Economics and Management

Quality Quality of Work Life, Motivation, and Employee Performance on PT. Bank BCA Branch Jember

Mahmud Fatoni, Ultafakoh Paranitha Dimulyo, Ms.,
Article Date Published : 6 June 2018 | Page No.: EM-2018-431-437 | Google Scholar

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Abstract

This study aims to determine and to analyze the direct effect of quality of work life on the work motivation, the effect of work motivation on employee performance, the effect of quality of work life on the employee performance, and the indirect effect of quality of work life on the employee performance through work motivation. The sample were 162 employees obtained by census sampling technique. The data used was primary data generated from  distribution of questionnaires. Hypotheses were tested using path analysis. The results found  that there is a significant direct and positive influence of quality of work life on work motivation, there is a significant direct and positive influence of work motivation on performance, there is a significant and positive influence on the quality of work life on performance, there is a positive and significant indirect effect of quality of work life on the employee performance but the effect is not as strong as the direct effect.This study has both theoretical and practical implications. These findings are able to reinforce previous studies on the study of quality of work life, motivation, and employee performance. In addition, this research gives input to the management of PT. Bank BCA to maintain quality of work life aspects and motivation in the business to improve the employee performance.

Introduction

Building good quality of work life for employee in organizations depends a lot on the organization's philosophy. If the employees are considered as a factor of production then the value of exploitation of employees by the company is always greater than the value of compensation and protection they receive. However, if they are considered as strategic asset or partner, then the organization will commit to treat employees through equal compensation, career guarantees, and opportunities to advance their career (Darzanti, 2004:1), because the good quality of working life will increase employee motivation to improve their performance.

Work motivation is a willingness to expend high levels of effort for organizational goals, conditioned by the ability of that effort to meet multiple individual needs (Robbins, 2003: 208). Motivation is a complex issue in the organization, because the needs and desires of each employee are different from each other. Every employee who is motivated will certainly produce optimal performance for the

company to achieve its goals.

According to Martoyo (2000: 92), performance is the demonstration of the employee's own work and the level of potential employees in an effort to develop themselves for the benefit of companies and organizations. So performance is the result or output of a process. If the output comes from the employee's work, then it is called employee performance. Simamora (2004: 409) sees employee performance as a level where employees can achieve the requirements.

Employee performance is influenced by quality of work life, quality of equipment, tools and technical factors. Quality of work life refers to the effectiveness of the work environment to meet the personal needs and values of a company's employees. Walton (in Kossen, 1993: 237) suggests eight main categories of quality of work life: compensation, feelings within a group, opportunities for human capacity, opportunities for continued growth and assurance, working conditions, employee rights, work and overall work space , and social relevance. But the influence of quality of work life on employee performance depends on the level of work motivation, because no matter how good the quality of work life is, if the employees are lacking of motivation, a good performance of work will not be achieved. This study aims to analyze the effect of quality of work life on the work motivation, the effect of work motivation on employee performance, the effect of quality of work life on employee performance, the effect of quality of work life on employee performance through motivation. The study was conducted on the employees of PT Bank Central Asia (BCA) as the largest private bank in Indonesia and one of PT Bank BCA branches is located in Jember district..

Literature Review

2.1 The Relationship between Quality of Work Life and Work Motivation

The main thing about the quality of work life is the impact it has on the individual, how the job can lead to better or not is how people can do better jobs. Another approach says that the quality of working life combines job satisfaction, motivation, and life satisfaction in general. Thus, the high quality of work life involves a positive feeling for the job and its prospects, because a motivation indicates work and a good balance between life and personal values and fulfilled its needs (Katzell, 1994).

According to Davis and Nestorm (2004), the quality of working life refers to the pleasant or not working environment for the people involved. Work environment and work should be tailored to people and technological advancement. Whether and Davis (1996) illustrate the relationship between the quality of work environment to work motivation through some HR management activities. According to him, motivating factors of work motivation and job satisfaction directly can be done on orientation, training and development activities, career planning, and counseling. This activity can help supervisors in motivating their employees.

