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: The purpose of this study is to reveal employee competencies and compensation received by employees, as well as their implications for employee performance. This study was analyzed descriptively and verificatively through a survey method of 329 marketing managers in retail companies in Indonesia. The technique of data collection is done by indirect communication, through instruments in the form of questionnaires. Data were analyzed by weighted means score (WMS) and Structural Equation Modeling (SEM). The results showed that employee competency was good, but not optimal, indicated by the indicator of the employee's need for the company and the employee's priority scale in the work was still weak. Furthermore, the compensation strategy is relatively good, indicated by indicators of salary/wages, incentives and cooperative facilities that are still weak. On the other hand, competencies and compensation strategies partially and simultaneously have positive and significant impact for employee performance which requires serious handling.
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International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8 Issue-3, September 2019
7200
Published By:
Blue Eyes Intelligence Engineering
& Sciences Publication
Retrieval Number: C6220098319/2019©BEIESP
DOI:10.35940/ijrte.C6220.098319
Abstract: The purpose of this study is to reveal employee
competencies and compensation received by employees, as well as
their implications for employee performance. This study was
analyzed descriptively and verificatively through a survey method
of 329 marketing managers in retail companies in Indonesia. The
technique of data collection is done by indirect communication,
through instruments in the form of questionnaires. Data were
analyzed by weighted means score (WMS) and Structural
Equation Modeling (SEM). The results showed that employee
competency was good, but not optimal, indicated by the indicator
of the employee's need for the company and the employee's
priority scale in the work was still weak. Furthermore, the
compensation strategy is relatively good, indicated by indicators of
salary/wages, incentives and cooperative facilities that are still
weak. On the other hand, competencies and compensation
strategies partially and simultaneously have positive and
significant impact for employee performance which requires
serious handling.
Keywords : Employee competencies, compensation strategies,
employee performance, weighted means score, path analysis.
I. INTRODUCTION
Retail business is the whole activity of selling goods or
services directly to consumers to meet personal needs and not
be used for business purposes or further processing. Every
company that sells directly to end consumers, both producers,
wholesalers, and retailers who act in retail business activities.
In the face of these market demands, the symptoms that can
be observed are the emergence of modern markets, such as:
malls, supermarkets, department stores, and shopping centers,
which are not planned in particular in determining locations
that can form synergies between micro, small and medium
traders, including inside traditional markets and/or markets
where there are shops owned/managed by micro, small and
medium traders. Related to this, the government issued a
policy through regulations to create synergies between
modern market entrepreneurs with micro, small and medium
traders, as well as other traditional markets.
The Indonesian Retail Entrepreneurs Association
(Aprindo) predicts the growth of the domestic retail industry
Revised Manuscript Received on September 15, 2019
Rusdin Tahir, Business Administration, Universitas Padjadjaran,
Bandung, Indonesia. Email: rusdin@unpad.ac.id
Rudiyanto, Business Administration, Universitas Padjadjaran,
Bandung, Indonesia. Email: mazz.rudiyanto@gmail.com
Arief Prayitno, Business Administration, Universitas Padjadjaran,
Bandung, Indonesia. Email: ariefprayitno8668@gmail.com
Dadang Amiruddin , Business Administration, Universitas Padjadjaran,
Bandung, Indonesia. Email: dadang.amiruddin@capcx.com
Tita Rosita, Education Management, Univeristas Terbuka, Indonesia.
tita@ecampus.ut.ac.id
to slow down due to changes in consumer patterns. The retail
industry is currently running very slowly, in 2012-2013 at its
peak. Roy explained, in the first semester of 2014 the retail
industry only grew 3.7 percent while the previous year was
still above 10 percent.
The modern retail-supermarket industry is very prospective
for this development, it can be seen that since 2001 as many as
220 million more than 1: 400,000 self-service retailers, while
in Malaysia for example the number of self-service modern
retailers is 1: 53,000. PT Hero Supermarket Tbk's GM
Corporate Affairs Tony Mampuk revealed, there are some
challenges facing the retail business to develop. One of them
is regulation if you want to open new outlets in the area.
