Work Motivation, Job Satisfaction and it’s Effect toward

Organizational Commitment to Honorary Employees (Contract

Employees) at PT X

Azizah Anshori, Fendy Suhariadi and Samian

Faculty of Psychology, Universitas Airlangga, Surabaya, East Java, Indonesia

Keywords: Work Motivation, Job Satisfaction, Organizational Commitment, Honorary Employee, Contract Employees.

Abstract: This study aims to determine whether there is any effect method of work motivation and job satisfaction

toward organizational commitment and honorary employees at PT X. Every organization always has a

certain goal to obtain. One of the important things in achieving the goal is a strong and good human

resource department. The Employees commitment is one of the keys for organization and productivity in

order to face the competition, with 60 people as a subject consisting of 54 men and 6 women. The

questionnaire used were 30 item of work motivation by Tan and Waheed (2011), 36 items of job satisfaction

by Spector (1994) and 24 items of organizational commitment by Allen&Meyer (1991). Based on the result

obtained, among work motivation, job satisfaction and organizational commitment indicates that work

motivation and job satisfaction jointly had a significant effect on organizational commitment.

1 INTRODUCTION

Each established organization has a purpose

described in its vision and mission. To help

organization achieving their goals, it requires

adequate human resources (HR) support. According

to Arthur (1994) the success of the organization is

influenced by the role of HR management.

Regardless of the organization progress, it would be

useless if there were no human resources support.

In the face of the competition, employee

commitment is one of the keys to success (Barney,

1991). Commitment is a willingness to strive for the

success of the organization as well as the individual.

Commitment is demonstrated by a strong attitude of

acceptance and confidence in the values and goals of

the organization. Organizational commitment can be

gained by working diligence, aligning personal life

with work, promotion, and fairness. Organizations

must continually strive to increase organizational

commitment (Peter and Crawford, 1999).

Strong commitment, demonstrated by the decline

in work-transfer behavior such as low employee

turn-over, is of great value for the company or

organization (low turnover). According to Raharjo

(2009) commitment is one of the important

variables, because it has the power to influence

employee behavior.

Job satisfaction is one factor that can affect the

entire company. Employees, who are satisfied with

their work and work environment and feel enganged

with the company's activities, will have a high

commitment (Hodge & Anthony, 1988). Job

satisfaction is an attitude that is a reflection of

various aspects. Simply put, job satisfaction can be

interpreted as the amount of employees like to their

work (Spector, 2000).

The commitment of one's organization is closely

related to perceived job satisfaction. Commitment

and job satisfaction can be identified as an

accumulation of interaction results that occur

continuously between the person work and

environment where they work. Employees who are

environment satisfied with their work will have

higher productivity rate. Motivation plays a very

important role in encouraging employee job

satisfaction (Pullins et al 2000).

Since the enactment of the labour law Number

13 of 2003, Indonesia has legalized the contract

labour system, both carried out by local, foreign and

private companies as well as government-owned

companies. The phenomenon of contract workers is

increasingly being chosen as an alternative to getting

a cheap, fast and lower risk workforce. In contrast to

permanent employees, honorary employees do not

get benefits or severance payments from the

866

Anshori, A., Suhariadi, F. and Samian, .

Work Motivation, Job Satisfaction and itâ

Zs Effect toward Organizational Commitment to Honorary Employees (Contract Employees) at PT X.

DOI: 10.5220/0007553008660869

In Proceedings of the 2nd International Conference Postgraduate School (ICPS 2018), pages 866-869

ISBN: 978-989-758-348-3

company even though the workload obtained is the

same or even heavier than permanent employees.

The system of using honorary employees is

considered to be quite profitable for the company,

because of the above, the company will get a fast,

cheap and minimal risk workforce. The company

does not need to worry about career systems,

payroll, retirement / severance pay and so on related

to HR management. Honorary employees who are

not in accordance with the company's target can also

be replaced after the contract is over and the

company will easily get a replacement from the

labour provider company. Even though the contract

employee system will benefit the company, this

system can harm honorary employees. It is because

of the absence of a clear career paths as well as their

salary paid by the user company is sometimes

unilaterally deducted by the parent company or

labour service provider.

Differences in conditions experienced by

contract and permanent employees, can affect the

level of commitment. Permanent employees can

work by using the facility without a burden to be

dismissed, whereas contract employees have a

greater risk of being terminated by the company.

They (honorary employees) also get less

convenience, benefits and compensation from the

company. This uncertainty causes honorary

employees to feel uncomfortable and leads to less

than optimal work output.

2 LITERATURE REVIEW

2.1 Job Motivation, Job Satisfaction

and Organizational Commitment.

Motivation is a process that determines the intensity,

direction, and perseverance of the individual in an

effort to achieve the goal (Robbins, 2006: 213)

motivation is a process that generates, directs and

maintains or maintains human behavior towards the

company goal in order to be directed the goal

(Greenberg and Baron, 1997). Based on the previous

definition, then the motivation of work is the driving

force or the power to do a business that is directed to

the behavior that involves them with the job.

Motivation of work is an effort that can lead to a

behavior, direct behavior, and maintain or maintain

behavior in accordance with the work environment

of an organization.

When a person feels high satisfaction, he or she

will be positive, but on the contrary if they feel

unhappy or dissatisfied, they tend to show a negative

attitude toward the job (Robbins, 2006). Job

satisfaction generally refers to an employee's attitude

which is a relish or relative feeling that is usually

relative to their objective thinking and behavior. Job

satisfaction is the result of an employee's assessment

of various aspects of their work. The result of the

assessment is a satisfied and dissatisfied attitude.