Some previous researchers studied the relationship between quality of work life and organizational motivation. Samtica (2011) analyzed the relationship of the components of quality of work life (available facilities, workplace safety, employee engagement, balanced compensation, communication, career development, problem solving, job security and institutional pride) and work motivation then found a strong relationship. Hasmalawati and Restya (2017) also proved that quality of work life affects work motivation on the employees in Aceh Utara, Indonesia.

Hypothesis 1: High quality of work life will improve work motivation

2.2 The Relationship between Work Motivation and Employee Performance

Motivation is a complex problem in the organization, because the needs and desires of each member of the organization differ from one another. This is different because each member of an organization is unique biologically and psychologically, and develops on the basis of different learning processes (Supriyanto, 2007: 41).

Siagian (1995: 138) defines motivation as the driving force that causes an individual to be willing and willing to exert the ability to perform the activities for which he is responsible. Meanwhile, according to Pangewa (2004: 77) the motivation as one of the psychological variables of individual behavior, is one of the most difficult challenges faced by a manager in the organization, namely how he can move his employees to always willing and willing to exert their best ability for the benefit of the organization .

Muogbo (2013) conducted research on the influence of motivation on employee performance at selected companies in Anambra State. The result of his research indicated that there is a significant relationship between extrinsic motivation and worker performance, whereas between intrinsic motivation and performance have no effect. McClelland as quoted by Mangkunegara (2005), argues that there is a positive relationship between achievement motivation and achievement of work. Achievement motivation is an impulse in a person to perform an activity or task as well as possible in order to be able to achieve work performance with a commendable title. Many studies have proved that after being motivated, the performance of employees is better.

Increasing employee motivation is very meaningful for every organization, whether in government or private organizations. An employee who has high motivation in work will give the best for an organization. This is what causes motivation to make an important contribution to every organization. Prawirosentono (1999) said that performance is influenced by the motivation of employees who work in an organization. When employee motivation is low, then the work or performance is also low.

Hypothesis 2: High work motivation will improve employee performance

2.3 The Relationship between Quality of Work Life, Work Motivation, and Employee Performance

Jewell and Siegel (1998) argue that the various components of employee welfare in general are more important is a safe and healthy work environment, good relationships with supervisors, support and friendship co-workers, work that suits the needs and abilities of individuals, the degree of satisfaction with work situations and opportunities for growth and self-development if needed. The term used to describe the interaction results of individuals, occupations, global and multidimensional organizations is the quality of work life. Based on the definition outlined, it can be deduced that the quality of working life is the perception of workers about the welfare, the atmosphere and the experience of the workers in their place of work, which refers to how effectively the work environment meets the personal needs of the workers.

Prior studies found that good quality of work life can affect employee performance. Tripathy (2017) found that quality of work life affects job performance positively and significantly. High quality of work life is responsible for generating high levels of job performance. Rubel and Kee (2014) found that work life balance have positive and significant effect on job performance through job satisfaction. Narehan et al. (2014) found significant relationship between quality of work life programs and quality of life that can influence employee productivity. Srivastava and Kanpur (2014) stated that good quality of work life leads to an atmosphere of good impersonal relations and highly motivated employees who strive for their development and performance.

Hypothesis 3: High quality of work life will improve employee performance

Hypothesis 4: High quality of work life will improve employee performance through work motivation

Methodology

This study was explanatory research where we tried to explain the causal relationship and to explain the relationship between several variables through hypothesis testing both partially and simultaneously. The independent variable in this study is quality of work life, the intervening variable is work motivation, and the dependent variable is employee performance. This research used survey method where the data were collected based on respondent's answer from questionnaire submitted. The questionnaires were distributed to 162 employees of PT. Bank BCA Branch Jember. The data were analysed using path analysis. Path analysis is part of the regression analysis used to analyze the relationship between variables, where the independent variables affect the dependent variable either directly or indirectly through one or more intermediaries. Before performing path analysis, the research instruments were tested using validity and reliability test. The resulting path model was tested using classical assumption test, ie normality test, multicollinearity test, and heteroscedasticity test. The framework of path analysis is shown below.

