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

Research Article: 2020 Vol: 19 Issue: 6

The Role of Work Effectiveness in Mediating Organization Communication and Work Discipline toward Employee Retention in Industrial Area

Togu Harlen Lbn Raja, STIE LMII

Riomas Sinurat, STIE Harapan Duri


This study aims to examine the role of retention of employees in the contact and work discipline of the joint organization in mediating work efficiency towards retention of employees. This Study is a quantitative explanatory analysis. For this analysis the population is as many as 100 Medan Industrial Area workers. Data review on this study uses AMOS-SPSS25’s support. The Road of Research is this study using qualitative analytical methods of the approaches used in this analysis. Intervention/mediation and recognition of partial mediation due to the importance of the job effectiveness effect on retention of employees not equal to zero by joining the vector Engagement and Job Discipline of the Organization. It can mean that the Job Effectiveness to be influenced by retention of employees must be assisted first by the variables of organizational engagement and job discipline


Organizational, Communication, Work Discipline, Work Effectiveness, Employee Retention.


Communication is a medium for developing a better relationship with one's fellow men. Communication uses a corporation or agency as an instrument for directing, monitoring, inspiring colleagues and evaluating an employee's job. Reliable human resources aren't isolated from the power of corporate communication implemented in a company's group activities. According to Katz and Robert Kahn (Rohim, 2017).

“Organizational communication is the current of information exchange and the symbol/meaning of an individual to another individual or individual to a group within an organization”.

While according to (Thayer, 2019)

“Organizational communication is a data stream that will serve the communication of organizations and intercommunication processes in several organizations”.

First related organizational practice, such as organizational operating tasks; second related to organizational management, such as guidance rules and instructions; third concerned with the Organization's continuity and growth, such as personal or stakeholder partnerships that are public organizations. Discipline is an activity that expresses itself in the fulfillment of a duty or regulation according to the time and conditions set. Discipline is also a means of self-control and daily enforcement of employees in showing the degree of employee performance in a business or organization where employees who do not comply with the company's regulations may obtain sanctions. Effective discipline represents the magnitude of one's responsibility for the mission assigned to him. It will boost the working spirit to achieve the goals of the company, its workers and society. The continuing implementation of the leadership's job discipline seeks to inspire the workers to strengthen the discipline not because of penalties but motivated by self-derived discipline. Banerjee (2019) suggested that retention of workers is a result of new technology and an aggressive market climate. In an organization that is continually evolving, it not only disrupts the structure but also the workers who work inside it. Human assets must be handled well in order to optimize organizational efficiency and to allow the best use of capital. Nasir & Mahmood (2018) said that retention of staff is today a central problem and obstacle for all organizations. Number of factors encourages employees to stay or leave the organization. It could be an external factor or an internal factor or the joint effect of both from the research observation results, communicating organizations that have less can make the subordinates feel dissatisfied in working because they are not involved in decision making. Coupled with the lack of attention given to employees by leadership, such as providing facilities that are adequate for employees to perform their duties.

Although disciplinary action is taken by the organization in terms of work discipline to make employees productive and successful in carrying out their duties in a business, but not completely working well, it is seen from the absence of employees who are less disciplined in the workplace and have not entered the office after the break ends which resulted in a low level of employee accountability for the job. Cooperation between employees thus decreases when a job is completed, which can sometimes lead to jobs or tasks due to obstacles that cause employee effectiveness not in line with company leadership expectations. Based on the background of the above problem, the problem formulation in this study is as follows: How is the role of retention of employees in mediating organizational communication and work discipline towards employee effectiveness in the Medan Industrial Area.

Literature Review and Theoretical Background

Work Effectiveness

According to Sutarto (Muhsin, 2016) Job effectiveness is a state in which human physical and spiritual actions are conducted in achieving results or consequences as they wish. According to Siagian, finalizing the appointed timely work is the effectiveness of the work (Siagian, 2018). Work performance is the end outcome of a sequence of tasks performed by humans to achieve those goals. A consequence or effect arising from a sequence of physical and spiritual tasks performed by humans to achieve a certain goal is from the notion of the efficacy of the above work if combined may obtain an understanding of the effectiveness of the work. At the other hand, a job is said to be successful when a predefined schedule allows it to be done in time. It can be derived from all the above description that the sense of efficiency of work is a state that shows the operation of the work that gives results or consequences as desired according to the set time. For this analysis , the authors used the size criterion to assess the effectiveness of the work of workers, in an attempt to create a sense of original abstract efficiency which is a bit of defining the more popular aspects associated with this definition (Steers & Osland, 2019). While there are a long list of evaluation criteria used, the most commonly used criteria are: adaptability, work satisfaction, job performance.

