International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (737-744), Month: October 2019 - March 2020, Available at: www.researchpublish.com
The Role of Job Satisfaction Mediate the Effect of Motivation on Employee Performance I Gede Wisnuntara1, I Gusti Salit Ketut Netra2 1,2 1,2
Udayana University
Faculty of Economics and Bussiness, Bali, Indonesia
Abstract: LPD is a Village Credit Institution in Bali, as a savings and loan business entity owned by a customary village with the main function and purpose of encouraging the economic development of rural communities through targeted savings and efficient capital distribution. The LPD has an explicit position as a financial institution based on customary law. As one of the financial institutions that plays a significant role in the economic cycle of the community, especially in the villages. One of the LPD institutions in Bali is the Desa Mengwi LPD. The purpose of this study was to determine the effect of motivation on job satisfaction, to determine the effect of motivation on employee performance, to determine the effect of job satisfaction on employee performance and to determine the mediating role of job satisfaction on the effect of motivation on employee performance. The population in this study were all employees in the Desa Adat Mengwi LPD, amounting to 38 employees. The sampling technique used was saturated sampling, where all employees who worked in the Indigenous Village of Mengwi were 38 people, consisting of 16 male employees and 22 female employees used as research samples. Data analysis techniques used are descriptive analysis, path analysis and multiple test. The results showed that motivation had a positive and significant effect on job satisfaction, motivation had a positive and significant effect on employee performance, job satisfaction had a positive and significant effect on employee performance, and job satisfaction had a positive and significant effect as a mediation between motivation on employee performance. Keywords: Job Satisfaction, Motivation, Employee Performance.
I. INTRODUCTION According to Bali Province Regional Regulation No. 8/2002 and Bali Province Regional Regulation No. 3/2007, LPD is a Village Credit Institution in Bali, as a savings and loan business entity owned by traditional villages with the main function and purpose to encourage community economic development villages through targeted savings and efficient capital distribution. Based on the 2013 Microfinance Institution Law Chapter XII, Article 9, Paragraph (3), LPD explicitly have a clear position as a financial institution based on customary law. As one of the financial institutions that plays a significant role in the economic cycle of the community, especially in Bali, LPD should have good service quality. Good service quality requires employees at the institution to have good performance and high motivation to develop and compete in this globalization era. Based on preliminary observations made at Mengwi LPD, employee absenteeism data shows fluctuations in the number of attendances that are less than optimal. The absenteeism data indicate that the motivation of the LPD Mengwi employees is not yet optimal, which is feared could reduce the quality of service of the institution to the community who are customers in the LPD and also have a negative effect on employee performance. Performance and motivation of employees that have not been maximized can be caused by several things, one of which is employee satisfaction at work. Changgriawan (2017) states that employee performance is one of the impacts or benchmarks of job satisfaction. In addition, according to Wijaya and Sutanto (2014), employees with high job satisfaction certainly have high morale, so that the resulting performance will be maximal. Conversely employees with low job satisfaction, causing poor performance. They become not enthusiastic at work, and this will greatly impact the company. Employee performance
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