International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)

Research Article: 2021 Vol: 25 Issue: 5

Factors Affecting Civil Servant Performance in Indonesia

Setyo Riyanto, Universitas Mercu Buana

Johan Hendri Prasetyo, Universitas Nusa Mandiri

Abstract

Good governance requires the maximum performance of its employees. This study aims to determine the factors that affect the performance of civil servants in Indonesia. This study's sample consisted of 200 civil servants in various ministries and government agencies in Indonesia. The data analysis method used was SEM-PLS to prove the research hypothesis. The results showed that partially employee commitment, employee motivation, and employee discipline played a role in improving civil servants' performance. Partially employee commitment and employee motivation play a role in enhancing civil servant discipline. Employee discipline can partially mediate the effect of employee commitment and employee motivation on civil servants' performance. The results of this study indicate that increased employee commitment through a sound communication system can improve civil servants' performance, improvisation of the performance-based allowance system will be able to motivate employees to improve their performance. Moreover, the starting point shown by the leadership will be able to be an excellent example for their subordinates have better work discipline.

INTRODUCTION

Employee performance is one of the essential aspects of a government organization used as the primary benchmark for measuring human resources' contribution in ministries and government agencies in Indonesia. Government agencies demand to provide excellent governance services. Bureaucratic reform is one of the Government's efforts to realize good governance and carry out fundamental reforms and changes to the government system, especially those concerning the institutional (organizational), management, and human resources aspects of the civil apparatus.

It should note that civil servants in various ministries and government agencies in Indonesia must be competent, loyal, productive, and maximize their performance. Through an observation process from July 2020 to December 2020, we identified aspects that significantly influenced civil servants’ performance in several ministries and government agencies in Indonesia. From several aspects researched based on the pre-research that has been carrying out. It shows that civil servants' performance is greatly influenced by how well the employee motivates himself to work better and is committed to his organization, and carries out the mandate given to him with complete discipline and responsibility. Some more in-depth research shows that employee commitment to the organization will improve employee performance and even change the organization better than before (Curtis et al., 2009; Eliyana et al., 2019; Wim et al., 1998). The motivation of an employee can foster a sense of happiness and have an impact on improving performance and competitive advantage for the employees themselves (Riyanto et al., 2017; Suprapti et al., 2020; Curtis et al., 2009; Octaviannand et al., 2017; Hasanah & Lo, 2020; Widyanty et al., 2020). Public employees who have a high level of discipline will feel job satisfaction and morale to increase their performance (Suprapti et al., 2020; Hasanah & Lo, 2020). Based on these considerations, this research focuses on things that need to be done by ministries and government agencies in Indonesia to realize bureaucratic reform and good governance through various factors that affect civil servants' performance.

LITERATURE REVIEW

Employee Commitment (EC)