Organizational Communication

The contact is a basic human operation. Through engaging people at home, at work, on the street, in the neighborhood or wherever they are, you can connect to each other in daily life. Every human being participates in conversation. There is no denying the importance of communication to humans as well as to an organization. An organization will operate efficiently and effectively with good communication, and vice versa. Lack or absence of organizational community can be stuck and messy, because the importance of communication in an organization must then be the attention of a manager to assist in the execution of his duties communication in the organization is a science that learns how to interact within an organization. Communication itself is a part of an organization that helps organizational activity sustainability. According to (Ruliana et al., 2018), that:

“Organizational communication is defined as the display and interpretation of messages between communication units that are part of the organization. An organization consists of communication units in a hierarchical relationship and operating in an environment”

According to (Petra et al., 2006):

“Organizational communication is the organization's structure and purpose, human relationships, contact and process management, and organizational culture”

There are 4 communication functions in an organization according to the (Luthfie et al., 2016): ss Information, as a control, ss motivation, emotional expressions.

Working Discipline

Working Discipline is an attitude of respect, respect, obedience and obedience to the prevailing regulations, better written or unwritten and capable of administering it, and not limited to receiving sanctions in violation of his duties and authority (Susanto & Ulbricht, 2009). Work discipline as per Wahidi & Sopari (2018) is the condition that causes/encourages employees to do and conduct all tasks in compliance with the specified standards/regulations. While according to Purnama & Kempa (2016), working discipline is either written or unwritten attitude, actions and action, in compliance with the company's regulations. Therefore it can be inferred from the above-mentioned context that the discipline is vigilance, loyalty, behavior, a very polite attitude that exists in compliance with the rules agreed between the company and the employees. Siagian (2003) stated that the criteria used in the discipline of work could be grouped into three indicators such as: timeliness, loyalty/adherence to existing rules and regulations, and the maintenance of office equipment.

Employee Retention

Organizational management begins with the recruitment process for its employees, which tends to be the easy part; the challenge is to keep newly recruited employees in a very competitive environment (Radhesham, 2018). Radhesham (2018) stated that it spends time and organizational productivity on employee turnover. Management of companies improves their competitive markets to retain important workers, as stressed (Karatepe & Aga, 2016). Mohlala et al. (2012) claimed that the retention of hard-working workers helps to reduce the cost of turnover, and an area to which management must aspire. Kontoghiorghes (2016) examines the relationship between organizational culture and expertise, creation and conservation value. In Kontoghiorghe’s findings, he identifies and classifies organizational culture into four areas: (1) external adaptability environment, (2) clan-employee involvement (participation), (3) mission defines the vision of the organization, and (4) internal focus When organizational management does not have an adequate retention strategy, the cost of employee turnover is higher (Mohlala et al., 2012) indicated that d But management also needs to be prepared to let go of unskilled employees. Zhang & Stewart (2017) emphasize that organizational management must maintain committed workers by updating the organization's mission and vision; workers who appreciate work pleasure see this approach as gifts and real enjoyments that increase job satisfaction. Nasir & Mahmood (2018) said the inclusion of pleasure in the company could increase employee satisfaction, reduce absenteeism and open communication lines, create a comfortable atmosphere and increase work satisfaction rates.

