The effect of work motivation, work discipline, and competence on employee performance

Author: 
Ignatius Jeffrey and Marta Herdian Dinata

Bitung Branch of PT. Midi Utama Indonesia, Tbk has experienced a decline in its performance. Overall, the results in the very good category of employee performance appraisal have decreased by 8.93% from 2015 to 2016. This declining trend affected the interbranch competitiveness which also affected the competitiveness of the company compared withits competitors. The objective ofthis study was to determine what factors can affect the decline in work performance. Of the several factors influencing the decline in work performance, the authors classified them into three (3) factors; Work Motivation, Work Discipline, and Competence. This descriptive study used quantitative method through surveys and data collection by questionnaires. The sample of this research was 96 employees. The sample of this research was determined using Slovin’s Formula, generating the sample of 96 people. Independent variables were Work Motivation (X1), Work Discipline (X2), and Competence (X3), and dependent variable was Employee Performance (Y). The data collected were processed using multiple linear regression method. The findings of this study showed that the Work Motivation, Work Discipline, and Competence variables simultaneously had a positive and significant influence on the Employee Performance. Partially, the Work Motivation variable had a positive and significant influence on the Employee Performance; Work Discipline had a positive and significant influence on Employee Performance, and the Competence had a positive and significant influence on the Employee Performance. This study concluded that an effective management in the sub-variables of Work Motivation, Work Discipline and Competence will be able to enhance the Employee Performance and ultimately alsoraise the competitiveness of the company and increases the branch revenues.

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DOI: 
DOI: http://dx.doi.org/10.24327/ijcar.2017.7307.1120
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