The Effect of Career Path and Internal Communication on the
Motivation and Performance of Employees
Ema Yuliyanti Panjaitan
1
, Maryani Septiana
2
1
Applied of Business Administration, Politeknik Negeri Batam, Jalan Jenderal Ahmad Yani Batam Center, Batam
Kepulauan Riau, Indonesia
Keywords: Career Path, Internal Communication, Work Motivation, Employee Performance
Abstract: This result to determine the effect of career paths and internal communication on employee motivation and
performance. The analysis method of this research is descriptive quantitative with path analysis. The
population in this study was operator and set-up positions employees of the production department. This
research uses 140 respondents obtained by a proportional stratified random sampling technique. The results
of this study indicate that partially and simultaneously career path variables and internal communication have
a positive and significant effect on motivation variables, career path variables. Internal communication and
work motivation have a positive and significant effect on employee performance variables, variable career
path, and employee performance variables through work motivation.
1 INTRODUCTION
1.1 Background
According to Pillai & Bagavathi (2003), apart from
equipment, machines, and materials, the success and
failure of an organization depend on its human
resources. To achieve maximum results, the company
should be able to manage the potential of each
employee in every activity. One of the factors that
must be monitored by organizational leaders to
achieve maximum employee performance is career
development (Caroline & Susan, 2014). As
mentioned by Regina (2013), an organization can
ensure the availability of employees with the
appropriate qualifications, abilities, and experience
through career development. Based on this, a leader
should ensure a career path within the organization,
including in the production unit. The sequence of
career paths from the lowest in the production unit is
operator, set-up man, leader, supervisor, and
manager. In every level of position from the lowest to
the highest, every employee needs good
communication with fellow workers, superiors, and
subordinates at work. This communication is often
called internal communication. In internal
communication, there will be communication
vertically, horizontally, and diagonally which should
be done periodically. This causes communication
problems so that the organization has difficulty
achieving its goals.
Career and communication factors have an impact
on employee motivation. All employees are expected
to have good motivation. So, maximum employee
performance achieved. This is the following research
conducted by Anita et al. (2015) which states that
motivation has a significant effect on employee
performance. Giving motivation to someone through
a career ladder and internal communication starts
with needs that can lead to desires and actions, and
ultimately results in motivation that leads to
organizational goals. Thus, employees are expected
to maximize their performance. Employee
performance is an output (quality and quantity) that is
produced by the employee through the work as the
company has been responsible for him. According to
Handoko in Murty (2012), organizations/companies
should improve employee performance to achieve
organizational goals by implementing various
policies.
Panjaitan, E. and Septiana, M.
The Effect of Career Path and Internal Communication on the Motivation and Performance of Employees.
DOI: 10.5220/0010356901070115
In Proceedings of the 2nd International Conference on Applied Economics and Social Science (ICAESS 2020) - Shaping a Better Future Through Sustainable Technology, pages 107-115
ISBN: 978-989-758-517-3
Copyright
c
 2021 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
107

2 REVIEW OF LITERATURE
2.1 Theoretical Review
2.1.1 Career Development
Handoko (2008) said that career development is a
form of personal improvement. This is following
Mondy's (2008) statement that organizations can take
a formal approach to get employees who have the
right skills and experience in terms of career
development. The dimensions and indicators of
career development according to Henry Simamora
(2012) are grouped as follows: (1) Mutations, the
transfer of positions/ responsibilities of employees to
provide good and deep job satisfaction, and
maximum work performance. The mutation factors
are: Promotion, the transfer of employees from one
position to another with a job with higher
responsibility and greater income. Rotation, periodic
transfer of employee tasks to another task. And
demotion in an agency; (2) Work placement, the
process of assigning tasks with authority and
responsibility within a predetermined scope. In
carrying out work placements, company employees
should pay attention to the education which can be a
reference for companies in placing employees in their
jobs; work knowledge before job placement which
needed to be able to place employees properly; the
ability to carry out work that is categorized into
mental abilities (analyzing data and making
decisions), physical skills (such as mechanics,
repairing electricity, etc.) and social skills (such as
being able to influence others, for example being able
to offer a product and service); and the experience of
an employee in carrying out a certain job can be taken
into consideration for the company so that the
company knows the placement for employees and the
length of time they work.
2.1.2 Internal Communication
Internal communication plays a major role in every
organization in doing business. Communication is
like blood in the body which is the source that is the
key to a person's success both in career and personal
life. Thus, it can be interpreted that communication
cannot be separated from organizational activities
because the organization will not function if there is
no communication.