Research Framework

The proposed research model is shown in Figure 1 below

Figure 1 Research Framework

Research Methodology

Research Design

The method of study employed in this research is a form of explanatory analysis. The object of this explanatory research is to know the X1 X2 Z Y Good little relationship and influence between research variables. Independent variables in this study are organizational commitment, discipline of work and quality of service, retention of employees as dependent variables and efficiency of work as moderating variable. The population in this research is a Medan Industrial Area employee; samples are part of the population owned number and characteristics. Sampling is performed taking into account that the amount of the population is not known. According to Donald R. Cooper, clarified that in deciding the sample size the basic formula assumes the population is infinite. A total population of 5,000 people was taken approximately into a survey of 100 individuals, with the same precision of estimate as 100 samples from 200 million populations (Cooper & Emory, 1995). For this analysis the sample magnitude was calculated by as many as 100 Medan Industrial Area employees. The sampling technique used is the first to use Accidental Sampling Accidental Sampling is a coincidence-based sampling technique which can be used as a sample for someone who has coincidentally encountered the researcher. The work is using qualitative theoretical methods and study of Road. The technique used in this study for analyzing data is Path analysis. The formulation of statistical hypothesis Analytical Model Path is as follows:

X2 = β1X1 + e1

Y = β1X1 + β2X2 + β3M + E2

X3 = β1X1 + β2X2 + e3


Y: Employee Retention

β: regression coefficient to be tested

X1: Organizational Communication

X2: Work Dicipline

X3: Work Effectiveness

E: Default Error.

Results and Discussion

Analysis and Interpretation

Path analysis is shown in Figure 2.

Figure 2 Path Analysis


The results in Table 1 are as follows:

Table 1 AMOS Path Analysis Calculation Results
      Estimate S.E. C.r. Q
WE <--- Oc 405 37 10,952 ***
WE <--- Wd 246 51 4,797 ***
Er <--- WE -131 37 -3,549 ***
Er <--- Oc 938 0.026 36,698 ***
Er <--- Wd 0.005 0.03 172 864

The Path of the study is focused on the strong calculation of causal relationships among some countertop correlations or covariants. The strong dimensions of the forming factor against the regression weight produced by the model can be analyzed through the T-Test. C. In regression analysis, R or Critcal Ratio is synonymous with the T-count, C. R values greater than 2.0 or the significance rate of a hypothesis test smaller than 0.05 suggest that the dimensions of the latent factor generated by those variables are important. From the results of the AMOS study it appears that a important partial variable in the measurement results are: organizational communication directly to Work Effectiveness (value C. R 10,952), work discipline directly to Work Effectiveness (value C. R 4,797), organizational communication directly to retention of employees (value C. R 36,698) and work discipline directly to retention of employees (value C. R 0). By the results of the AMOS study it can be shown that the Critical Ratio value for Work discipline directly to retention of employees (C. R value 0172) and organizational contact directly to retention of employees (C. R-3,549 value), this means that the variable is not important and the likelihood of each variable > from the significance point (a) 0.05. Therefore the hypothesis is dismissed, and it can be assumed that the improvement in retention of employees has no effect on the work performance of the company.

Interpretation of the line analysis as follows in Table 2:

Table 2 Interpretation of Line Analysis
Direct Influence 1. Organization Commitment To Employee Retention
2. Work Discipline To Employee Retention
3. Employee Effective's To Employee Retention
Influence Is Not Direct 1. Organization Commitment To Work Effectiveness Then To Employee Retention
2. Work Discipline To Work Effectiveness Then To Employee Retention
0405 x -0131=-0.053 0.246 X-0131 =-0.084
Total Influence 1. Direct Influence + Indirect Influence 0.938+0.005-0.131-0,053-0,084 = 0.675

Based on the results of the measurement of the total impact of the Organization Commitment to Work Effectives then to retention of employees and the Job Discipline to Work Effectiveness then to retention of employees for 0.675, there is an interference / mediation relationship and partial mediation is observed because the effect of the job Effectiveness to retention of employees is not equal to zero by en It can mean that the job performance to be influenced by retention of employees must have variables of the organizational engagement and job discipline in advance.


From the results of the analysis, both descriptive and statistical, the mediation relationship can be concluded as follows, and the occurrence of partial mediation can be observed because the value of work effectiveness influences retention of employees not equal to zero by entering the variable Engagement and Work Discipline. It can mean that the Job Effectiveness to be influenced by retention of employees must be assisted first by the variables of organizational engagement and job discipline. There are drawbacks in this analysis that are not the reward of questionnaire respondents but that can be solved


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