Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2021 Vol: 20 Issue: 6

The Effect of Competency, Emotional Intelligence, Education and Training on Employee Performance Mediated By Organizational Commitment at Pt. Mitra Kualitas Utama Jakarta

Edi Sugiono, National University

Anisa Ulfa, National University

Citation Information: Sugiono, E., & Ulfa, A. (2021). The effect of competency, emotional intelligence, education and training on employee performance mediated by organizational commitment at pt. Mitra kualitas utama Jakarta. Academy of Strategic Management Journal, 20(6), 1-8.

Abstract

The purpose of this study is to ascertain the effect of competence, emotional intelligence, education, and training on employee performance via organizational commitment. To complete the questionnaire, 180 respondents were chosen from the staff of PT. Mitra Kualitas Utama. The analytical technique utilized is descriptive analysis in conjunction with the Structural Equation Model (SEM). The findings indicate that competence, emotional intelligence, education, and training all have a considerable favorable influence on employee performance. Finally, organizational commitment acts as a mediator between competence, emotional intelligence, education, and training, and employee performance. This research may assist managers and organizational in identifying and managing the quality of current human resources and fostering employee commitment to the organizational in order to boost employee performance and help the business achieve its objectives.

Keywords

Competence, Emotional Intelligence, Education and Training, Employee Performance Organizational Commitment.

Introduction

The industrial revolution 4.0 era disturbs a variety of human activities, and the issue of human resources is critical to organizational success. Human resources contribute to an organizational’s direction and growth (Rohida, 2018). The performance quality is one determinants of company’s existence in fierce business competition, the increase in overall quality relates to quality of human resources of the individual (Gani et al., 2018). The organization will develop and survive if supported by competent employees in their fields (Ataunur & Ariyanto, 2016). Goleman (Bandi, 2019) confirmed the claim that 80% of superior performance can be achieved with emotional intelligence at top line rather than intellectual intelligence. The organizations use education and training to improve the employee performance. The education and training will encourage employees to produce better performance to achieve the organizational goals (Nababan et al., 2016).

There is the fluctuation of employee performance achievement at PT. Mitra Kualitas Utama for last three consecutive years. The average performance achievement of employees per year does not reach the maximum target and still far below 75%. This is homework for management of PT. Mitra Kualitas Utama to improve the employee performance by increasing competence, exploring emotional intelligence and improving employee quality through education and training.

There were many studies to examine skills, emotional intelligence and training in employee performance. One researcher found that competencies affect employee performance in a favorable and substantial way. Adversely, another researcher found that Employee performance is unaffected by competence.

Other researchers found that the employee performance was also affected by emotional intelligence (Widayati, 2016; Bandi, 2019). Adversely, emotional intelligence has no discernible influence on the performance of employees at the Inspectorate in South Kalimantan Province.

The other variables that influence the employee performance are education and training. Harjuni (2018); Wiguna (2015) found that education and training have a measurable beneficial impact on employee performance. Adversely another researcher found that education and training have no discernible impact on employee performance

The previous studies show the inconsistencies results. This raises a research gap. This study uses the organizational commitment variable as a mediating variable. Therefore, we researchers are interested to examine how companies improve their employee performance through improvement of competence, emotional intelligence, education and training and employee commitment as mediation to face the industrial revolution 4.0.

Literature Review and Hypotheses Development

Employee Performance

Performance is derived from the term “job performance,” which is also referred to as “real performance,” “work performance,” or “achievements” made by employees. The term “performance” derives from the terms “job performance” or “actual performance” (work performance or actual achievement achieved by a person), referring to the quality and quantity of work accomplished by an employee in order to perform his duties in accordance with assigned responsibilities. Work performance or performance is the outcome of work accomplished by a person based on talent, experience, seriousness, and time.

Competence, Emotional Intelligence, Education and Training and Organizational Commitment

Competence was an ability and skill. The root word itself is competent, it means capable or skilled. Competence refers to the traits or traits of an individual who succeeds in his work. Wibowo (2016) defined skills as the ability to work on the basis of knowledge, skills and attitudes. The influence of jurisdiction on organizational commitment was favorable and considerable. Thus, organizational commitment may be strengthened, more suitable the competence had. On the contrary, the competence's influence on organization’s engagement is somewhat positive and substantial. The theory is based on this description:

H1            The competence has a positive and significant influence on organizational commitment at PT. Mitra Kualitas Utama.