The degree of satisfaction can be from very satisfied

to very dissatisfied.

Organizational commitment is demonstrated by

loyalty and self-identification in the organization or

company. Organizational commitment can be

summed up as a person's desire to settle down with

the organization, trust and accept the values and

objectives of the organization and be willing to

make the best effort possible for the company. There

are three component models of commitment that are

characteristic of workers' commitment to the

organization, namely: Affective Commitment,

Continuance Commitment, and Normative

Commitment (Meyer and Allen, 2007).

2.2 Relationship among Motivation,

Job Satisfaction and

Organizational Commitment

Motivation is able to encourage employee job

satisfaction (Pullins et al 2000). Good commitment

will drive performance, which in turn will increase

job satisfaction (Peter & Crawford, 1999). Job

satisfaction is mostly associated with achievement

and turn over. Job satisfaction is one factor that can

affect the commitment of productivity. Employees,

who are satisfied with their work and work

environment, feel engaged with company activities,

will have high commitment (Hodge, Anthony &

Gales, 2003).

The result of the previous research showed that

work motivation has positive effect and job

satisfaction have positive effect on organizational

commitment, either partially or simultaneously

(Low, 2000, Hidayat, 2005, Chandraningtyas, et al.,

Kris, 2009, Windra, 2012, Tania and Sutanto, 2013.

3 METHODOLOGY

This research used quantitative approach, with

multiple regression model. The subject of the

research was honorary employee at PT.X with 62

samples. The level of education was from high

school (SMA) to bachelor (S1). The collected data

was by 3 questionnaire instruments. The first work

Work Motivation, Job Satisfaction and itâ

Zs Effect toward Organizational Commitment to Honorary Employees (Contract Employees) at

PT X

867

motivation questionnaire adapted from Tan and

Waheed (2011) as much as 30 items. Second, a job

satisfaction questionnaire that was adapted from

Paul (1994) totaled 36 items. The three

organizational commitment questionnaires from

Meyer and Allen's (1997) were 24 items.

4 RESEARCH RESULT

The results of descriptive analysis, showing all data,

60 valid, no data lost. These apply to all research

variables. Standard deviation below means no outlier

data. The significant level in this research is 5%.

Table 1:Descriptive statistics.

Motivation

Satisfaction

Commitment

Valid

Missing

Mean

115.016

112.733

76.783

Std. Error of

Mean

1.439

1.182

.850

Std. Deviation

11.153

9.157

6.584

Variance

124.390

83.860

43.359

Skewness

.685

-.575

.791

Std. Error of

Skewness

.309

Kurtosis

.827

1.242

1.002

Std. Error of

Kurtosis

.608

Range

Minimum

Maximum

146

133

Sum

6901

6764

4607

The value of F the organization's commitment is

16.397 with a significance of 0.000. It means that

work motivation and job satisfaction simultaneously

have a significant effect on organizational

commitment.

Table 2: ANOVA

Model

Sum of

Squares

Mean

Square

Sig.

Regression

1930.374

965.187

16.387

.000

Residual

5124.348

58.901

Total

7054.722

a. Predictors: (Constant), SATISFACTION,

MOTIVATION

b. Dependent Variable: COMMITMENT

In regression analysis and partial test of each

independent variable to the dependent variable, it

was found that work motivation significantly

influenced organizational commitment with β

coefficient of 0.364, t-value 2.96 and significance

level 0.004. Job satisfaction has a significant effect

on organizational commitment with β coefficient of

0.060, t-value .488, and significance level of .627.

Table 3: Coefficients

Based on the results of F test and ANOVA test

depict that work motivation and job satisfaction

simultaneously have positive effect to organizational

commitment. The results of this research supported

the results of previous research conducted by Low

(2000), Hidayat (2005), Chandraningtyas, et. al

(2007), Kris (2009), Windra (2012), and Tania &

Sutanto (2013). In his research, Low used 4

variables of motivation, job satisfaction,

organizational commitment and intention to leave.

Motivation is able to encourage employee job

satisfaction (Pullins et al 2000). Good commitment

will drive performance which in turn will increase

job satisfaction (Peter & Crawford, 1999). Job

satisfaction is mostly associated with achievement

and turn over. Job satisfaction is one factor that can

affect the commitment of productivity. Employees,

who are satisfied with their work and work

environment, feel engaged with company activities,

will have high commitment (Hodge, Anthony &

Gales, 2003)

5 CONCLUSIONS

The results showed that the motivation of work and

job satisfaction affect the commitment of honorary

Model

Unstd

Coefficients

Stndr

Coefficients

Sig.

Std.

Error

Beta

(Constant)

47.18

12.84

3.675

.001

MTV

.215

.073

.364

2.960

.004

STF

.043

.088

.060

.488

.627

a. Dependent Variable: COMMITMENT

ICPS 2018 - 2nd International Conference Postgraduate School

868

employee organization at PT. X. It means that

employee motivation and employee satisfaction in

work can influence level of employee commitment

to company as well as the companies’ success and

productivity level. The drive of wages and

incentives can be one of the factors that affect

satisfaction and increase employee motivation in

work. Social impulse in the form of a good

friendship relationship between colleagues can also

help employees to improve motivation and

satisfaction in work that will help improving the

company's commitment and long-term goal.

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Work Motivation, Job Satisfaction and itâ

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