INTERNATIONAL JOURNAL OF SOCIAL SERVICE AND RESEARCH

 

THE EFFECT OF ORGANIZATIONAL COMMITMENT AND COMPENSATION ON THE PERFORMANCE OF BPN OFFICE EMPLOYEES, WEST ACEH REGENCY

 

Wirda Fitria

Faculty of Economics and Business, Teuku Umar University, Aceh, Indonesia

Email: wirdafitria01@gmail.com

 

Abstract

This study aims to analyze the effect of organizational commitment and compensation on the performance of BPN office employees in West Aceh Regency. The objects studied were all employees at the BPN office in West Aceh district. Data collection techniques used quantitative methods in the form of questionnaires, interviews, observations, and document studies. This study uses primary data in the form of questionnaires or questionnaires distributed to all employees of the BPN office in West Aceh district, with a return rate of 97%. The data is then analyzed using multiple regression analysis to measure how much influence organizational commitment and compensation have on employee performance in the office West Aceh district BPN. The results of the study explain that organizational commitment has a positive effect on employee performance and compensation has a positive effect on employee performance. From the results of this study indicate that organizational commitment and compensation significantly influence employee performance in West Aceh district BPN office is at 69,27%.

 

Keywords: Organizational Commitment, Compensation and Employee Performance

 

Received 15 September 2021, Revised 25 September 2021, Accepted 1 October 2021

 


INTRODUCTION

In the growing era of globalization, one of the determining factors for the success of a business is that human resources are the most important asset for the effectiveness of the organization's vision and mission efforts. To be able to improve the quality of employees there are factors that really need to be considered in order to create maximum employee performance (Jelenic, 2011). Basically, the most important thing to achieve a maximum goal is to start from the most supportive thing to achieve a goal, namely human resources (HR) (Susan, 2019).

In the face of rapid technological development, quality human resources will be a force for companies to survive. The ease caused by technological advances also causes many new competitors to enter the business that has been undertaken. The ease of competitors-new competitors to enter the business world, resulting in increasingly fierce competition. The implementation of human resource development must be well planned to get satisfactory results and in accordance with the expected (Dipang, 2013).

The power of human resources in an organization is increasingly realized so that humans are seen as the most important asset of various resources in the organization. The strong position of man in organizations exceeds other resources such as materials, methods, money, machines, markets, thus encouraging experts to contribute theories about human resource management (Rozarie & Indonesia, 2017).

As for employees who have great potential and have skills in building a reliable organization, as much as possible the organization must be able to maintain it to participate in contributing to making a reliable agency. Thus for the purpose of an agency, there are many factors that can affect employee performance, namely factors within an agency such as organizational commitment and compensation. Of the two components, there is a very influential role in the work done by employees, with the efficiency, effectiveness of a job entrusted to the employee, as well as the employee will provide better quality in duties and responsibilities.

In this study, the office of the National Land Agency of West Aceh district became the object of research. The National Land Agency (BPN) is a non-departmental government agency under and responsible to the President. This institution is led by a Head of Office who is fully responsible for the implementation of services in the land sector nationally, regionally and sectorally (Ardiansyah, Marthen, & Amalia, 2015).  In an effort to carry out its duties and functions optimally and achieve the planned results, the National Land Agency has developed an organizational structure and working procedures for its apparatus from the central level to the district/city level. The West Aceh District BPN office is one of the district/city Land offices that carries out activities in the land sector (Sugiyanto, Djumadin, & Digdowiseiso, 2018). Currently, there are 37 employees in the land office of West Aceh Regency. 22 employees out of a total of 37 people are civil servants and 15 out of 37 are PPNPN (non-civil servant government employees). The West Aceh District Land Office has a vision to create an institution capable of realizing land and land for the greatest prosperity of the people, as well as the realization of a national social system and a national and state social system (Sugiyanto et al., 2018).

Based on the author's observations, the management of human resources at the West Aceh BPN Office is still open to opportunities for improvement in performance aspects. So the authors conducted this research by trying to identify several aspects related to how performance is influenced by organizational commitment and compensation.

 

METHOD

To obtain the results of this study, the authors use the quantitative descriptive analytical research. Quantitative means that in a technical research the test uses statistical testing, which functions to find out how much the relationship between these variables is, the researcher does it from the results of questionnaires that have been distributed to employees of the BPN office, which aims to determine the relationship between the dependent variable and the variable free. In this study, the dependent variable is organizational commitment and compensation, while the independent variable is the employee's performance at the BPN West Aceh office.

The purpose of this descriptive research is to examine the responses of the target respondents regarding the research variables using the instrument in this study and to analyze quantitative statistics in a series of testing the established hypothesis data. The next step is data processing as source analysis in the study collected through the method of distributing questionnaires or questionnaires. While the initial data or information about the situation and field conditions were obtained through observation and interviews.