The amount of customer interest uses the retail market as
a shopping destination, because there is enough quality
assurance available for the items purchased, comfortable
air-conditioned rooms and the completeness of the items to be
purchased. The results of research conducted by the Pasar
Jaya Trading Company Jakarta (1992) regarding the reasons
why consumers shop at supermarkets, found that the biggest
reason was due to the quality of goods guaranteed and price
certainty (91%), being able to shop while recreation (90%),
save time (83%), can use a credit card (56%), shop security is
guaranteed (93%), arrangement of attractive items (94%), and
can shop at night (94%). The presence of modern retailers
with all its tendencies is a trigger for further study from
various prospective. Furthermore, some types of retailing
according to Hameli[1], are explained as follows:
1) Specialty Store. Selling a narrow range of products with
more variety in the line, clothing stores, sports equipment
stores, flower shops and bookstores. Special stores can be
classified again according to the level of specificity of
their product lines. Clothing stores are classified as single
lines, men's clothing stores are limited line shops, while
men's clothing stores are classified as very specialized
stores.
2) Department Store sell certain product lines such as:
clothing, home furnishings, and household equipment,
each of which operates as a separate department managed
by special sellers or traders.
3) Supermarket is a relatively large business/opportunity,
high sales volume, low cost, low margin. Supermarkets
are designed to serve all consumer needs such as food,
laundry and household care products, etc.
4) Convenience Store, is a relatively small shop and is
located in a residential area, has long opening hours of
seven days a week, and sells
limited convenience product
Employee Competencies and Compensation
Strategies as Company's Strategic Effort to
Escalate Employee Performance
Rusdin Tahir, Rudiyanto, Arief Prayitno, Dadang Amiruddin, Tita Rosita
Employee Competencies and Compensation Strategies as Company's Strategic Effort to Escalate Employee
Performance
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lines with high turnover rates.
5) Discount Store, sell standard goods at lower prices
because they take lower margins and sell at higher
volumes.
6) Off-Price Retailer buy merchandise at a price lower than
the wholesale price and sell it at a lower price than the
retailer.
The type of modern retail that will be the subject of
further studies, as explained by Hameli[1] above, is only
limited to the retail market which is in the category of
Department Stores and Supermarkets. Therefore, in the
further discussion the term retail market will be used, which is
intended to be the retail market that is in the category of
Department Stores and Supermarkets. However, due to the
limitations of the retail market included in the Department
Store and Supermarket categories that Hameli[1] has stated
are not so clearly defined in terms of limits, the references
used tend to be categorized according to the criteria carried
out by Aprindo (Indonesian Retail Entrepreneurs
Association).
Referring to the description above, the meaning of
employee performance has not been clearly explained, but in
previous studies it has been identified that there are several
factors that can affect employee performance, such as
competence and compensation. It's just that it is not clear how
much the influence is intended, and the extent of its
implications for market share. So the purpose of this research
is to reveal employee competencies, compensation received
by employees, and employee performance and its
implications for market share.
The results of this study are expected to be useful not only
in the development of science, especially human resource
management, but also will be practically useful especially for
companies in inventorying employee performance
improvement by learning more about employee competencies
and managing compensation well so that they can compensate
employees who have optimal performance.
II. LITERATURE REVIEW
The Compensation Concept
Compensation is one of the functions of human resource
management that is closely related to the issue of awarding
individuals who are directly involved in the company's
activities for their contribution to the achievement of the
objectives of the company.
There are different views of experts in explaining
compensation concepts, as in the following table:
Table 1. The views of experts in interpreting
compensation
Number
Compensation Concept
[2]
The compensation result from the allocation,
convertion, and transfer of the income of an
organization to its employees for their monetary
and in-kind claims on goods and services”.
[3]
Employee benefits is that part of the total
compensation package, other than pay for time
worked, periode to employes in whole or inpart by
employee payments
[4]
Compensation not only satisfies one’s basic needs;
pay and the things it buy are also recognition of
achievement, providing signs of power and status
in society.
Compensation is what employee receive in
exchange of their work. Whether hourly wages or
periodic salaries, the personnel departement
ussually designes and administers employee
compensation.
The total of all rewards provided employees in
return for their labor.
Paid time off (holidays, vacations, personal leave,
funeral leave, jury duty leave, military leave, sick
leave, family leave).
Insurance (sickness, and accident, long term
disability, medical care, dental care, life
insurance).
Retirement (defined benefit pension, defined
contribution pension).
Other benefit (flexible benefit pension,
reinbursement account, child core unpaid family
leave).
All the extrinsic rewards that employee receive in
exchange for their work: Compose of the base
wage and salary, any incentive or bonuses, and any
benefits.
Refers to all financial returns and tangible services
and benefits employee receive as part an
employment relationship
The theoretical approach that is used as a reference in
determining the compensation theory of a manager is the
equity theory and neoclassical labor market theory.
Understanding of equity theory in practice seen from the
perspective of managers according to Pritchard (1969) is that
equity theory suggests that employees assess the benefits of
receiving them from their employers by comparing them to
both the and outside of their firms.