Commitment is the link between employees and organizations that functions as a determinant of the future of employees and organizations that involve employee involvement to contribute to the success of the organization as a form of employee dedication and loyalty to the organization (Chartier, 2018; Coe et al., 2008; McMurray et al., 2004). Commitment is the power that binds individuals to take action consisting of affective commitment, ongoing commitment, and normative commitment (Panaccio & Vandenberghe, 2009; Colquitt et al., 2019). In HRM practice, commitment is part of the psychological aspect for employees because it involves the rewards received for the hard work that has done so that it will increase job satisfaction, job happiness, and employee performance (Robertson & Cooper, 2011; Ito et al., 2013; Kraeger et al., 2017). Facts in the field also prove that commitment is an essential factor that is full of continuity and is related to the appreciation that determines an employee's decision to leave or stay in the company (Milkovich et al., 2014; Isse et al., 2018). Employee commitment depends on the organization's leadership and career path (Stewart & Brown, 2011; Hoffman, 2015; Çakmak-Otluo?lu, 2012). Several studies have found that employee commitment positively benefits the company to facilitate work motivation, instill company values, and strengthen relationships between employees to fulfill company goals (McMurray et al., 2004; Holland et al., 2011; Sarriera & Bedin, 2017). Facts in the field show that improving employee performance and company productivity is highly dependent on employee characteristics in solving work problems, cooperation between departments, leaders who give complete trust to employees, and employee commitment to team-based work organizations (Wickramasinghe & Wickramasinghe, 2011; Cobb et al., 1995; Georgiades, 2015). Commitment to organization is one of the main reasons employees remain, therefore companies must support employees by providing adequate rest time for each employee to reduce employee work stress (Hausknecht et al., 2009; Neininger et al., 2010; Noor, 2002; Ali et al., 2011). However, sometimes there are several obstacles that companies must face to create responsible employee commitment, such as limited access, perceived injustice by employees, and personal satisfaction. Therefore companies need to instill good corporate perceptions and values in employees to create positive feelings towards the organization so that it will create a feeling of pride in the company and can strengthen the relationship between employees and the company itself (Shorrock & Williams, 2016; Lai et al., 2010; Kjølsrød, 2019; Prasetyo et al., 2021; Marique et al., 2013; Neininger et al., 2010).

Employee Motivation (EM)

Motivation is a change in a person's attitude to take action/work to achieve a better balance (Saddawi-Konefka et al., 2017; Brower & Riba, 2017; Dal Forno & Merlone, 2010). Motivation arises when individuals seek optimal satisfaction with specific needs (Giauque et al., 2011). Motivation sees as a psychological characteristic that will help humans increase the degree of commitment and act as a stimulant to the need and desire to achieve something by increasing contextual conditions internalized by individuals (Majid et al., 2010; Kenny et al., 2010; Dimitrova, 2017). A person's motivation to pursue specific goals determined by situational stimuli, personal preferences, and the two's interaction. External factors such as organizational mission and transformational leadership also have the potential to increase motivation (Heckhausen & Heckhausen, 2008; Wright et al., 2011). Intrinsic motivation will create a feeling of pride for employees to improve their literacy. A well-integrated motivation will predict human behavior diversity, especially in the workplace (Lanfranchi et al., 2010; Ryan, 2010). According to SDT, a work climate that promotes the satisfaction of the three basic psychological needs (needs for autonomy, competence, and linkage) will increase employee intrinsic motivation, encourage complete internalization of extrinsic motivation, and ultimately result in important performance (Kuvaas & Dysvik, 2009). Several other studies have found that age positively correlated with internal work motivation. Likewise, individuals who have high welfare will have high intrinsic motivation (Bipp, 2010; Diener et al., 2010). In short, Flexner argues that the profession essentially involves intellectual operations with great individual responsibility. Therefore, mentoring can help in career aspirations, increase motivation, increase perceptions of organizational support and job satisfaction (Fong, 2014; Tabarsa & Nazari, 2016). The motivation for individual career actions reflected in their career goals, career rewards, and future career goals. Therefore, companies need to evaluate performance and salary levels with various assessment programs (Coetzee, 2014; Latukha, 2016).

Employee Discipline (ED)

