Corresponding Author: Nabila Prajnaparamita Leman
E-mail: [email protected]
INTRODUCTION
The Human Resources function has evolved to reach more
effectiveness in the corporate world. Today, Human Resources focus on five
major components: recruitment and selection, training and development, pay and
benefit, performance appraisal, and labour relation (Touma, 2022). Performance appraisal plays a significant part in
evaluating the enterprise�s achievement toward the targets. Further,
performance appraisal is also used to determine employees� contribution to
supporting the enterprise�s targets achievements. This practice is also known
as employee performance management.
Employee performance management is one of the most effective
Human Resources processes which can guide employee performance and have an
immensely positive effect on organizational success (Neher & Maley,
2020). Successful organizations were those with the highest
return on equity and those who had established a performance management system
�aligning� every aspect of the organization from top management to the factory
floor (Buya, 2014). Thus, effective performance management is needed as
a source of a sustainable competitive advantage (Ong & Mahazan,
2020). As corporations desire higher business performance
and results, they need clear goals and strategies. An organization must set
goals to motivate employees and clarify their role perceptions by establishing
performance objectives (Rifa�i & Fadhli,
2013). It will improve employee performance in two ways: by
amplifying the intensity & persistence of effort and giving employees
clearer role perceptions so that their actions are compatible to their behavior
that will improve work performance.
Usually, one Corporation has more than one fundamental
goal to be achieved in a certain period. It is often led to being
uncontrollable, which means that every Corporation should use a measurable way
to keep their performance on track with the goals set. Effective performance
management is essential to businesses as it helps them align their employees,
resources, and systems to meet their strategic objectives (Sunarsi, 2018). It works as a dashboard, too, providing an early
warning of potential problems and allowing managers to know when they must
adjust to keep a business on track. Organizations that get performance
management right become formidable competitive machines (Lestari, 2019).
In emerging markets, performance management is
considered a participative system, continuous and future-oriented, as an
ongoing cycle of criteria settings, monitorization, evaluations, diagnosis and
improvements, action plans, and development resources (Vosloban, 2012). The more the employees exceed expectations, the more
excellent company's performance, and achievements. Thus, a strong company will
always attract and retain talent. Several contributing factors to maintaining
and improving employee performance include motivation. Motivation as a
meaningful construct is a central pillar in the workplace (Herzberg, 2017). Thus, motivating employees is a challenge as it has
what it takes to define employee satisfaction in the workplace.
PT Bio Farma (Persero) is a life science company
specializing in vaccine research, development, and production based in Bandung,
West Java, Indonesia. When established in 1890 during the Dutch Colonialism
era, Bio Farma was named Parc Vaccinogene and was in Batavia (now Jakarta). In
1895, the company was known as Parc Vaccinogene en Instituut Pasteur, and by
1902 it had changed its name to Landskoepoek Inrichting en Instituut Pasteur.
Since then, vaccine research, development, and production have been operated in
Bandung.
Under Japanese Colonialism in 1942, Bio Farma changed
its name to Bandung Boeki Kenkyushoo, which Kikuo Kirauchi led. In 1945, when
Dutch Colonialism entered, Bio Farma was named Landskoepoek Inrichting en
Instituut Pasteur again. The operation was moved to Klaten, Central Java. At
that time, Bio Farma was led by R.M. Sardjito, the first Indonesian who led the
vaccine company.
In 1955, Indonesia took over the only vaccine company
from Dutch ownership. The company was operated under the name of Perusahaan
Negara Pasteur until 1961 the government changed the company name to Perusahaan
Negara Bio Farma. Seventeen years later, based on Government Regulation no. 26,
the year 1978, the company was recognized as Perusahaan Umum (Perum) Bio Farma.
In 1997, Perum Bio Farma was changed to PT Bio Farma (Persero) based on
Government Regulation no. 1 the year 1997, with 100% ownership to the state,
made Bio Farma the State-Owned Enterprise. In 2020, Bio Farma was formed as the
Parent of Pharmacy Holding State-Owned Enterprises (Holding BUMN Farmasi) until
today.
