International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (910-919), Month: October 2019 - March 2020, Available at: www.researchpublish.com
The Role of Job Satisfaction Mediate the Effect of Empowerment on Employee Performance I Gusti Ngurah Agung Rama Iswara1, I Gede Riana2 1,2 1,2
Udayana University
Faculty of Economics and Bussiness, Bali, Indonesia
Abstract: Performance is behavior that is displayed as a work achievement in accordance with their role in the company. Companies need to pay attention to factors that can affect employee performance to achieve company’s goals. The purpose of this study was to determine the effect of empowerment and job satisfaction on employee performance. The study was conducted on PT. Charoen Pokphand Bali with 50 employees as samples using the saturated sample method. Data was collected by interviews and questionnaires. Path analysis and multiple test were used. Based on the results, empowerment and job satisfaction have positive and significant effect on employee performance.. Empowerment can indirectly affect employee performance through job satisfaction as mediating variable. The implication of this research is that companies need to give encouragement to individuals so that they are enthusiastic in working so that they are satisfied working in the company and increasing their contribution to organizational success. Keywords: empowerment, job satisfaction, and employee performance.
I. INTRODUCTION In the current era of globalization, many companies are competing fiercely to improve the company's progress in the international and national business world. According to Ardiansyah (2016) business competition is getting tougher, therefore companies are required to carry out all their operational activities effectively and efficiently in order to be able to maintain their existence. The company is a business entity that is very closely related to human resources. The only company resources that have competitive value are human resources, where the human resource factor is one of the important aspects that exists in the company as executing every operational activity carried out by the company to bring the company to achieve its desired goals. Human resources are the most important thing in a company, because human resources are the drivers in a company that can provide efficiency in managing a company (Kumara & Utama, 2016). The company as a business organization is expected to be able to manage well the resources of the company (Novriyadhi & Riana, 2015) Every company must have a target or goal to be achieved within a certain period. Companies are required to always improve the performance of their employees. Performance can be judged by what an employee does in his work. Olcer & Florescu (2015) stated that performance is a real behavior that is displayed by everyone as a work achievement produced by employees in accordance with their role in the company. Improving employee performance is the most serious management challenge (Rahayu & Sudibia, 2014) One company that pays attention to the quality of its human resources is the Charoen Pokphand Group (CP Group). Based on the results of interviews and data provided by the Head Office Staff PT. Charoen Pokphand Bali, there are currently 50 employees working and there are indications of problems related to employee performance. The phenomenon that occurs in this company is not achieving sales targets that have been set in 2018, as well as internal problems that occur in its employees. Can be seen from the sales target of animal feed which shows a decrease as in table 1 below:
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