Justice will not happen by itself, but there are conditions
that require the achievement of justice. According to Wallace
& Fay (1988) a state of equity is achieved when an individual
employee is perceived that his or her rate of return on
investment is an equal relationship to employee rates.
Furthermore Wallace & Fay (1988) states that equity
theory proposes three types of equity (equity) that managers
can consider in giving an assessment of the return on their
employment relationship, namely (1) Individual equity is
achieved when the employee perceived that the employer
rewards individual employees according to individual
variations in terms of productivity, tenure, and/or work effort
are recognized via unique individual pay rates); (2) Internal
equity is an employee perceive that the employer
appropriately values job positions within the organization
(e.g. sets of wage rates for positions within the organization).
It is most often associated with a range of assignments to
specific job categories; (3) External equity is achieved when
the employee is perceived that is comparable to the prevailing
external market rate for his or her occupation.
The three theories of justice as stated by Wallace &
Fay[10] provide clues that compensation can be seen from the
perspective of the individual, the internal and external
environment of the
organization. These three
perspectives are the focus of
International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8 Issue-3, September 2019
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DOI:10.35940/ijrte.C6220.098319
manager's attention in considering the type of compensation
management will provide.
Judging from neoclassical labor market theory[11]
revealed that Neoclassical labor market theory views are
compensation - related decisions from the perspective of
labor supplay and demand. The employment decision and the
salary levels are determined by the market for labor, and the
employer is viewed as a "price taker" that must pay the
prevailing market rate for any given job. According to
economic theory, external equity is an employer pays the
average market salary for a given position. The referral of
these models is the market for the given profession or job
position.
The theory of compensation as referred to in neoclassical
labor market theory explains that decisions regarding
compensation relate to labor demand and supply. Decisions
regarding managerial positions and positions and
compensation rates are highly dependent on the labor market,
and are also determined by the ability of company
management to pay compensation for manager positions.
Viewed from the perspective of an external equity,
compensation payments can be adjusted to the average
compensation that applies in general to manager positions.
The Competence Concept
In the service industry, in fact most of the series of
activities carried out by humans, the high quality of service is
identical to how high the quality of human resources involved
in the whole process of service. Research conducted by [12]
in the service industry in the United States shows that skills in
carrying out work, skills in interpersonal relationships,
courtesy, friendliness, tolerance and pleasant attitude are very
important dimensions of service quality, especially for
intensive services, where front group employees become key
individuals [12]. Mersha's opinion is in accordance with the
opinion of [13]which states that the main determinants in
service are product reliability, quality and delivery system
supported by good employee service, attitudes, knowledge
and skills of good employees [14].
In contrast to physical assets, competency will never be
obsolete, even though competence can lose its value. In
general, the more often a competency is used, precisely the
better and more valuable [15]. Meanwhile, competence is the
most difficult thing to imitate, because its nature is indeed
different and specific for each individual [16]. This is what
underlies the conclusions of Munro's research, which states
that for various industries, competence is believed to be a
factor of corporate enabler to build competitive advantage by
providing a framework for the functions of human resources
to be directed sharply at activities to build the capabilities of
its employees [17]. This statement is reinforced by [18] who
proves that the accumulation of competencies that exist in a
company can be directed into a factor of competitive
advantage for a company. It is this argument that underlies
[19] opinion which states that currently competency is the
basis for world-class companies in carrying out their business
strategy setting. Therefore, now the challenge for many
companies is to introduce a development process based on
competency, which has been proven to be able to increase the
productivity of companies and individuals [20].
Kathyayini (2012)study in Australia showed that only 49%
of the 100 largest companies in Australia in 1993, which in
2000 remained in the top 100, or in other words, in a relatively
short period of 7 years, 51 % of large Australian companies
must be displaced from their position in the order of the 100
largest companies. This condition turns out to be very
strongly correlated with the conditions of the human
resources of these companies.
Such conditions are very likely to occur, as Watson's
research found, which states that the existence of a company
is largely determined by the competency level of employees
within the company, the key is how well the company is able
to mobilize energy and talent from its employees [15]. This
shows that employees who have high professional skills and
competencies are able to not only carry out limited
development in the scope of the company, but also at the same
time be able to identify for future developments [22].
For companies in the service industry, where production
and consumption occur simultaneously, the problem of
employee competence is a challenge for the company.
Competencies that are unique to the field of service are
needed, which are relatively different from the manufacturing
sector, and for that we need different competency
management capabilities[23].