Work discipline is identified as employee behavior to exercise self-control and moral reinforcement of company rules (Boyd, 1984; Bugdol, 2018). Besides, the discipline also needs supporting concepts such as career success and job success to improve employees' sustainable work (Keller et al., 2014; FIgari, 2011). Work discipline is a starting point and the key to success in increasing awareness of company regulations and impacting employee focus in improving their skills and work quality (Foucault, 1977; Mangan, 2009; Esbester, 2008; Prasetyo & Riyanto, 2019). Therefore, the company's work discipline policy must consider all employees' rights to create fairness principles that can account for. Will increase employee confidence in the company to work responsibly and want to be directly involved in the company's goals (Armstrong, 2006; Whittington et al., 2017; Presenza & Sheehan, 2018; Loi et al., 2006). Despite this seemingly progressive trend, social work is often perceived as a relatively conservative discipline because it is too concerned with social control and emphasizes fixing individual problems rather than structural social problems (Jones, 2009). Social work considers having no scientific discipline because it can change in a relatively short time. Therefore, in a company, a disciplinary authority is needed to form all employees' discipline to achieve the necessary stability and security and avoid disruptions that are always possible (Guzzetta, 2014; George, 2015; Hibou, 2009). Multidisciplinary refers to knowledge from various disciplines based on rules. Interdisciplinarity has the function of analyzing, synthesizing, and harmonizing interdisciplinary relations into a coordinated and coherent whole. Transdisciplinarity serves to integrate natural, social, and health sciences in the humanities and transcend their traditional boundaries (Brooks et al., 2017). Therefore, the need for discipline is significant for transformative learning in improving skills, competencies, and innovation in an economic and business context to provide high satisfaction and performance (Frønes, 2016; Rober, 2018; Giorgino, 2014).

Employee Performance (EP)

Taking too long to fix employee performance problems can cause other employees to give up and quit (Brazen, 2004). Thus, it is very likely that managers (and employees) perceive performance differently in different cultures, so that objective and measurable effort and performance criteria are needed (Varma et al., 2008). Companies with high-performance business strategies recognize the importance of a manager who can see talents, opportunities, and career paths for their employees. Therefore, today organizations need to focus on implementing HR strategies to improve employee performance through training, performance appraisal, compensation, career development, teamwork (Eigenhuis & Van Dijk, 2007; Thevanes & Mangaleswaran, 2018). Employee performance management is a concept that includes various organizational activities to provide appraisals to employees so that they can apply them in the workplace to produce better performance (Fletcher, 2001; Decramer et al., 2012; Smith-Crowe et al., 2003, Woolliams, 2007). Performance appraisals increase employee motivation levels and encourage them to engage in innovative programs and facilitate the achievement of desired results. Meanwhile, performance reviews generate feedback, and performance improvement plans help employees develop skills that maximize their potential (Jiménez-Jiménez & Sanz-Valle, 2005; Cascio, 2014). The company always wants its employees to commit and instill organizational values to foster trust between the company and employees (Nygaard & Biong, 2010; Celep & Yilmazturk, 2012). To achieve a higher level of performance, companies need to understand, identify, and ensure functional areas and internal systems work effectively and efficiently (Aquila & Rice, 2012). Performance management is one of the components that need to improves in an organization, considering that performance management is an organizational way of communicating expectations and encouraging behavior to achieve goals, and identifying employees in career development programs (Pulakos, 2009; James & Lahti, 2011). Employee performance management is a much broader concept that includes various activities in which organizations seek to assess employees and develop their competencies, improve performance and distribute them in work (Decramer et al., 2012). The concept of numerical performance may not adequately describe the performance system so that involvement between management and employees is needed to build a positive work context and working relationship (Beamon, 1999; Huo, 2012; Imperatori, 2017). Therefore, further research needs regarding the desires/feelings of an employee related to their performance (Ho et al., 2011). There are various benefits of working from home for employees; this includes flexibility in working hours, work-life balance, and a higher level of performance (Timsal & Awais, 2016; Ward, 2017). The performance measurement that evaluates itself is not significantly different from the supervisor's assessment of the employee's job performance, namely by looking at the employee's role and involvement (Churchill et al., 1985; Yurchisin & Park, 2010; Kattenbach et al., 2010). Performance appraisal can also expand by granting authority/authority to lower-level managers through efforts to align internal processes and information systems with evaluating individual and organizational performance (Ganyam & Ivungu, 2019).