Robbins & Judge (2015) defined the emotional intelligence (emotional intelligence) as a person's ability to assess emotions in themselves and others, understand meaning of emotions, and regulate one's emotions regularly. Meanwhile, Lynn (Fatwa 2015) refers to emotional intelligence as a dimension of intelligence that is responsible for our ability to organize ourselves and relate to others. Additionally, Fatwa (2015) found that the fact that emotional intelligence has a large influence on commitment indicates that emotional intelligence is a critical component of increasing commitment. The theory is based on this description:

H2            Emotional intelligence has a positive and significant effect on organizational commitment at PT. Mitra Kualitas Utama

Education and training as an effort to maintain increase the ability, capacity and professionalism of employees. Education and training are important factors in human resource development. Education has a considerable beneficial influence on organizational commitment. On the other hand, training increases organizational commitment. The theory is based on this description:

H3            Education and training have a good and significant influence on organizational commitment at PT. Mitra Kualitas Utama.

Competence, Emotional Intelligence, Education and Training, Organizational Commitment and Employee Performance

Competence has a favorable influence on employee performance. An employee's competence has a favorable and substantial influence on employee performance at work. Additionally, empirical support for this study, establishing a favorable and substantial relationship between skills and employee performance. The theory is based on this description:

H4            At PT. Mitra Kualitas Utama, competence has a favorable and significant influence on staff performance.

Emotional intelligence has a favorable and substantial influence on employee performance. Widayati (2016), in her research shows that emotional intelligence affects employee performance. Because employees' emotional intelligence plays a very important role when interacting with colleagues, superiors and clients, employees can control themselves, motivate themselves and empathize in listening to what other party wants. Based on this description, the hypothesis is:

H5            Emotional intelligence has a favorable and significant influence on employee performance at PT. Mitra Kualitas Utama.

According to Sinurat & dan Mudji (2017), education and training improve employee performance. Education and training had a favorable influence on employee performance, while Wiguna (2015) demonstrated the same. This demonstrates that the education and training offered by the employer have a favorable effect on employee performance. It will have a significant impact on staff performance. The theory is based on this description:

H6            Education and training have a good and significant influence on staff performance at PT. Mitra Kualitas Utama.

Organizational dedication has a strong beneficial influence on performance. A greater knowledge of employees' organizational commitment results in increased employee performance. On the other hand, organizational commitment has a sizable impact on employee performance. Increased organizational commitment improves employee performance in a business. The theory is based on this description:

H10          Organizational dedication has a favorable and significant influence on staff performance at PT. Mitra Kualitas Utama

Mediation Function of Organizational Commitment on the Relationship between Competence, Emotional Intelligence and Education and Training

Organizational commitment acted as a partial mediator of the effect of competency on performance. Emotional intelligence has a substantial influence on employee performance, which is mediated through employee commitment. Organizational commitment acted as a moderator of the influence of training on performance. Employee performance is influenced indirectly by competence, emotional intelligence, education, and training. As a result, the following hypotheses might be made.

H7            The competence has a positive and significant influence on staff performance, which is mediated through organizational commitment.

H8            The emotional intelligence has a favorable and substantial influence on employee performance, which is mediated through organizational commitment.

H9            The education and training have a good and substantial influence on staff performance, which is mediated through organizational dedication.

Method

The research type is descriptive quantitative. The research objective is to describe the characteristics of situation or research object through the collection and analysis of quantitative data and statistical testing. The nature of this research is descriptive explanatory to explain position of one variable and its relationship with other variables.

The population is 180 employees of PT. Mitra Kualitas Utama. The sample size is based on Hair et al. (2014) that the optimal sample size for SEM is between 100 and 200 samples. The saturation sampling methodology is applied, which means that the whole population is sampled (Sugiyono, 2012).

The analytical method used in this research is quantitative analysis using Structural Equation Model (SEM) facilitated by AMOS version 22 software. SEM is processed with a two-stage approach:

  1. Analysis of model measurement using the goodness of fit (GOF), validity and reliability test to measurement analysis states. The desired results are suitable (fit).
  2. Structural analysis includes the fit test of whole model, analysis of causal relationships and hypothesis testing results

Research Results and Discussion

The results of study for relationship between variables are shown in Figure 1. The results of goodness of fit test for full model shows Chi-Square value smaller than the Chi-Square table, a probability greater than 0.05 and values ​​of CMIN/DF, RMSEA, CFI, TLI, IFI, PNFI and PGFI have met the recommended values (Tables 1 & 2).

Figure 1: The Relationship between Variables

Table 1
Regression Weights: (Group Number 1 - Default Model)
      Estimate S.E. C.R. P Label
Organizational_commitment Competence 0.407 0.069 5.933 *** par_10
Organizational_commitment Emotional_intelligence 0.627 0.244 2.573 0.010 par_11
Organizational_commitment Education_and_training 2.473 0.408 6.054 *** par_12
Employee_performance Competence 0.077 0.038 2.004 0.045 par_13
Employee_performance Emotional_intelligence 1.840 0.678 2.715 0.007 par_14
Employee_performance Education_and_training 0.742 0.259 2.869 0.004 par_15
Employee_performance Organizational_commitment 0.204 0.065 3.128 0.002 par_16
Table 2
Direct and Indirect Effect Coefficients
Hypotheses Path Path Coefficient VAF Mediation Category
H1 KP KO 0.296
H2 KE KO 0.157
H3 PP KO 0.233
H4 KP KK 0.105
H5 KE KK 0.213
H6 PP KK 0.119
H7 KP KO KK 0.085 0.447 Partial Mediation
H8 KE KO KK 0.345 0.618 Partial Mediation
H9 PP KO KK 0.838 0.875 Full Mediation
H10 KO KK 0.467