One of the competencies of employees who are considered
to hold the key to success in the era of globalization,
according to [24] is competence in communication, because
basically, the development and distribution of cultures that
vary requires business entities to be able to adjust themselves,
so that at least employees have communication competencies
consisting for four areas, namely: language, roles and norms,
the ability to develop affective conversations, and the area of
applied communication.
This is quite reasonable, because the actual activities of the
company are carried out by each role in the activity units, so
the thing that must be realized together is that each role in the
work requires their respective competencies, and those needs
are always developing and grow over time [25]. Whereas to
be able to find out whether certain competencies are in
accordance with the demands of the situation and conditions,
Robotham[26] argues, that competencies must be measurable,
and this can only be done fairly if measurements are made for
certain sectors, considering competencies are only relevant
when faced with certain skills in certain industries [27].
Clear definition of the competencies needed for a particular
type of work in the industry and that particular time will
provide high benefits to three parties, namely: 1) for
companies, especially for the benefit of human resource
development, 2) individuals who currently in the company, to
recognize competency gaps that must be pursued, and 3) job
seekers or prospective employees, to adjust to the
competencies demanded of them [28].
Research conducted by Kuglin[29], to determine whether a
company really has the competencies as needed, there are at
least three criteria, namely: 1) the competencies possessed are
able to gain access in various types of existing markets, 2)
have a significant contribution to the benefit of the customer
and the product or service
produced, and 3) it is difficult to
Employee Competencies and Compensation Strategies as Company's Strategic Effort to Escalate Employee
Performance
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DOI:10.35940/ijrte.C6220.098319
imitate even the closest competitor [30]. [28]believes that the
competencies needed by someone can be obtained either
through formal education or experience.
Competence can even be used as a reference for a certain
individual's behavior, namely how they carry out activities
and make a response within the company, especially in the
scope of work that is their responsibility [28].. Even
strengthening the company's strategy by using competencies
is believed to be able to increase the company's flexibility in
responding quickly to various business opportunities in the
future [31].
The importance of focusing attention on competency
development in accordance with the demands of each type of
industry, as stated by Horton above, is also a major concern in
the research conducted by Tovey, which states that it is very
difficult to find values in "Distinctive" employee
competencies by using a “Generic" approach, this is caused
by: 1) the nature of the business or industry itself, which
requires competencies that are different from other industries,
2) types of work in a series of processes within the industry
that have functions and responsibilities different, and 3) the
company or work unit where the employee is located [32].
Clearly, there is no one type of competency that can be
precisely or precisely needed or can be applied to different
types of work, therefore identification of what competencies
are needed to carry out certain tasks is quite crucial [33].
Many experts and researchers do definitions according to
their perspectives, scientific background, and the results of
empirical research on competencies. Various definitions of
competencies from experts that were successfully obtained by
researchers are:
Table 2. The Competence Concept
Number
The Competence Concept
[34]
Something that concerns a
person's functions, roles, duties,
skills, abilities or personal
qualities
[35]
Something that underlies a
person's characteristics which
consists of motives, talents, skills,
and aspects related to social roles,
or knowledge possessed by
someone
[27]
Certain behavior of an
individual, which is shown by how
the individual reacts to the
environment of his company.
[36]
Personal characteristics of a
person and how they use them in
their work and profession
[37]
Characteristics that underlie a
person to be able to show a good
work performance in the field of
work, role or certain situation
[38]
skills in managing interpersonal
relationships from employees who
provide services to customers
Based on the opinions of experts who carried out previous
research, in this study, employee competency was seen from
several characteristics, such as: enthusiasm for achievement,
initiative, self-confidence, orientation to quality, self-control,
concern for customer satisfaction, group work and
collaboration, and build working relationships.
The Employee Performance Concept
Work performance or performance is interpreted as
building a center in the psychology/organization industry [39]
[40][41]. Many of the employee selection is based on the
premise of choosing from many of their applicants who tend
to show better work results (compared to those who are not
selected). Many training programs are designed to improve
job performance. Individual assessments are carried out to
identify their strengths and weaknesses in order to design
training programs and for optimal placement decisions.
Performance appraisal, is an attempt to determine feedback
and / or even assess the services of an employee to pay for and
determine employee performance information systems. In
other words, work performance or employee performance is
how to build something that is a center of much work
psychology. Thus, it is important to know what requires that
the construct of employee performance is interesting to be
studied further by studying the competencies and
compensation expected by a manager.
Many definitions of employee performance have been
proposed industry [39] [40][41]. In order to understand them
further, employee performance refers to scalable actions,
behaviors and outcomes of employees involved and
contributing to company goals. Apart from abstract
definitions, how do we know what is employee performance?