As the Parent of Pharmacy Holding State-Owned
Enterprises, Bio Farma owns three subsidiaries: Kimia Farma, which focuses on
prescription drugs/medicines production; Indofarma, which focuses on herbal
medicines production; and Inuki, which focuses on the nuclear technology
industry. In comparison, Bio Farma focuses its business on life science
research, development, and production, mainly on vaccines and sera.
Bio Farma is Indonesia's most prominent vaccine
corporation (Iswati et al., 2022). It has two locations, 91,058m2 in Pasteur Area for
production facilities, research & development, and administration support
and 282,441m2 in Lembang Area for animal breeding. Supported by 1,300
employees, Bio Farma has fulfilled National essential vaccines necessities and
has exported its vaccines to more than 150 countries and 3,200 million dosages
annually. In 132 years, Bio Farma has produced bacterial vaccines, viral
vaccines, and diagnostic kits and provided healthcare services, especially
vaccination services.
Bio Farma has launched several vaccines that helped
the world to eradicate some diseases and continue to contribute massively to
fulfilling national vaccine necessities as well as international up to more
than 150 countries worldwide. With such success stories, Bio Farma plans to
transform into a world-class life-science company focusing on vaccines and
other life-science products.
To realize the plan, Bio Farma needs to arrange the
Company's Long-Term Plan (RJPP) and Company Work Plan and Budget (RKAP) to see
how feasible and achievable the plans are. The big project needs to be
translated into a Corporate Strategic Plan to become the Corporate's Key
Performance Indicator (KPI).
Philpott and Sheppard (1992) define performance
management as a systematic approach to improve performance in the level of
business and team in order to achieve business goals (Khan et al., 2014). The implementing an effective performance management
system will ensure an effective employee performance level that led to the
overall organization performance (Andriani et al., 2022). The performance management system can be performed
using Key Performance Indicator (KPI). KPI allows the management to control and
track the targets achieved at a certain period. Of course, in achieving the
targets, the top management needs help to do it. They need support from their
lower-level managers and staff to realize the desired targets. The system that
regulates the evaluation through the KPI concept is known as Performance
Management System (PMS). To achieve the target, the Corporate's KPI will often
be cascaded from the lower-level managers to the staff so that the daily job
performed by the employees supports the Corporation's targets. The use of KPIs
also enables the management to evaluate the performance of its
subordinates/staff or lower-level managers.
Figure
1. Corporation vs Employee KPI Scores
Starting in 2019, Bio Farma applied Performance
Management Systems using the KPI method based on the Balanced Scorecard concept,
which consists of 4 perspectives: Financial, Customer, Internal Process,
Learning & Growth (Grigoroudis et al.,
2012). In 2019 and 2020, all employees put their KPIs based
on their job descriptions. Back then, performance appraisal results were not
connected to the remuneration system, so many employees did not care about
their achievements. As a result, the KPI scores were normative. The KPI
achievement of the Corporation in 2019 was 93, followed by 82 in 2020 and 93 in
2021. However, employee performance at Bio Farma experienced a decline year by
year. In 2019, the average KPI results were 90, which fell to 81 in 2020. Due
to this condition, in 2021 Performance Management Unit proposed the KPI
cascading method. The employees were requested to create the KPI based on the
KPI set for their superiors, hoping that it would generate conformity between
the Corporation's KPI achievements and boost Employees' KPI achievements.
However, in 2021 the average employee�s KPI scores continue to decrease. In
2021, Corporation's KPI score was 93, while most employees' scores only reached
80.
These three years of KPI scoring show that the
employees' KPI continues to fall. Thus, management should pay more attention to
this condition because decreasing employee performance may also affect a
corporation�s performance.
METHOD
This research uses both quantitative and qualitative
methods. The quantitative approach is used to collect and interpret the data.
At the same time, the qualitative method describes and validates the research
result. Data collection
instruments are illustrated as follows.