Figure 1 :

The path analysis model used in this study can be described in the following structural equations:

Z = ?ZXX + ?1 ...(model 1)

Y = ?YXX+ ?YZZ + ?2 ..(model 2)

Result and Discussion

4.1 Results

a. Characteristics of Respondents

Characteristics of respondents describe the composition of age, sex, and latest education of the respondents. The division of its characteristics is shown on Table 1. Table 1 shows that out of 162 respondents, 71 persons or 43,8% are less than 30 years old, 7 persons or 4,3% are 31-40 years old, 48 persons or 29,6% are 41-50 years old, and 36 persons or 22,3% are more than 50 years old. These data indicate that the distribution of employees age are dominated by young people because this company needs a lot of young employees for frontliners and marketers.

Characteristics of Respondents based on Age

Age (years old) Frequency Percentage %
< 30 71 43,8
31 – 40 7 4,3
41 – 50 48 29,6
> 50 36 22,3
Total 162 100

Source: processed data, 2018

Characteristics of Respondents based on Sex

Sex Frequency Percentage%
Male 115 70,9
Female 47 29,1
Total 162 100

Source: processed data, 2018

Table 2 shows that out of 162 respondents, 46 people or 21,6% are male and 75 or 78,3% are female. The data shows that the majority of of employees in PT. Bank BCA Branch Jember are dominated by female employees.

Characteristics of Respondents based on Latest Education

Length of Work (years) Frequency Percentage %
Master 6 0,5
Bachelor 110 68,9
Diploma 10 7,5
Highschool 36 23,1
Total 162 100

Source: processed data, 2018

Table 3 shows that out of 162 respondents, 6 people or 0.5% are postgraduates or masters, 110 people or 68,9% are bachelors , 10 people or 7,5 % are diploma graduates, and 36 people or 23,1% are highschool graduates. These data showed that the majority of the employees of PT. Bank BCA Branch Jember are bachelors.

b. The Result of Path Analysis

Path analysis is done by standardized regression using SPSS 14. The result of path coefficient test of direct effect is presented in the table 4.Table 4 shows that the quality of work life dominantly influence the work motivation with direct path coefficient of 0,511 or the path of quality of work life towards work motivation is the strongest path, followed by the path from work motivation towards performance with direct path coefficient of 0,340 and the last is quality of work life towards performance with direct path coefficient of 0,326. All of the path is significant because the all of the p-value is lower than α=5%. It means that hypothesis 1, 2, and 3 are accepted.

c. Path Calculation

This section describes the comparative comparison of the direct effect of the quality of work life (X) on the performance (Y) and the indirect effect of the quality of work life (X) on performance (Y) through the intervening variable of work motivation (Z). Below is the calculation of direct and indirect effect.

  • Direct Effect

  • The effect of quality of work life (X) on work motivation (Z)

  • DEzx = X→ Z

  • DEzx = 0,511

  • The effect of work motivation (Z) on employee performance (Y)

DEyz = Z →Y

DEyz = 0,340

The effect of quality of work life (X) on employee performance (Y)

DEyx = X→ Y

DEyx = 0,326

Indirect Effect

The indirect effect test is done by looking at the test result of the paths passed, if all the paths are significant then the indirect effect is also significant and if there is at least one lane that is not significant then the indirect influence is said not significant.

The Influence of variable quality of work life (X) to performance (Y) through work motivation (Z) is calculated below:

  • IEyzx = X→ Z →Y

  • IEyzx = (0,511) (0,340)

  • = 0,173

Independent Variable Intervening Variable Dependent Variable Coefficient Conclusion
Quality of Work Life Work Motivation Employee Performance 0,173 Significant

Coefficient of Indirect Effect

Source: SPSS Output, 2018

  • Table 5 shows that the influence of quality of work (X) life on employee performance (Y) through work motivation (Z) is significant with the effect magnitude of 0,173.

4.2 Discussion

The Direct Effect of Quality of Work Life on the Work Motivation of PT. Bank BCA Branch Jember Employees

Based on the analysis, it was found that the quality of work life has a significant and positive effect on work motivation of the employees of PT. Bank BCA Branch Jember. Quality of working life comprising compensation, feelings within a group, the use of all human capacities, continuous guarantees, working conditions, employee rights, overall work space and social relevance at PT. Bank BCA Branch Jember is able to influence the employee's motivation to improve performance.