To answer this question the researcher has applied several
combinations of one of the following four approaches:
First, researchers have reviewed the measure of work
performance used in different contexts and are trying to
synthesize what dimensions construct employee performance.
This method is quite rational in synthesizing and the
possibility of constructing a theory,
however, will be influenced by focus, interest and maybe
even bias from individual researchers doing the theory.
Second, researchers rely on analytical work techniques to
explain behavior and related dimensions for employee
performance. In this approach, standard job analysis
techniques are used to find out what makes employee
performance[41]. That several dimensions that are
performance appear in the context of critical analysis, task
analysis, and analytic analysis of other work. However,
although there is much to be said about analyzing work and
thus finding binding behavior in work, quite often the
performance dimensions are obtained using job analysis, but
have differed from those obtained using other empirical
methods. Structure is an important factor or the criticality of
ranking does not reflect the dimensions of actual behavior on
the job.
Third, researchers have developed the dimensions of the
hypothesis, collected data about these steps, and analyzed
data factors [42]. This is (way and empirical) most directly
assessing the dimensions of the
performance domain.
International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8 Issue-3, September 2019
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DOI:10.35940/ijrte.C6220.098319
Unfortunately, this empirical approach is limited by the
number and type of steps included in the data collection stage.
Viswesvaran, Ones, and Schmidt [43] propose the
principle for performance appraisal and argue that
comprehensive specifications of the domains of performance
constructs can be obtained by compiling all measures of work
performance that have been used in occupational psychology
which still contains literature from the last eighty years.
Fourth, Welbourne, Johnson, and Erez [44]felt called
upon by developing organizational theory to determine what
content constructs are. Organizational theory further explains
the performance construct born of the difference between
assignments and performance contextually. Distinguishing
between contextual tasks and performance is aligned with the
postulated social and technical systems for creating
organizations.
Binning & Barrett [45] show a performance model that
aims to reveal dimensions at different levels, about the
developmental context of performance dimensions
characterized, as: (1) stand alone, certain, or (2) part of a set
larger than dimension. After reviewing several dimensions
that have been developed independently (for example,
prosocial behavior), this study reviews a more comprehensive
model of performance itself.
Thus, contextually there is a relationship between
competence, compensation with employee performance, with
several premises, namely:
1. Competence is formed from the synergy of character,
behavior, self-concept, motives, knowledge and skills that
influence character, attitudes, behaviors and abilities and
willingness to face work that ultimately affect their work
performance.[46][47]
2. Competence can be used as a reference for a particular
individual behavior, namely how they carry out activities
and conduct responses in an organization, especially in the
scope of work that is their responsibility[26][29]
3. Compensation can motivate employees if they believe that
good performance will result in high compensation and
the compensation is very valuable to him[3].
4. Performance as the appearance of work behavior which is
characterized by the flexibility of motion and work order
according to the procedure so that results are obtained that
meet the requirements of quality, speed and quantity
[26][48].
5. Performance as a pattern of actions implemented to
achieve goals, measured by comparison with various
standards [26][48].
6. The participation of clerk employees in the retail business
in providing services is a guide for customers to the
services provided, including how they dress, look, behave
and behave can affect the buyer's perception of services
received [49].
7. Compensation as an award or reward given to motivate
workers to work high productivity which will have an
impact on the level and quality of life of workers who will
determine the performance of workers. [50].
Based on the premises which are the evidences of the
experts mentioned above, a hypothesis can be formulated in
this study. Competence and compensation affect the
performance of employees both simultaneously and partially.
III. RESEARCH METHOD
The method used in this study is explanatory survey
method. Based on the research objectives to be achieved, the
type of research used is verification and explanatory research
that tests and explains employee performance as a result of
changes in competency and compensation factors; and then
test the empirical model.
This study uses data from the perception of Marketing
Managers during the period 2016 to 2018. The population as
the unit of analysis in this study is marketing managers who
are active in Retail companies in Indonesia.
The variables examined in this study are: Competence,
including: commitment to the company, desire for
achievement, cooperation, proactivity, leadership, and
discipline; Compensation, including: direct compensation
and indirect compensation; and Employee Performance,
including: quality of work, quantity of work, understanding of
work procedures, creativity, cooperation, delegating ability,
initiative, and personal quality.
Determination of the sample in this study was carried out in
one stage, namely determining the sample marketing manager
supervisor with maximin method. The observation unit in this
study is a retail company that belongs to the Department Store
and Supermarket categories, so that not all retail markets in
Indonesia are designated as observation units.
In accordance with data obtained from the Ministry of
Industry there are 329 marketing managers who work in retail
companies operating in Indonesia, which consist of several
categories, but which are the units of observation in this study
are 21 Department Stores and Supermarkets.