METHODOLOGY

This study uses a quantitative method with a causality approach. This study will determine the factors influencing civil servants' performance in Indonesia, such as employee commitment, employee motivation, and employee discipline. This research conduct on 200 respondents who are civil servants in various ministries and government agencies in Indonesia, consisting of the Ministry of Public Works and Public Housing of the Republic of Indonesia; Ministry of Villages, Development of Disadvantaged Areas, and Transmigration; Ministry of Cooperatives and SMEs, Ministry of Administrative Reform and Bureaucratic Reform of the Republic of Indonesia; and the Ministry of Health of the Republic of Indonesia. The technique used in this study is a non-probability sampling technique with snowball sampling techniques. The data collection method carry out by observation, online interviews, and questionnaires distributed via Google Form to research respondents who test using SEM-PLS with SmartPLS v.3 to test the hypothesis.

RESULTS AND DISCUSSION

Outer Model Test

They were testing the Outer Model of this study using the Confirmatory Factor Analysis (CFA) technique. The convergent validity test results show that the indicators EM2, EM3, WD3, WD4, EP4, and EP5 have a loading factor value < 0.5, so they removed from the model, and a second test carries out. In the second test, the results showed that all research indicators have a loading factor value of > 0.5. The discriminant validity test results show that the Fornell-lacker criterium value for each construct is greater than the correlation between one construct and another in the model. Based on these two tests, it concludes that all research indicators are declared valid (Table 1).

Reliability test results show that all research variables have a composite reliability value and cronbach's alpha > 0.7 or meet the criteria (Hair et al., 2010). Thus, all research variables were declared reliable (Table 2).

Inner Model testing of this research is done by evaluating the value of R2 , validating the model and predictive relevance, and evaluating the value of the path coefficient. Based on the results of the R2 evaluation, it found that the variables of employee commitment, employee motivation, and employee discipline influenced performance by 70%. Meanwhile, the simultaneous influence between employee commitment and employee motivation on employee discipline is not very influential (Table 3).

The results of model validation using GoF show a result of 0.505, concluding that the outer and inner models' combined performance is outstanding. The Q2 test results show a value of 0.846 > 0 so that the model is said to be feasible and has a relevant predictive value. The hypothesis testing results show that: Partially employee commitment, employee motivation, and employee discipline have a positive and significant effect on employee performance; Partially, employee commitment and employee motivation have a positive and significant effect on employee discipline. However, the path analysis results show that the indirect effect of employee commitment and employee motivation on employee performance through employee discipline's mediating role is smaller than the direct effect (Table 4).

The research results indicate that employee commitment has a positive and significant effect on employee performance. The findings of this study confirm several previous studies that state that employees' commitment to the organization will improve the performance of the employees themselves (Curtis et al., 2009; Eliyana et al., 2019). The findings of this study are also in line with Coe et al. (2008), which states that high employee commitment will contribute maximally to employees' success in carrying out their work and will have an impact on organizational success. It shows that commitment has a vital role in improving employee performance in government organizations in Indonesia. Ministries and government agencies need to pay attention to every component of employee commitment. It can increase by inculcating positive institutional perceptions and values in every civil servant to feel proud to be part of the organization and work better to advance the institutions they work for. The work commitment of civil servants can also increase through awards given to each employee's work to improve their performance and play an active role in improving governance and bureaucracy within the agency.

The research results indicate that employee motivation has a positive and significant effect on employee performance. This study's findings confirm several previous studies stating that employee work motivation will improve individual performance (Riyanto et al., 2017; Suprapti et al., 2020; Curtis et al., 2009; Octaviannand et al., 2017; Hasanah & Lo, 2020). This study's findings are also in line with Kuvaas & Dysvik (2009), which states the importance of employees' intrinsic and extrinsic motivation as part of the psychological need to produce an essential performance for themselves and the company. It shows that every government employee needs high work motivation to manage their work and the competencies they have to improve their performance. Civil servants' work motivation can increase by assessing the allowance system that each government agency has implemented. The new allowance system expects to be based on civil servants' performance to have more motivation to improve their performance. The research results indicate that employee motivation has a positive and significant effect on employee discipline. This study's findings confirm several previous studies that state that high employee motivation will improve employee work discipline itself (Hania & Bernardus, 2019; Uloli et al., 2019). This study's findings are also in line with the theory of Lanfranchi et al. (2010), which states that a person's motivation at work will foster their pride and increase utility/discipline at work. It shows that it is necessary to integrate employee motivation with agency goals in a government organization based on existing regulations. It is necessary to create a comfortable atmosphere at work and predict human behavior's diversity to comply with predetermined rules.