Compensation component in the form of bonus given has been adjusted with the achievements and responsibilities of each employees. Giving good compensation will be able to ensure employee satisfaction so they are motivated to improve their performance. The second component is the feeling in one group that is the help given by co-workers. This means that the motivation of PT. Bank BCA Branch Jember employees is affected by the assistance provided by job records. An employee will be motivated to work if his partner is willing to provide assistance when they are facing obstacles, given that the task they are assigned is a heavy-duty high-risk task. This result is in line with the study of Samtica (2011) and Hasmalawati and Restya (2017) who found that high quality of work life will improve the work motivation among employees.

The Direct Effect of Work Motivation on the Performance of PT. Bank BCA Branch Jember Employees

The results of this study indicate that the motivation of work determines the formation of high performance of employees of PT. Bank BCA Branch Jember. The results of this study are also supported by a study conducted by Muogba (2013) which states that the variables of work motivation significantly affect the performance, although done on different objects and respondents.

Motivation is a way used by the leadership to direct his subordinates to be willing to follow it. Motivation is the giving or inclusion of motives. With that understanding can be explained why an employee is willing to do a job on a company. Motivation is generated in various ways so that employees want to improve its performance. Among others, by providing compensation and rewards. At PT. Bank BCA Branch Jember, the employees are motivated so that they can improve their performance, this is because their heavy tasks require motivation in order to improve their performance so that service can be optimized.

The Direct Effect of Quality of Work Life on the Performance of PT. Bank BCA Branch Jember Employees

Components of the quality of working life (X) consisting of compensation, feelings within a group, the use of all human capacities, opportunities for continued growth and assurance, working conditions, employee rights, work and overall workspace and social relevance, either even all of them will affect the employees of PT. Bank BCA Branch Jember, which certainly differs from one employee to another. With employees who have a good performance then the company will be easy to achieve the goals set.

The results of this study indicate that the quality of working life is very determining the formation of high performance of employees of PT. Bank BCA Branch Jember and supported by empirical data in the form of research conducted by Tripathy (2017), Rubel and Kee (2014), Narehan et al. (2014), and Srivastava and Kanpur (2014). The results of his research stated that the quality of work life variables significantly affect the performance. Although re-examined on different objects and respondents, but on the results of research proved that the quality of work life affects the performance of employees.

d.The Indirect Effect of Quality of Work Life on Employee Performance through Work Motivation

In PT. Bank BCA Branch Jember, the employees are motivated by improving the quality of their work life so employees will improve their performance. Because someone who gets the good quality of work life, then he will be motivated to further improve performance as a form of mutual return to the company. The results of this study indicate that the quality of work life determine the formation of high performance of employees of PT. Bank BCA Branch Jember through work motivation but the magnitude of effect is not as high as direct effect.

Conclusion

Based on the results of research at PT. Bank BCA Branch Jember and the result of data analysis, hence it concluded that there is a significant direct and positive influence of quality of work life on work motivation, there is a significant direct and positive influence of work motivation on performance, there is a significant and positive influence on the quality of work life on performance, there is a positive and significant indirect effect of quality of work life on the employee performance but the effect is not as strong as the direct effect. This result might have both theoretical and practical implication. Theoretically, this paper can extend the insight and studies about the effort to boost the performance of employees especially in banking industry. Practically, the manager can adapt this study result to manager the quality of work life and the work motivation to improve employee performance and reach the company’s goal. Further research is expected to use another indicators, another analysis tool such as Structural Equation Model (SEM), and should involve wider respondents.

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Article Details


Issue: Vol. 6 No. 06 (2018)
Page No.: EM-2018-431-437
Section: Economics and Management
DOI: https://doi.org/10.18535/ijsrm/v6i6.em01

How to Cite

Fatoni, M., & Dimulyo, U. P. (2018). Quality Quality of Work Life, Motivation, and Employee Performance on PT. Bank BCA Branch Jember. International Journal of Scientific Research and Management, 6(06), EM-2018. https://doi.org/10.18535/ijsrm/v6i6.em01

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