Figure 2. Data Collection Method
The
above diagram explains that the data collection method is done by 2 (two) kinds
of primary and secondary data. According to (Gog, 2015), preliminary data is collected specifically for the
research project. This study gathers the primary data through observation, questionnaire/survey,
and interview methods. In contrast, secondary data is already collected in some
contexts other than the present study (Robinson, 2014). It provides the necessary background information,
builds credibility for the research report, and helps to clarify the problem
during the exploratory research process. The author uses the related company�s
internal documentation to collect secondary data.
RESULTS AND DISCUSSION
The descriptive analysis will explain the outcome based on frequencies and
percentages. Next step, the study will be continued by describing the
instrument's degree of correlation and reliability based on the Pearson Correlation
coefficient and Cronbach Alpha.
The
Influence of Shared Values on Employee Performance
Table 1. Correlation Matrix of Shared
Values & Employee Performance
|
|
Shared
Values
|
Employee Performance
|
|
Shared
Values
|
Pearson Correlation
|
1
|
.626**
|
|
|
Sig. (2-tailed)
|
|
.000
|
|
|
N
|
125
|
125
|
|
Employee
Performance Result
|
Pearson Correlation
|
.626**
|
1
|
|
Sig. (2-tailed)
|
.000
|
|
|
|
N
|
125
|
125
|
**. Correlation is significant at the 0.01 level (2-tailed).
The result in Table 1. is calculated
using the statistics software of SPSS. According to the statistical result, the
relationship between variables of shared values and employee performance is proven
to have a significant positive relationship (r = 0.626, p < 0.05). With r =
0.626, it demonstrates that those two variables are related. Thus, shared
values have a significant influence on employee performance. This significant
relation describes that if the shared values internalization is done correctly,
it will positively impact employee performance.
To determine the validity of the above result,
a Sig 2-tailed value is used. An instrument or data is valid if the Sig
2-tailed value is under 0.05 (Sekaran, 2006). Thus, based on Table 1. with p
< 0.05, the statement is valid and can be used to measure the relationship.
In performing the reliability test, Cronbach�s Alpha Coefficient was calculated
and resulted as follows.
Table 2. Cronbach�s Alpha Coefficient for Shared Values Variable
|
Cronbach's
Alpha
|
Cronbach's
Alpha Based on Standardized Items
|
N of Items
|
|
.963
|
.964
|
18
|
Table 2. shows the result of the reliability test coefficient. In
gathering data regarding the shared values variable, this research used 18
questions on the survey and resulting in Cronbach�s Alpha coefficient of 0.964.
Cronbach�s Alpha Coefficient shows that the result is greater than 0.8. Thus, the
result is categorized as excellent, which means that the survey data has very
high internal consistency.
The Influence of
Leadership Style on Employee Performance
Table 3. Correlation Matrix of Leadership Style & Organizational Culture
|
|
Leadership Style
|
Employee Performance
|
|
Leadership
Style
|
Pearson Correlation
|
1
|
.582**
|
|
|
Sig. (2-tailed)
|
|
.000
|
|
|
N
|
125
|
125
|
|
Employee
Performance Result
|
Pearson Correlation
|
.582**
|
1
|
|
Sig. (2-tailed)
|
.000
|
|
|
|
N
|
125
|
125
|
**. Correlation is significant at the 0.01 level (2-tailed).
The result in Table 3. is calculated using the statistics
software of SPSS. According to
the result, the relationship between leadership variables and employee
performance has a significant positive relationship (r = 0.582, p < 0.05).
With r = 0.582, it proves that those two variables are moderately related.
Thus, leadership style has a significant influence on employee performance.
This significant relation shows that if the leadership practice is done
correctly, it will moderately impact employee performance.
To determine the validity of the above result,
a Sig 2-tailed value is used.
Thus, based on Table 3. with p < 0.05, the statement is valid and can be
used to measure the relationship. In performing the reliability test,
Cronbach�s Alpha Coefficient was calculated and resulted as follows.
