to <60 years old, exactly 44 people (37%). Statistically speaking, the age group difference of the respondents had a slight influence on perception towards the four variables of the research. The four variables, namely, organizational climate, motivation, job satisfaction and employee performance are proven to have a p-value larger than 0.05. Based on the length of employment, most respondents have been employed for ≥ 25 years, exactly 41 people (34%). Statistical check shows a difference in employee perception based on the length of employment regarding the organizational climate in UT Head office and regional office (UPBJJ-UT) Bogor area, motivation, and job satisfaction. This finding is apparent by the value of p-value >< 0.05. The employment length characteristics have a marked difference in the organizational climate in UT. Looking into the variable of motivation, a good and excellent perception was shown by respondents in the 0–5 year and 10–15 year range of employment. In other employment length characteristics group, respondents’ perception neared a good perception but bordered mostly on an average level. Similar can be said for the variable of job satisfaction. In the organizational climate variable, a similar perception has been read from the employment length groups of 0–5 years, 20–25 years and above. However, employment groups with 5–10 years and 10–15 years show excellent perceptions regarding the implementation organizational climate in UT. In respect to performance, however, no discernible difference has been observed with a p-value larger than 0.05. 4.2. Evaluation of Outer Model-Reflective from Organizational Climate Variable, Motivation, Job Satisfaction, and Employee Performance Following Ghazaly (2008), evaluation of the outer model-reflective was employed based on four criteria, namely convergent validity, discriminant validity, average variance extracted (AVE), and composite reliability. 4.2.1. Convergent Validity Convergent validity measures how the indicator strength value reflects latent variables. Chin (1998) stated that a value of < 0.50 means the indicator must be dropped. According to Ghazali (2005), indicators with a loading factor value below 0.05 indicates that the strength is very weak and must be dropped. The result of the indicator drop implies that the model must be re-evaluated with the Smart PLS to determine a new loading factor.
4. CONCLUSION Results show that organizational climate is not significant to employee performance, which is supported by results of t count 0.307 < t table 1.96, and hence, the first hypothesis is rejected. Results further indicate that motivation has a significant influence on employee performance, which is supported by t count 1.98 > t table 1.96 meaning that an increase in individual’s motivation to work also improves employee performance. Thus, the second hypothesis is accepted. The PLS analyses proved that job satisfaction had a noteworthy positive relation to employee performance. The coefficient parameter value was found at 0.2845, leading to the understanding that improved job satisfaction increased employee performance. However, t-count = 1.38 < 0.05, all variables significantly influence employee’s performance and hence the fourth hypothesis is accepted. The contribution of the variables in improving performance is found at 0.091 or 9.1%, which shows that 98.9% are influenced by other factors. Results of the study have implications for the improvement of the organizational climate, motivation, job satisfaction, and employee performance, especially at Universitas Terbuka.
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