The findings of the data analysis indicate that competence has a positive and substantial influence on organizational commitment, with a correlation coefficient of 5.933 and a significance level of 0.001 (***). This suggests that increasing an employee's ability to perform their job effectively will result in an increase in organizational commitment. Adversely, lower employee’s competence will decrease the organizational commitment at PT. Mitra Kualitas Utama. This research result is consistent with Sugiono et al. (2021); Sulistiyani (2003).

The findings of the data analysis indicate that emotional intelligence has a positive and substantial influence on organizational commitment, with a coefficient of determination of 2.573 and a significance level of 0.010. It means that higher level of emotional intelligence of employees will lead increase the organizational commitment. Adversely, lower emotional intelligence of employees will decrease the employee’s organizational commitment at PT. Mitra Kualitas Utama. These findings corroborate study findings by Fatwa (2015) and Auda (2018).

The findings of the data analysis indicate that education and training have a positive and substantial influence on organizational commitment, with a correlation coefficient of 6.054 and a significance level of 0.001 (***). This indicates that increasing the quality of knowledge and training provided to employees will strengthen their commitment to the firm. On the other hand, a lack of knowledge and training would erode an employee's dedication to PT. Mitra Kualitas Utama. The findings of this study corroborate those of Sugiono et al. (2021).

The findings of the data analysis indicate that competence has a positive and substantial influence on employee performance, with a coefficient of determination (CR) of 2.004 and a significance level of 0.045. This suggests that increasing an employee's competency to execute their job will boost the employee's performance. On the other hand, decreased staff competence will result in decreased employee performance at PT. Mitra Kualitas Utama. The findings of this study corroborate those of Sugiono et al. (2021).

The findings of the data analysis indicate that emotional intelligence has a positive and statistically significant influence on employee performance, with a correlation coefficient of 2.715 and a significance level of 0.007. It means that better the emotional intelligence of employees to do their work will increase the employee performance. Adversely, lower employee’s emotional intelligence, will decrease the employee’s performance at PT. Mitra Kualitas Utama low. This study results are consistent with research results of Widayati (2016).

The data analysis results show that education and training have a positive and significant effect on employee performance at CR value of 2.869 and a significance value of 0.004. It means that better the education and training applied to employees will increase the employee’s performance. Adversely, lower quality of education and training applied to employees cannot improve employee performance at PT. Mitra Kualitas Utama. This study results are consistent with research results of Sinurat & dan Mudji (2017); Wiguna (2015); Nababan et al. (2016); and Harjuni (2018).

The data analysis reveals a positive and substantial influence of competence on employee performance, which is mediated through organizational commitment. The t-value of 6,900 demonstrates this (greater than 1.96). This suggests that organizational commitment can act as a mediator between competence and performance improvement at PT. Mitra Kualitas Utama. Organizational commitment, on the other hand, does not amplify the effect of competence on employee performance. Generally, competent employees tend to have good performance with or without organizational commitment. This study results are consistent with research results of Sugiono et al. (2021).

The data analysis reveals a favorable and substantial influence of emotional intelligence on employee performance as mediated by organizational commitment. The t-value of 12.166 demonstrates this (greater than 1.96). This suggests that organizational commitment might act as a buffer between employees' emotional intelligence and their performance at PT. Mitra Kualitas Utama.

The data analysis results show that education and training have a positive and significant effect on employee performance mediated by organizational commitment. This is evidenced by t value of 6.005 (greater than 1.96). It means that organizational commitment can mediate the education and training to improve employee performance at PT. Mitra Kualitas Utama. Organizational commitment can strengthen the effect of education and training on employee performance. This study results are consistent with research results of Sugiono et al. (2021).

The findings of the data analysis indicate that organizational commitment has a positive and significant influence on employee performance, as demonstrated by a CR value of 3.128 and a significance value of 0.002. This suggests that an employee's organizational commitment to the firm will result in an improvement in performance. On the other hand, a lack of organizational commitment on the part of personnel would result in poor performance at PT. Mitra Kualitas Utama. The findings of this study corroborate the findings of Sugiono et al. (2021).

Conclusion

This research shows the importance to examine competence, emotional intelligence, education and training to improve organizational commitment and employee performance. The research findings have successfully confirmed the results of previous studies that competence, emotional intelligence and education and training can improve employee performance. The organizational commitment mediates the competence, emotional intelligence and education and training to improve the employee performance.

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