Table
4. Cronbach�s Alpha Coefficient for Leadership
Style Variable
|
Cronbach's Alpha
|
Cronbach's Alpha Based
on Standardized Items
|
N of Items
|
|
.803
|
.804
|
2
|
Table 4. �shows the result of the reliability test
coefficient. In gathering data regarding the leadership style variable, this
research uses 2 questions on the survey, which resulted in Cronbach�s Alpha
coefficient of 0.804. Cronbach�s Alpha Coefficient shows that the result is
more significant than 0.8. Thus, the result is categorized as excellent, which
means that the survey data has very high internal consistency.
The Influence of Organizational Culture on Employee Performance
Table 5. Correlation Matrix
of Organizational Culture
& Employee Performance
|
|
Organizational Culture
|
Employee Performance
|
|
Organizational Culture
|
Pearson Correlation
|
1
|
.753**
|
|
|
Sig. (2-tailed)
|
|
.000
|
|
|
N
|
125
|
125
|
|
Employee Performance Result
|
Pearson Correlation
|
.753**
|
1
|
|
Sig. (2-tailed)
|
.000
|
|
|
|
N
|
125
|
125
|
**. Correlation is significant at the 0.01 level (2-tailed).
The result in Table 5. is calculated
using the statistics software of SPSS. Based on
the result, it is found that the relationship between variables of organizational
culture and employee performance is proven to have a significant positive
relationship (r = 0.753, p < 0.05). With r > 0.6, it proves that those
variables are related. Thus, organizational culture significantly influences
perceptions of organizational practices and employee motivation. This
significant relation implies that if the organizational culture is internalized
correctly, it will positively impact the perception of organizational practices
and employee motivation.
To determine the validity of the above result,
a Sig 2-tailed value is used. Thus, based on Table 5. with p < 0.05, the
statement is valid and can be used to measure the relationship. In performing
the reliability test to test the instrument's consistency, Cronbach�s Alpha
Coefficient was calculated and resulted as follows.
Table
6. Cronbach�s Alpha Coefficient for Organizational Culture Variable
|
Cronbach's Alpha
|
Cronbach's Alpha Based on Standardized Items
|
N of Items
|
|
.868
|
.868
|
5
|
Table 6. shows the result of the
reliability test coefficient. In gathering data regarding organizational
culture variables, this research uses 5 questions on the survey, resulting in
Cronbach�s Alpha coefficient of 0.868. Cronbach�s Alpha Coefficient result is
more significant than 0.8. Thus, the result is categorized as excellent, which
means that the survey data has very high internal consistency.
The Influence of Perception of Organizational Practices on
Employee Performance
Table 7. Correlation Matrix of Perception of Organizational Practices and Employee Performance
|
|
Perception of Organizational
Practices
|
Employee Performance
|
|
Perception of Organizational
Practices
|
Pearson Correlation
|
1
|
.696**
|
|
Sig. (2-tailed)
|
|
.000
|
|
|
N
|
125
|
125
|
|
Employee Performance Result
|
Pearson Correlation
|
.696**
|
1
|
|
Sig. (2-tailed)
|
.000
|
|
|
|
N
|
125
|
125
|
**. Correlation is significant at the 0.01 level (2-tailed).
The result in Table 7. is calculated
using the statistics software of SPSS. Based on
the result, it is found that the relationship between variables of perception
of organizational practices and employee performance is proven to have a
significant positive relationship (r = 0.696, p < 0.05). With r > 0.6, it
proves that those variables are moderately related. Thus, the perception of
organizational practices significantly influences employee performance. This
significant relation implies that if the company maintains a good perception of
organizational practices, it will also moderately impact employee performance.
To determine the validity of the above result,
a Sig 2-tailed value is used. Thus, based on Table 7 with p < 0.05, the
statement is valid and can be used to measure the relationship. In performing
the reliability test, Cronbach�s Alpha Coefficient was calculated and resulted
as follows.