Whether or not a questionnaire is used, which is known as
Discriminating Power. The criteria for testing validity and
reliability in this study refer to 2 (two) points:
First, Discriminating Power Test Criteria of [51]:
Table 3. Discriminating Power Test Criteria
r-Value
p-Value
Description
> 0
<
item can be used
> 0
>
item cannot be used
= 0
=
item cannot be used
< 0
<
item needs to be checked
for error possibility
< 0
item cannot be used
Second, Criteria used as follows:
Table 4. Instrument Validity and Reliability Test Criteria
Validit
y
Reliab
lity
Model
Note
.5
.3
.2
.1
.8
.7
.6
.5
Good
Acceptable
Marginal
Poor
Good
Fair
Still
can be
used
Bad
Employee Competencies and Compensation Strategies as Company's Strategic Effort to Escalate Employee
Performance
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DOI:10.35940/ijrte.C6220.098319
Data collection techniques were carried out by indirect
communication techniques with instruments in the form of
questionnaires and documentation study guides. Data analysis
techniques use Structural Equation Modeling (SEM).
IV. FINDINGS AND DISCUSSION
Statistical Description
An overview of employee competency conditions,
Compensation Management, and Employee Performance of
Indonesian Retail Companies. Table 6, 7, 8 and 9.
Table 6. Recapitulation of Results Reached By Each
Variable
Variable
WMS (%)
Competence (X1)
74,55
Compensate (X2)
69,43
Performance (Y)
80,10
Tabel 7. Weighted Mean Score Result Competence
Variable X1
Dimention & Indicator (No Item)
WMS (%)
Commitment to the Company:
Employee Needs for the company (1)
60,00
Determine priority scale (2)
68,87
Knowledge of company goals (3)
77,32
Average
68,73
Desire to Achieve
Results that exceed the standard results (4)
75,88
Results that exceed
standard size (5)
78,35
Results exceed standards
success (6)
79,18
Results that exceed standards
that is challenging (7)
77,73
Results that exceed standards
ever achieved (8)
80,21
Average
78,27
Cooperation
Ability to work
in teamwork (11)
76.91
Ability to be
part of the team (12)
75.46
Diagonal capability across functions/parts (13)
72.58
Ability to cross timwork in one function/part
(14)
73.20
Average
74.54
Proactive
Initiative (15)
68.04
Improve the performance (16)
74.43
Preventing emergence
problem (17)
70.10
Creating opportunities (18)
73.61
Average
71.55
Leading
Take part in the team (19)
78,35
Use authority &
position authority (20)
75,05
Sub Number of Leads
76,70
Discipline
Finish the job
on time (21)
75,05
Average
75,05
TOTAL
74,55
Table 8. Weighted Mean Score Result Compensate
Variable (X2)
Dimention & Indicator (No Item)
%
Direct Compensate:
Salary/Wages (1)
60,00
Incentive (2)
68,84
Average
64,42
Indirect Compensate
Occupational Health Insurance (3)
75,88
Maintenance costs (4)
78,35
Transport Allowance (5)
79,18
Meal allowances (6)
77,73
Salary payment during
off work (7)
80,21
Work uniform (8)
89,93
Holiday allowance (9)
73,24
Cooperative Union (10)
63,46
Saving and loan cooperative (11)
69,23
Appreciation (12)
73,14
Average
76,04
TOTAL
70,23
Table 9. Weighted Mean Score Result Employee
Performance Variables (Y)
Dimension & Indicators (No Item)
WMS (%)
1. Work Quality
Conformity to the amount of work done with the standard
set (1)
66.60
Match the amount of time used with the time available (2)
88.66
Match the correct number of errors made (3)
75.46
Average
76.91
2. Work Quantity
Accuracy of work accuracy with the standard set (4)
65.98
Conformity to the perfection of work with the standards
set(5)
78.14
Average
72.06
3. Work Procedure Understanding
Knowledge of employee work (6)
96.49
Knowledge of the work environment of employees (7)
91.75
Knowledge is related to direct supervisor (8)
96.29
Knowledge of the institution where you work (9)
76.70
Rata-rata
90.31
4. Creativity
The ability to test existing ideas related to
work (10)
63.92
The ability to develop existing ideas related to work (11)
92.37
The ability to find/create new ideas related to work (12)
77.94
Rata-rata
78.08
5. Teamwork
The ability to work with others is related to work (13)
76.49
The ability to work with commanders related to work (14)
94.85
The ability to work with the Team is related to work (15)
75.67
Average
82.34
6. Delegating Ability
The ability of pilots to follow
instructions (16)
76.91
The ability of pilots to follow policies (17)
94.85
The ability of the pilot to be trusted by the commander
(18)
71.55
Rata-rata
81.10
7. Initiative
Conformity between work spirit and initiative (19)
76.70
Average
76.70
8. Personal Quality
Appropriateness of capabilities with pilot leadership
progress (20)
74.85
Suitability
with private pilot socialization (21)
74.43
Suitability
with the integrity of the pilot (22)
75.67
Average
74.98
Total
80.10
Inferential Analysis
Based on the results of data processing with the help of
computer services with the LISREL program the results of
hypothesis testing are obtained as shown in the following
table:
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Table 10. The impact of X1 and X2 to Y
Koefisien R
p-Value
F Change
&
t
R2
Ket
X1 & X2 Y =
.684
.000
103,699
.468
H0 Reject
X1 Y = .436
.000
4.359
.119
H0 Reject
X2 Y = .268
.000
2.673
.072
H0 Reject
Source: Data is processed by the author (2015)
Referring to Table 10, it is proven that the hypothesis
states that Competence and compensation affect employee
performance both simultaneously and partially.