The population in this study were all members of the BPN West Aceh office, totaling 37 employees. Furthermore, the sampling process is carried out using the census method or the saturated sample method where in this study the sample to be taken is the entire population or all employees of the West Aceh Regency BPN Office, totaling 37 employees.

In this study, the data collection method used is a questionnaire method (questionnaire). The list of statements is made structurally in the form of multiplechoice statements and open statements. This method serves to find out data related to organizational commitment, compensation and employee performance at the Land Office of West Aceh district. The questionnaire used in this study is a closed questionnaire and a series of forms of the questionnaire have provided answers, and makes it easier for respondents to directly choose answers from alternatives that have been provided by the researcher. The forms of alternative answers to the questionnaire are as follows:

 


Table 1

Answer Alternatif Table.

No

Alternative Answer

Score

1.

Strongly Disagree (SD)

1

2.

Disagree (D)

2

3.

Do Not Agree  (DNA)

3

4.

Agree (A)

4

5.

Strongly Agree (SA)

5

 


The data processing method uses the classical assumption test. One way of statistical testing is by testing classical assumptions, which is a requirement that must be met in the multiple linear regression analysis process. The classical assumption tests that are often used are normality testing, multicollinearity testing, heteroscedasticity testing and autocorrelation testing. Furthermore, using the Multiple Regression Analysis method, this analysis is useful for statistically analyzing data to test whether the regression equation can be accounted for and related to the influence of organizational commitment variables (X1), compensation (X2), and employee performance (Y). And then using hypothesis testing which aims to find out the regression coefficients that have previously been formed and to test the equations of the regressions that have been obtained, the results can be justified. If the results of the analysis are declared significant, the regression equation can be used to analyze the value of the performance dependent variable based on the value of the independent variables of organizational commitment and compensation.

 

RESULTS AND DISCUSSION

1.    Research Results

The classical assumption tests proposed in the research module include: normality test, multicollinearity test, and heteroscedasticity test. From the results of the normality test, which functions to distribute the residuals from the confounding regression. Normality testing was carried out using the Kolmogorov-Smirnov test. If the probability significance level is > 0.05 then the research data is normally distributed. The results of the normality test in this study are as follows:


 

Table 2

Kolmogorov-Smirnov Test Table Using SPSS

One-Sample Kolmogorov-Smirnov Test

 

Unstandardized Residual

N

37

Normal Parametersa,b

Mean

0E-7

Std. Deviation

3.01944238

Most ExtremeDifferences

Absolute

.156

Positive

.104

Negative

-.156

Kolmogorov-Smirnov Z

.949

Asymp. Sig. (2-tailed)

.328

a.     Test distribution is Normal.

b.     Calculated from data.

 


From the results of the normality test listed in the table above, the Asymp value. Sig. (2-tailed) is 0.328 and the probability value is >0.05. So the results obtained in this test are normally distributed. The author also uses the One-Sample Klomogorov-Smirnow Test, and is supported by the Normal Probability Plot graph and histogram. The data can be said to be normally distributed from the Normal Probability Plot graph because of the spread of points around the histogram graph line. The histogram obtained shows that the data is normally distributed and balanced or stable from the form of the tabular pattern. The form of the acquisition of the results is as follows:



 

Multicollinearity test is useful to test how strong the bond from the independent variable to the dependent variable is. The test system is multicollinear value obtained from the results of the tolerance value and the value of the variance inflation factor (VIF). If the tolerance value is < 1 and the VIF value is < 10, it can be said that there is no multicollinearity. The results of the multicollinearity test using the SPSS version 20 software application are as follows:


 

 

 

 

 

 

Table 3

of Multicollinearity Test Result:

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

Collinearity Statistics

 

B

Std. Error

Beta

Tolerance

VIF

 

1

(Constant)

27.265

8.552

 

3.188

.003

 

 

 

C. Organization

.222

.232

.133

.957

.345

.850

1.176

 

Compensation

.572

.113

.705

5.074

.000

.850

1.176

 

a.     Dependent Variable: Employee Performance

 


It can be seen from the table listed above, it is known that the value of tolerance for the independent variable < 1 and the amount of VIF < 10. Meaning that the tolerance value of the organizational commitment and compensation variable is 0.850 with a VIF of 1.176, so we can conclude that there is no multicollinearity between the independent variable and the dependent variable.