Table
8. Cronbach�s Alpha Coefficient for Perception of Organizational Practices
Variable
|
Cronbach's Alpha
|
Cronbach's Alpha Based on Standardized Items
|
N of Items
|
|
.813
|
.812
|
5
|
Table 8. shows the result of the
reliability test coefficient. In gathering data regarding the perception of organizational
practices variable, this research uses 5 questions on the survey and results in
the Cronbach�s Alpha coefficient of 0.812. Cronbach�s Alpha Coefficient result
is more significant than 0.8. Thus, the result is categorized as excellent,
which means that the survey data has very high internal consistency.
The Influence of Employee Motivation on Employee Performance
Result
Table 9. Correlation Matrix
of Employee Motivation and Employee Performance
|
|
Employee�� Motivation
|
Employee
Performance
Result
|
|
Employee Motivation
|
Pearson Correlation
|
1
|
.777**
|
|
|
Sig. (2-tailed)
|
|
.000
|
|
|
N
|
125
|
125
|
|
Employee
Performance Result
|
Pearson Correlation
|
.777**
|
1
|
|
Sig. (2-tailed)
|
.000
|
|
|
|
N
|
125
|
125
|
**. Correlation is significant at the 0.01 level (2-tailed)
The correlation test results in Table 9.
are calculated using the statistics software of SPSS. According to the result, it
is found that the relationship between variables of perception of
organizational practices and employee performance is proved to have a
significant positive relationship (r = 0.777, p < 0.05). With r > 0.6, it
proves that those variables are moderately related. Thus, employee motivation
has a significant influence on employee performance. This significant relation shows
that if the company maintains employee motivation, it will also moderately
impact employee performance.
To determine the validity of the above result,
a Sig 2-tailed value is used. Thus, based on Table 10. with p < 0.05, the
statement is valid and can be used to measure the relationship. In performing
the reliability test, Cronbach�s Alpha Coefficient was calculated and resulted
as follows.
Table 10.
Cronbach�s Alpha Coefficient for Employee Performance Variable
|
Cronbach�s
Alpha
|
Cronbach's Alpha Based on Standardized Items
|
N of Items
|
|
.864
|
.865
|
5
|
Table 10. shows the result of the reliability test coefficient. In
gathering data regarding employee motivation variables, this research uses 5
questions on the survey, resulting in Cronbach�s Alpha coefficient of 0.864.
Cronbach�s Alpha Coefficient result is more significant than 0.8. Thus, the
result is categorized as excellent, which means that the survey data has very
high internal consistency.
The Influence of All Independent & Intervening Variables on
Employee Performance
Table
11. Correlation Matrix of All Independent and
Intervening
Variables and Employee Performance
|
|
Employee Performance Result
|
Shared Values, Leadership Style,
Organizational Culture, Perception of Organizational Values & Employee
Motivation
|
|
Employee Performance Result
|
Pearson Correlation
|
1
|
.782**
|
|
Sig. (2-tailed)
|
|
.000
|
|
|
N
|
125
|
125
|
|
Shared Values, Leadership Style,
Organizational Culture, Perception
of Organizational Values & Employee Motivation
|
Pearson Correlation
|
.782**
|
1
|
|
Sig. (2-tailed)
|
.000
|
|
|
N
|
125
|
125
|
**. Correlation is significant at the 0.01 level (2-tailed).
The result on Table 11. is calculated
using the statistical software of SPSS. According to the result, the relationship
between all independent and intervening variables and the dependent variable of
employee performance is proven to have a significant positive relationship (r =
0.782, p < 0.05). With r > 0.6, it proves that those variables are highly
related. Thus, all independent and intervening variables (shared values,
leadership style, organizational culture, perception of organizational
practices, and employee motivation) significantly influence employee
performance. This significant relation implies that if the company maintains
all the related variables, it will positively impact employee performance at
Bio Farma.
Further, to determine the validity of
the above result, a Sig 2-tailed value is used. Thus, based on Table 4.18. with
p < 0.05, the statement is valid and can be used to measure the
relationship. In performing the reliability test, Cronbach�s Alpha Coefficient
was calculated and resulted as follows.