The results of this study are still relevant to the results
of research by Robertson[52] who concluded that competence
and compensation were able to increase the productivity of
companies and individuals.
Another thing stated by Best [53] that one of the
important factors that can be a measure of the success of an
entity in its efforts to remain in the industry is the ability of the
business entity to provide services to its customers.
This is in line with the results of a study conducted
by Mersha in the service industry in the United States in 1991
showing that skills in carrying out work, interpersonal skills,
courtesy, friendliness, tolerance and pleasant attitude are
dimensions of service quality that very important, especially
for intensive services, where front-line employees become
key individuals[12]. Mersha's opinion is in accordance with
the opinion of Walker [13] in Johnston who states that the
main determinant in service delivery is product reliability,
quality and delivery system supported by good employee
service. Based on simultaneous hypothesis testing between
competence and compensation for employee performance has
a strong enough influence. This shows that the simulta
between competence and compensation is very important in
improving the performance of salespeople in accordance with
the Kandola statement in Hannon [47] which states that
currently competency is the basis for world-class companies
in their business strategy setting. While Greene [54]
succeeded in proving that the accumulation of competencies
that exist in an organization can be directed into a factor of
competitive advantage for a company. In addition, the
research conducted by Birdir[55] supports the importance of
competencies as a reference in evaluating a performance and
reference in determining compensation. Salesperson
competencies need to be accompanied by reasonable
compensation because competency alone is not necessarily
able to improve high performance and vice versa that giving
reasonable compensation does not necessarily improve the
performance of salespeople. Therefore the simultancy
between competency and compensation has a very decisive
role in improving employee performance.
V. CONCLUSION
Employee competencies and compensation received by
employees simultaneously and partially have a significant
effect on employee performance. This shows that the high and
low competencies of employees and good management of
compensation can affect employee performance. Thus,
competency has decisive implications for improving
employee performance but competency alone is not enough
without accompanied by good compensation management,
meaning that implementation in a simultant and partial
manner between competence and compensation is very
important so that employee performance can be optimally
improved.
Partially the employee competency variables have
significant implications with the moderate category, while the
compensation management variables received by employees
have a significant influence on the weak category.
Employee competency and compensation simultaneously
and partially have a significant effect on the market share of
retail companies with a fairly strong category, but partially
these two variables have a significant effect on the weak
category, meaning that employees in retail companies still
have no competency and those who have competence not yet
fully implemented, so that it has less implications for
improving employee performance. Furthermore
compensation has not been managed properly, especially
indirect compensation, such as incentives. The influence of
employee competency is greater than the compensation
received by employees for market share, but the difference is
not too significant, so both have almost the same implications
for market share.
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AUTHORS PROFILE
Rusdin T (http://www.rusdintahir.com), Born in Bone,
August 14, 1966. Expert in the field of organizational
behavior and human resource strategies. Undergraduate &
Post-graduate school: Business Administration,
Indonesian Education University (1992); Master Degree
in Padjadjaran University (2000); Doctor Degree in
Padjadjaran University (2013). Area of Interest: Management Science and
Business Administration Science. Scientific Work: The Influence of
Implementation of Quality Control Circle on The Job Performance of
Employees (1991); Human Resource Strategy Dimension & Technology
Transfer Strategy As Determinant of Corporate Performance based Balanced
Scorecard (1999); Quality of work life, Organizational Citizenship,
Employee engagement, total performance scorecard (2012).