2.    Heteroscedasticity Test

This test serves to determine whether there is a deviation from the classical assumption of heteroscedasticity, meaning that in the regression model there is an inequality of variance from one observation residual to another (Ratnasari & Lestari, 2020). As for the basis for a decision from heteroscedasticity testing using the glacier test, the value obtained from the data is declared significant and meaningful greater than 0.05, if the value is significant, the conclusion is that there is no heteroscedasticity in the regression model.


 

Figure 1 of Multicollinearity Test Results:

 



Based on the scatterplot image, it can be seen that the points contained in the image listed, it can be seen that the points are in the number 0 section above and there is no clear image or shape on the Y axis from the scatterplot image. explained that there was no heteroscedasticity listed in this study. This is reinforced by the results of the glacier test in the following table:


 

 

Table 4

Glacier Test Results Table:

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

T

Sig.

B

Std. Error

Beta

1

(Constant)

27.265

8.552

 

3.188

.003

C. Organization

.222

.232

.133

.957

.345

Compensation

.572

.113

.705

5.074

.000

a.     Dependent Variable: Employee Performance

 


From the results of the glacier test obtained from the SPSS output in the table above, it proves that there are two independent variables having a significance amount above 5%, so that the regression model does not have heteroscedasticity in this study. Related to this, it shows consistency with the results of the previous scatterplot test.

3.    Multiple Regression Analysis

This method is applied to find out the relationship between variables X1, X2 and also variable Y. These variables, namely organizational commitment, compensation and employee performance have become objects in this study. The implementation of this multiple linear regression can predict the results of the value of the dependent variable from all independent variables whose value is known, using the calculations in the SPSS statistical version 20 application. The results of the calculation of the equations of the multiple regression analysis are as listed in the following table this:


Table 5

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

T

Sig.

B

Std. Error

Beta

1

(Constant)

27.265

8.552

 

3.188

.003

Organizational Commitment

.222

.232

.133

.957

.345

Compensation

.572

.113

.705

5.074

.000

a.     Dependent Variable: Employee Performance

 


4.    Hypothesis testing

The usefulness of conducting hypothesis testing which aims to determine the level of significance of the coefficients that have previously been formed, and at the same time knowing a basic placement that is useful for researchers for collecting evidence in the form of data as well as knowing related to a decision to accept or otherwise reject Ho from an assumption truth. has been researched and the results can be justified. If the results prove significant and can be accounted for, then the multiple regression equation can be used.

5.    Partial Test (t Test)

The benefits of partial testing or t-test are useful for each relationship of the independent variables, which in this research are compensation and organizational commitment to the dependent variable, namely performance (Agus, 2010). Partial testing can be seen from the t test, if the probability value is <0.05 then Ho is rejected, Ha is accepted, which means there is a significant effect between the independent variable and the dependent variable. The partial tests that have been carried out are as follows:


 

Table 6

Partial Test (t Test)

     Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

T

Sig.

 

B

Std. Error

Beta

1

(Constant)

27.265

8.552

 

3.188

.003

C. Organization

.222

.232

.133

.957

.345

Compensation

.572

.113

.705

5.074

.000

a.     Dependent Variable: Employee Performance

 


a.     Hypothesis Test 1

Based on the results of the tests that have been carried out, the t value of the organizational commitment variable is 0.957 with a sig level. 0.345 and the T table value is 2.03224451 or 2.03. From 0.957 < 2.03 so that Ho is rejected and Ha is accepted, it means that Organizational Commitment (X1) has an effect on employee performance (Y) at the West Aceh district BPN office.

b.     Hypothesis Test 2

From the results of the tests that the researchers did, there were results from the t count for the compensation variable of 5.074 and the level of 0.00 and the T table value of 2.03224451 or 2.03. So 5.074>2.03 so that Ho is accepted and Ha is rejected, which means that partially compensation (X2) affects employee performance (Y) at the BPN office in West Aceh district.

6.    Simultaneous Test (F Test)

Simultaneous testing aims to find out the relationship between the independent variable and the dependent variable together (simultaneously). related to this test which simultaneously (F test) in a series of effects of organizational commitment and compensation simultaneously on employee performance. The results of the simultaneous in this study are as shown in the table below:


 

Table 7

Simultaneous Test Table (F Test)

ANOVAa

Model

Sum of Squares

Df

Mean Square

F

Sig.

1

Regression

260.057

2

130.029

13.470

.000b

Residual

328.213

34

9.653

 

 

Total

588.270

36

 

 

 

a.     Dependent Variable: Employee Performance

b.     Predictors: (Constant), Compensation, C. Organization

 

 


As for the results of the tests that have been carried out, the F value obtained is 13,470 with the results of sig. 0.000. And the value of F table = 3.27589799 or 3.27. So 13,470>2.03 so that Ho is accepted and Ha is rejected, which means that partially compensation (X2) has a significant and significant effect on employee performance (Y) at the BPN office in West Aceh district.