Table
12. Cronbach�s Alpha Coefficient for Shared Values Variable
|
Cronbach's Alpha
|
Cronbach's Alpha Based on Standardized Items
|
N of Items
|
|
.836
|
.839
|
5
|
Table 12. shows the result of the
reliability test coefficient. In gathering data regarding employee performance
variables, this research used 5 questions on the survey, which resulted in
Cronbach�s Alpha coefficient of 0.839. Cronbach�s Alpha Coefficient is more significant
than 0.8. Thus, the result is categorized as excellent, which means that the
survey data has very high internal consistency.
Priority Analysis
After defining and analyzing the survey
results using statistical tools, all the research variables are translated into
matrix priority where X-axis represents the priority level based on Pearson
correlation. In contrast, Y-axis defines impact level with the average mean
from the questionnaires. The result of priority analysis will be used to decide
which variables have a high impact on employee performance and require
immediate attention and implementation planning. The data below will be used to
define the priority matrix.
Table 13. Priority Matrix Data
|
Variables
|
Priority
(X-axis)
|
Impact (Y-axis)
|
|
Shared Values
|
4.47
|
0.63
|
|
Leadership Style
|
3.85
|
0.58
|
|
Organizational Culture
|
4.22
|
0.75
|
|
Perception
of Organizational Practices
|
3.75
|
0.70
|
|
Employee Motivation
|
3.73
|
0.77
|
Based on the information presented in
table 13, Priority data as an X-axis is obtained from the correlation of each
variable on employee performance. This correlation is obtained from Pearson
Correlation using statistical tools. At the same time, Impact data as a Y-axis
is obtained from the mean of survey results on each variable. Further, these
data will be mapped into the priority matrix, as presented in figure 1. below.
Figure
1. Priority Matrix
The priority matrix shown in Figure 1.
is divided into 4 (four) quadrants. The first quadrant is defined as High
Impact Low Priority, followed by High Impact High Priority as the second
quadrant. The third quadrant is Low Impact High Priority, and the fourth is the
Low Impact Low Priority quadrant. The explanation on each quadrant will be
explained as follows.
a. High Impact Low Priority. This quadrant
defines the research variable with a high correlation to employee performance.
However, it needs low urgency for further actions to support employee
performance. In this research, organizational culture is categorized into this
quadrant.
b. High Impact High Priority. This quadrant
defines the research variable with a high correlation to employee performance
and high urgency for further actions to support employee performance. In this
research, employee motivation and perception of organizational practices are
categorized into this quadrant. Thus, these two variables must need an
immediate plan for improvement.
c. Low Impact High Priority. This quadrant
defines the research variable with a moderate correlation to employee
performance but high urgency for further actions to support employee
performance. In this research, leadership style is categorized into this
quadrant.
d. Low Impact Low Priority. This quadrant
defines the research variable with a moderate correlation to employee
performance and low urgency for further actions to support employee
performance. In this research, shared values are categorized into this
quadrant.
Based on figure 1. and the explanations
above. Thus, employee motivation and perception of organizational practices are
the priority variables to be improved to enhance employee performance results
at Bio Farma. Therefore, further plans and implementation should be based on
improving employee motivation and perception of organizational practices to
help boost employee performance at Bio Farma.
This research uses the conceptual
framework for employee performance as the dependent variable. This variable is
correlated by 5 (five) contributing dependent variables: Shared Values,
Leadership Style, Organizational Culture, Perception of Organizational
Practices, and Employee Motivation. A research survey is conducted to define
the correlation between variables, and the results are processed using
statistical tools. The statistical process results shows that all the
independent variables significantly contribute to the dependent variable, as
shown in Table 14.