Rudiyanto profile which contains their education details,
their publications, research work, membership,
achievements, with photo that will be maximum 200-400
words. Rudiyanto, Born in Bandung on June 24, 1968,
completed his Bachelor's degree in Petroleum Engineering
Study Program (Bachelor of Engineering - Ir.) At the
Mineral Engineering Faculty of the Yogyakarta National Development
University, 1995 and Baccalaureate (Dip. ISM.) In International Safety
Management from the International Institute of Risk and Safety
Management, British Safety Council, United Kingdom, 1999. Master of
Business Administration (S2-MBA) Program in the Postgraduate Program
of IPMI - Monash University Australia, in the field of International Business
(International Business) 2003. Doctoral Program (S3) in Administrative
Studies, Business Administration Concentration in Padjadjaran University,
2017. Education informally obtained by Certified Executive Leadership at
Certified Leadership Development Institute, Jakarta 2000 and Leadership
Education for SOEs at the National Defense Institute (Lemhanas), Jakarta
2002.
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Photo
hoto
Arief Prayitno, Arief Prayitno, born in Cirebon, 16
April 1963. Completed Bachelor (S.IP-S1) in the Public
Administration Study Program (S1) of the Open
University, 2004 and Bachelor of Law (SH) in the Law
Studies Program (SH-S1) of the University Slamet
Riyadi Surakarta, 2004. Masters Program in Humanities
(M.Hum-S2), concentration in Business Law at Gajah Mada University,
2007. Doctoral Program (S3) in Administrative Studies, Business
Administration Concentration in Padjadjaran University, 2017.
Dadang Amiruddin Dadang Amiruddin, born in
Cianjur, 16 August 1970. He is a Doctoral Student
Program in Business Administration, Faculty of Social
and Political Sciences University of Padjadjaran (2018
present). Undergraduate: Information System, University
of Gunadarma Jakarta (1994). Postgraduate: Magister Management of
Information System, University of Budi Luhur Jakarta (2004). He is also a
lecturer at Computer Science University of Banten Jaya and member of
Lecturer Association of Republic Indonesia (2019 2022).Expert in
Enterprise Resource Planning (ERP/SAP) and Information Technology
Project Management. Area of interest: Business Administration Science,
Information Technology and Human Capital Management. Project
assignment: Project Manager, CAP Warehouse Automation Project (2017
2018); Team Lead, SAP Project System module SAP Project (2013); Team
Lead, SAP Project in Petrokimia Butadiene Indonesia (2012 2013); Team
Lead, SAP Project in PT. Styrindo Mono Indonesia (2010 - 2011); Team
Lead, SAP Integration Project in PT. Chandra Asri and PT. Tripolyta
Indonesia (2010 - 2011); Team Lead, One full cycle SAP implementation
CHAMPIONS Project (2007 2008).
Tita Rosita Started working as a Teaching Staff at the
Universitas Terbuka FKIP, in 1984, Secretary of the
Department at the Faculty of Education FKIP,
1999-2000, Member of the Universitas Terbuka Senate,
1999-2000, Secretary of the Universitas Terbuka Senate
and Senate Member, 2004-2006, Secretary Open
University Foundation Supervisory Board, 2007-2010, Head of the
Universitas Terbuka Teaching and Education Masters Program,
2004-Present. Excellent research conducted, the effect of leader’s
responsibility, democratization climate and intelligence organization
evaluation to proffesional attitude of lecturers at kopertis wilayah IV (2004).
ResearchGate has not been able to resolve any citations for this publication.
Article
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Organizational competences are essential sources of competitive advantage and thus are key drivers of competitive strategies for knowledge-intensive companies like automotive manufacturers. In order to cope with increasing market complexity and dynamism, reduced development times, and relentless cost pressures in a highly competitive environment, knowledge-driven companies need to understand how to be proactive in building and leveraging the competences they will need to be successful in the future, especially within their product development activities. To the managers become proactive in identifying and building useful future competences, the dynamic and systemic perspectives of competence-based strategic management provide a framework for analysis that can help managers to look beyond their organizations current competences and identify organizational competences that will be needed in the future. Competence theory emphasizes that an organizations competences are dynamic and constantly need to be updated and reconfigured to adjust to the competitive dynamics of an industry Any methodology for identifying future competence needs must begin with some means for identifying strategic gaps between the competences a firm has now and the competences it will need in the future. This paper describes a technology and market roadmap-based methodology for forecasting a firm's future competence needs-the competences a firm will need to start developing now in order to meet expected market demands in the future. The methodology proposed here is applied and, we believe, validated through application to a competence planning process in a German luxury car manufacturer.
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