BUS603: Managing People

Research conducted by employees of PT. Bank XYZ (Persero) Tbk or known as Bank BTN is a limited liability company engaged in banking services. Bank BTN is an Indonesian State-Owned Enterprise established in 1987 under the name Postspaar Bank located in Batavia. Currently, Bank BTN has become one of the leading banks in Indonesia, with total assets as of November 2017 amounting to Rp. 240.82 trillion has a network of 5 regional offices consisting of 73 conventional branch offices and 24 sharia branch offices spread throughout Indonesia.

The focus of attention in the implementation of this study is limited to only 4 variables of compensation, work motivation, job satisfaction and employee performance. The study was conducted for 12 months from December 2016 to December 2017. It used a survey method comprised of primary data collected from statements by individual respondents. The study also used a quantitative research approach with emphasis on numerical assessment over the phenomena studied.

Population in this research is the employees of the Branch Office of PT. Bank XYZ (Persero) Tbk in the working area of Regional Office I located in DKI Jakarta, West Java and Banten, includes 24 Branch Offices consisting of 7 Main KC, 4 KC Class I, 8 KC Class II and 5 Class III KC. The total number of employees of the Branch Office located in the working area of Regional Office I is 2,759 persons, consisting of 212 persons with managerial positions and 2,547 persons with non-managerial positions.

Sampling using simple random sampling technique where this technique is used because the sampling consists of 24 branches. Calculation of the number of samples in this study will use the Slovin formula. With the desired error rate is 5%, then by simple random samples obtained as many as 346 respondents with non-managerial positions.

Data collection is done by using questionnaires that is a method of data collection by spreading the list of statements to all respondents. In this study data obtained directly from the respondents by distributing questionnaires or statements list on the respondents in the form of a sample of a population, so the data used is primary data.

The data collection technique used in this research was survey method, with closed questionnaire tool, consisting of two parts, the first part consisting of statements to obtain personal data of respondent and second part used to get data about the dimensions of construction developed in this study, in which respondents chose one of the answers that have been provided, with alternative answers consisting of intervals worth 1-5.

The measurement scale used for the assessment of the questionnaire is the Likert Scale, and is used to measure attitudes, opinions and perceptions of a person or a group of people regarding social phenomena. In this social research has been specified specifically by the researchers, hereinafter referred to as research variables. The answer of each instrument item using the Likert Scale, has a graduation from very positive to very negative, or interval (1-5). Scale 1 for level of assessment " strongly disagree", scale 2 "disagree", scale 3 "neutral", scale 4 "agree" and scale 5 "strongly agree".

This research uses SEM (Structural Equation Modeling) method. According to Ghozali (Siswoyo Haryono), SEM is a multivariate analysis technique that allows researchers to examine the relationships between complex variables, both recursive and non-recursive to obtain a comprehensive picture of the overall model. Such complex relationships can be constructed from one or more dependent variables with one or more independent variables. Each variable can be a factor (constructed construct of some indicator). The flow diagram in this study is presented in Figure 1.

Figure 1: Flow Chart of Research

Testing Validity and Reliability of Research Instruments

Validity and reliability test results for the compensation variable show all statements used in this compensation indicator have validity value greater than 0.300 and declared valid. While the reliability value of this indicator is 0.932. This value is greater than 0.700 which becomes the minimum restriction of reliability. Job motivation variable shows that all questions used in this work motivation indicator have a validity values greater than 0.300 and are declared valid. While the reliability value of this indicator is 0.936. This value is greater than 0.700 which becomes the minimum restriction of reliability. Job satisfaction variable shows all statements used in this indicator has a validity value greater than 0.300 and declared valid. While the reliability value of this indicator is 0.951. This value is greater than 0.700 which becomes the minimum restriction of reliability. The employee performance variable shows all statements used in this indicator have validity values greater than 0.300 and are declared valid. While the reliability value of this indicator is 0.952. This value is greater than 0.700 which becomes the minimum restriction of reliability. Based on the above results, it is concluded that the variable compensation, work motivation, job satisfaction and employee performance have met the requirements of validity and reliability.