7.    Simultaneous Coefficient of Determination Test (R2)

Simultaneous determination test with the symbol R2 which is part of the attachment between the dependent variable and the independent variable. In this study Adjusted R Square is used so that the data obtained is not biased by the large number of variables that the researcher will combine into the equation model.


 

Table 8

Model Summaryb

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

Change Statistics

Durbin-Watson

R Square Change

F Change

df1

df2

Sig. F Change

1

.665a

.442

.409

3.10698

.442

13.470

2

34

.000

2.622

a.     Predictors: (Constant), Compensation, C. Organization

b.     Dependent Variable: Employee Performance

 


To determine df 1 (N1) and df 2 (N2), that is, df1=k(number of variables)-1 and df2=n–k. As for df 1 = k-1 = 2 and df 2 = nk = 34. It can be seen from the Model Summary table above, the amount of determination (X1), (X2) for the variable (Y) can be seen in the R Square value of 0.442, so 44% organizational commitment variables (X1) and compensation (X2) affect employee performance (Y) at the BPN office in West Aceh district.

8.    Partial Coefficient of Determination Test (r˛)

The purpose of calculating the coefficient of partial determination (r˛) is to find out which independent variable is the most dominant to the dependent variable (Ghozali, 2016). If the value of r˛ is large, it shows the independent variable that has the most dominant influence on the dependent variable. Based on the results of calculations in the SPSS statistical version 20 program which is in the table below:


 

Table 9

Partial Coefficient of Determin Test (r˛)

 

Coefficientsa

 

Model

Unstandardized Coefficients

Standardized Coefficients

T

Sig.

95.0% Confidence Interval for B

Correlations

Collinearity Statistics

B

Std. Error

Beta

Lower Bound

Upper Bound

Zero-order

Partial

Part

Tolerance

VIF

1

(Constant)

27.265

8.552

 

3.188

.003

9.886

44.645

 

 

 

 

 

C. Organization

.222

.232

.133

.957

.345

.693

.249

.140

.162

.123

.850

1.176

Kompensasi

.572

.113

.705

5.074

.000

.343

.802

.653

.656

.650

.850

1.176

 

a.     Dependent Variable: Employee Performance

 

 


Based on table 9 obtained from the multiple linear regression equation and the results of data processing using the SPSS application and can use the formula r˛ x 100%. The magnitude of the contribution of the influence of each independent variable on the dependent variable is:

a.     Organizational Commitment (X1): (0.162)˛ x 100% = 26.24%

b.     Compensation (X2): (0.656)˛ x 100% = 43.03%

9.    Discussion

After doing all the tests, the results obtained by the researchers related to the effect of organizational commitment and compensation on the performance of the employees of the BPN office in West Aceh district. From the results of several tests that have been carried out, it can be concluded that the organizational commitment and compensation variables have a significant relationship to the employee performance variable, which is proven in the tests previously discussed previously. Related to this, it is proven that the value of organizational commitment is 26.24% obtained from the results of the partial determination coefficient test. This shows that there is good organizational commitment from both parties.

Furthermore, the indicators of affective commitment in this study which stated that some members of the organization expressed pride because they had played a role in being part of the organization, a number of employees from a total of 37 employees showed their enthusiasm for work followed by a full sense of responsibility and thoroughness. But there is also a sustainability indicator which states that there are still some of these employees who still do not agree with the commitment to an organization, and related to this it gives a little picture from the aspect of employees who work at the BPN office of West Aceh district, who are still open to opportunities and think to leave the organization where they work now and do not care about their personal struggles that are given to the success of an organization. There is one more independent variable, namely compensation. Based on the analysis of the previous research data, 43.03% of the results of the partial determination coefficient test were obtained. As for the results of the questionnaire that the researcher got from the respondents, it was stated that the compensation at the BPN Aceh Barat office was categorized as high. And the performance given by employees at the West Aceh district BPN office has been fairly good. And although there are still one or two of the other employees who are not yet fully disciplined.

From the results of this study, the dependent variable, namely organizational commitment and compensation, has a significant attachment to the performance of employees at the BPN office in West Aceh district, which is 69.27%. The remaining 30.73%, which comes from other factors from the variables that exist in this study.

 

CONCLUSION

Related to those obtained from several previous tests and discussions. So the researchers drew several conclusions, including:

1.   From the results of several tests, it is stated that there is a significant influence on the organizational commitment variable on the employee performance variable at the West Aceh BPN office.

2.   There is a significant influence between compensation variables on employee performance variables at the West Aceh BPN office.

3.   As well as the simultaneous significant influence between organizational commitment and compensation variables on employee performance variables at BPN West Aceh.

 

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