Table
14. Summary of Pearson Correlation among Variables
|
|
Employee
Performance
|
|
Shared
Values
|
Pearson Correlation
|
.626**
|
|
|
Sig. (2-tailed)
|
.000
|
|
|
N
|
125
|
|
Leadership
Style
|
Pearson Correlation
|
.582**
|
|
|
Sig. (2-tailed)
|
.000
|
|
|
N
|
125
|
|
Organizational Culture
|
Pearson Correlation
|
.753**
|
|
|
Sig. (2-tailed)
|
.000
|
|
|
N
|
125
|
|
Perception of Organizational
Practices
|
Pearson Correlation
|
.696**
|
|
Sig. (2-tailed)
|
.000
|
|
|
N
|
125
|
|
Employee Motivation
|
Pearson Correlation
|
.777**
|
|
|
Sig. (2-tailed)
|
.000
|
|
|
N
|
125
|
|
Employee Performance
|
Pearson Correlation
|
1
|
|
|
Sig. (2-tailed)
|
|
|
|
N
|
125
|
From the presented correlation factors
among variables in table 14, the strongest correlation is found between
Employee Motivation and Employee Performance with a degree of Pearson
Correlation of 0.777, followed by Organizational Culture and Employee Performance
with a degree of Pearson Correlation of 0.753. In comparison, Perception of
Organizational Practices and Shared Values correlate with Employee Performance
with Pearson Correlation of 0.696 and 0.626, respectively. While the
relationship between Leadership Style and Employee Performance shows the lowest
correlation with the Pearson Correlation degree of 0.582. Thus, employee
motivation is the most critical factor affecting employee performance. However,
further analysis will be performed on the sub-chapters as follows to address
the correlation between each independent variable.
Correlation
Between Shared Values and Employee Performance
The first variable that will be analyzed
is Shared Values. Based on the statistical results processed by statistical
tools (SPSS), Shared Values significantly positively correlated with employee
performance with r = 0.626. Thus, an improvement in Shared Values
internalization increases employee performance.
While from the descriptive analysis, the
research found that the Shared Values internalization is considered positive,
with a mean of 4.47 out of 5.00. This means that the employees are exposed to
the Shared Values very well. The Shared Values at Bio Farma adapt AKHLAK Core
Values of BUMN consists of Amanah, Kompeten, Harmonis, Loyal, Adaptif, and
Kolaboratif. However, there are still several issues with the Shared Values
practices at Bio Farma. Employees claimed they need to be more proactive to
create or drive something new for improvement at their work units. Further, the
culture of helping each other is still considered low at Bio Farma compared to
other aspects of core values AKHLAK.
From Priority Analysis, the shared value
variable is in the Low low-impact priority quadrant. Because the shared value
correlation to employee performance is considered moderate, the survey's mean
result is. It means that shared value is not the priority variable to take
action to improve employee performance at Bio Farma since it has good employee
survey results with a moderate correlation to the business issue.
In conclusion, shared values have a
significant positive relationship with employee performance, but with several
issues regarding proactive and helping each other culture.
Correlation Between Leadership Style and Employee Performance
The second variable that will be
analyzed is Leadership Style. Based on the statistical results processed by
statistical tools (SPSS), Shared Values significantly positively correlated
with employee performance with r = 0.582. Thus, an improvement in leadership
style increases employee performance.
According to the descriptive analysis,
the research found that the Shared Values internalization is considered
positive, with a mean of 3.85 out of 5.00. This means that the employees feel
that the leaders are inspirational at Bio Farma and become role models for
achieving and performing to the work target. However, their employees still
feel an atmosphere of trust and respect between the Board of Executives and
employees is yet to be its best practice.
From Priority Analysis, the shared value
variable is in the Low Impact High Priority quadrant. Because leadership style
correlation to employee performance is considered moderate, the mean result of
the survey shows the average results. It means that leadership may need the
urgency of an improvement plan to improve employee performance at Bio Farma,
but the impact is manageable.
In conclusion, the leadership style is
found to have a significant positive relationship with employee performance, but
with several issues regarding the atmosphere of trust and respect in the work
environment and the need for an inspirational leader.
Correlation Between Organizational Culture and Employee
Performance
The third variable that will be analyzed
is Organizational Culture. Based on the statistical results processed by
statistical tools (SPSS), Organizational Culture has a significant positive
correlation with employee performance with r = 0.753. Thus, an improvement in
organizational culture increases employee performance. While from the
descriptive analysis, the research found that the organizational culture is
considered positive, with a mean of 4.22 out of 5.00. This means that the
employees are exposed to the organizational culture very well. Shared Values
shape the organizational culture at Bio Farma that adapts AKHLAK Core Values of
BUMN consists of Amanah, Kompeten, Harmonis, Loyal, Adaptif, and Kolaboratif.