The research results indicate that employee discipline has a positive and significant effect on employee performance. This study's findings confirm several previous studies that state that employees who have a high level of discipline have high performance (Suprapti et al., 2020; Hasanah & Lo, 2020; Soegihartono, 2019). This study's findings are also in line with the theory of Esbester (2008), which states that discipline is the key to individual success. With discipline, a person can use all the abilities/talents that exist in him. It shows that work discipline is one of the most critical aspects of the organization to improve employees' performance and productivity. It will foster and create a good character for themselves to create positive actions at work and become an excellent example for their colleagues with good discipline. The research results indicate that employee discipline does not play a perfect role in mediating employee commitment on employee performance. This study's findings confirm several previous studies that state that works discipline can partially mediate employee commitment's effect on employee performance (Septiani et al., 2016; Soegihartono, 2019). This finding is also in line with the theory of Ito et al. (2013), which states that employee commitment to the organization is a psychological contract that represents employees and rewards their commitment and performance. It shows that there will be a culture of very close engagement with employee commitment, both between one employee and another and between employees and the company. Therefore, agencies must continue to support and monitor civil servants' benefits to create a responsible work commitment based on existing regulations to establish continuity/positive relationships within the agency.

The research results indicate that employee discipline does not play a perfect role in mediating employee motivation's influence on employee performance. This study's findings confirm the research of Hania & Bernardus (2019), which found that work discipline can partially mediate the effect of work motivation on employee performance. This finding is also in line with Heckhausen & Heckhausen's (2008) theory, which states that a person's motivation to achieve goals determines by situational stimuli and self-preferences, and their interactions. So there is a need for self-evaluation and support from the organization to achieve predetermined goals. It shows that motivation is a psychological aspect in a person that cannot ignore. With positive motivation, employees will foster a desire to take action according to the regulations to achieve the desired performance.

The research results indicate that employee commitment has a positive and significant effect on employee discipline. This study's findings confirm several previous studies stating that employee commitment will improve their work discipline (Rabiulkhri et al., 2019; Laura, 2015; Septiani et al., 2016). This study's findings are also in line with Chartier's (2018) theory, which states that commitment is a series of conscious and unconscious actions that aim to increase the relationship between individuals and organizations to become a good habit administrative regulations and managing the organization. It shows that the organization needs employee commitment in enforcing discipline and managing the organization to be even better. Therefore, in carrying out its bureaucracy, government agencies need to pay attention to justice aspects to each employee because commitment is one of the psychological aspects that need to instill in every employee to increase work discipline and foster pride in himself.

CONCLUSION

The results showed a positive and partially significant influence between employee commitment, employee motivation, and employee discipline on civil servants' performance. There is a partially positive and significant influence between employee commitment and employee motivation on employee discipline; Employee discipline can partially mediate the influence of employee commitment and employee motivation on civil servants' performance. This study's findings indicate that employee motivation directly influences the performance of civil servants in ministries and government agencies in Indonesia. This study's findings also confirm that employee discipline is not a mediator in influencing civil servants' performance because of its feeble effect

Ministries and government agencies in Indonesia need to increase downward communication, upward communication, horizontal communication, and diagonal communication in each agency to create bonds between employees and agencies and create a more comfortable work culture and work environment. Governments and government agencies in Indonesia need to improvise an allowance system based on employee performance to increase these employees' work motivation to achieve the desired performance. Department leaders in each agency expect to become the starting point for managing employees' behavior under them so that employees have positive figures that can imitate in increasing work discipline.

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