However, there are still several issues with the organizational culture
internalization at Bio Farma. Employees claimed they need to be more proactive
to create or drive something new for improvement at their work units. Further,
the employees feel that their work target is unclear.
From Priority Analysis, the
organizational culture variable is in the High Impact Low Priority quadrant.
Because corporate culture's correlation to employee performance is considered
high, the survey's mean result shows positive results. It means that the
organization has a significant impact on employee performance at Bio Farma but
needs no urgency for some actions to be taken for improvement soon.
In conclusion, the organizational
culture is found to have a significant positive relationship with employee
performance, but with several issues regarding improvement orientation and the
company�s business strategy directions.
Correlation
Perception of Organizational Practices and Employee Performance
The fourth variable that will be
analyzed is the Perception of Organizational Practices. Based on the
statistical results processed by statistical tools (SPSS), the perception of
organizational practices has a significant positive correlation with employee
performance, with r = 0.696. Thus, an improvement in the perception of
organizational practices increases employee performance.
While from the descriptive analysis, the
research found that the perception of organizational practices is considered
positive, with a mean of 3.75 out of 5.00. This means the employees feel that
the organizational practices have been carried out well enough. However,
employees still feel that they need improvement orientation and think that the
recent information in the company needs to be more transparent and socialized
adequately.
From Priority Analysis, the perception
of organizational practices variable is in the High Impact High Priority
quadrant. Because the perception of organizational practices' correlation to
employee performance is considered high, the mean result of the survey shows
lower results than the other variables do. It means that perception of
organizational practices is the priority variable to be taken action to improve
employee performance at Bio Farma since it has low survey results from the
employees with a high correlation to the business issue.
In conclusion, the perception of
organizational practices is found to have a significant positive relationship with
employee performance, but with several issues regarding improvement orientation
and information openness.
Correlation Between Employee Motivation and Employee Performance
The last variable that will be analyzed
is Employee Motivation. Based on the statistical results processed by
statistical tools (SPSS), employee motivation has a significant positive
correlation with employee performance, with r = 0.777. Thus, an improvement in
employee motivation enhances employee performance.
While from the descriptive analysis, the
research found that the employee motivation factor is considered positive, with
a mean of 3.73 out of 5.00. This means that the employees rate the employee
motivation as good enough. However, the major problem with employee motivation
comes from career opportunities and remuneration. Most respondents argue that
the promotion opportunity and remuneration system still need to represent the
best system it should be.
From Priority Analysis, the employee
motivation variable is in the High Impact High Priority quadrant. Because
employee motivation's correlation to employee performance is considered high,
the survey's mean result shows lower results than the other variables. It means
that employee motivation is the priority variable to be taken action to improve
employee performance at Bio Farma since it has low survey results from the
employees with a high correlation to the business issue.
In conclusion, employee motivation is
found to have a significant positive relationship with employee performance, but
with several issues regarding career opportunities and remuneration systems.
CONCLUSION
There 5 (five) variables
correlate and influence the decline of employee performance at Bio Farma. They
are the internalization of shared values, leadership style practices,
organizational culture, perception of organizational practices, and employee
motivation. However, this study found that employee motivation is the most
correlated and impactful variable influencing declining employee performance at
Bio Farma. Based on this study, the employee motivation variable is formed by
at least 2 (two) major contributing factors, which are career opportunity and
the remuneration system at Bio Farma. To increase employee performance, the
stakeholder might improve these two areas. To increase employee performance at
Bio Farma, this study proposes improving the career opportunity system by
improving talent pool data accuracy and implementing a Competencies-Based
Assessment for all employees. This assessment enables Human Capital Division to
gain more accurate talent pool data that will impact future Bio Farma employee
career decision-making.
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