Everyone has understood the importance of
communication in life. But unfortunately, our
awareness of the true meaning and meaning of
communication is still in doubt. The
delivery/exchange of information within a company
is called internal communication. The delivery of
communication within an organization/company will
occur (1) Vertically, communication that occurs from
the top-down or otherwise. Internal communication is
classified into downward communication and upward
communication; (2) Horizontally, for example,
communication between staff, or communication
between employees, etc; and (3) Diagonally, occurs
between vertical and horizontal communication, so
that diagonal communication can occur between
leaders of a unit and employees of other units.
2.1.3 Communication Process
The communication process occurs in two stages,
namely primary (using symbols/symbols) and
secondary (using tools or means as media). The
effectiveness of communication is influenced by
various factors. To be able to understand what are the
factors that can affect the effectiveness of
communication, it is necessary to pay attention to
what elements in the communication process,
including source – encoder, message, channel
(media), decoders, receiver.
2.1.4 Work Motivation
Every person's attitude/behaviour in responding to his
job so that it can create a sense of satisfaction with his
performance is called work motivation. The existence
of motivation in humans will give rise to the urge and
desire to give the best in their work (Umar, 2003).
Thus, it is concluded that with the motivation of the
employees which raises the desire to do their job well,
it is called work motivation.
As mentioned by Siagian in the Novita (2011)
book, the characteristics of each affect work
motivation. The characteristics include (1)
Biographical Characteristics consisting of (a) Age,
age has a strong relationship in organizational life
which can affect task skills; (b) Gender, by paying
attention to the gender factor, it is expected that each
employee will get treatment in such a way that is by
their level so that they can become responsible
employees; (c) Marital status, marital status provides
instructions and indirect motivation techniques for
employees who are married. (d) The number of
dependents, the more dependents a person has, the
more motivated he is to do work; (e) Years of service,
productivity, and attendance are affected by years of
service. This may be due to a feeling of boredom in a
person when doing a job for a long time.; (2)
Personality, work motivation can influence a person's
personality to be able to interact with others; (3)
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Perception, a person's opinion about the environment
that affects their behavior towards their surroundings.
(4) Ability to learn, the learning process will occur
throughout life and does not only include formal
education which can be obtained in various
educational institutions.
The dimensions and indicators of motivation
according to Wibowo (2011, p. 162) are as follows
(1) The need for achievement by doing hit the target,
have good quality and responsible for work; (2)
Needs to get along by doing communicate well with
colleagues and friendly with colleagues; (3) The need
to be able to master the job well.
2.1.5 Employee Performance
Mangkunegara (2002) states that employee
performance is an output achieved both in quality and
quantity. Besides, performance can be explained as
the relationship between efforts, abilities, and
perceptions of tasks because of the ability of
employees to complete their work. How big the
contribution that employees make to the organization
in terms of quantity, quality, attendance, and
cooperative attitude is influenced by employee
performance.
There are four dimensions of employee
performance that have been suggested by
Mangkunegara (2001): (1) Quality of work (accuracy,
thoroughness, and neatness); (2) Work quantity
(amount of work); (3) Responsibilities (work
accepted and performed); (4) Attitude (self-
placement)
2.2 Research Accomplished
(1) Research from (Davardoost dan Javadi, 2019)
under the title “The Impact of Internal
Communications on Employee Engagement in Iran’s
Petrochemical Industry” and the results of its research
is there Frequency, direction, quality, and content
have the greatest impression on employee
involvement. Meanwhile, the dimensions of content
and fashion have less impact on employee
involvement. The frequency of communication
(formal or informal) has a high impact on internal
organizational communication in case studies; (2)
Research from (Gautama et al, 2018) under the title
“Effect of organisational communication and culture
on employee motivation and its impact on employee
performance” and the results of its research is
organizational communication significantly
influences employee motivation and employee
performance; organizational culture have not
significantly influences on employee motivation and
performance and; employee motivation significantly
influences employee performance variables; (3)
Research from (Katidjan et al, 2017) under the title
“The effects of Compensation, Career Development
and Communication on Employee Performance)” and
the results of its research is compensation and career
development partially affect but not significantly to
employee performance; partial communication has a
significant influence on employee performance;
compensation, career development and
communication significantly influences of
simultaneous on employee productivity; (4) Research
from (Dewi & Utama, 2016) under the title “The
effect of Career Development Against Employee
Performance Mediation of Work Motivation at the
Mas Art Gallery” and the results of its research is
Career development positive and significantly
influences employee performance variables. Work
motivation does not mediate career development
significantly to performance; (5) Research from
(Anita, 2015) under the title” The Effect of
Motivation and Career Development on Performance
Through Job Satisfaction of Employees of AJB
Bumiputera 1912 Semarang Metro Area” and the
results of its research is motivation significantly
influences employee performance and employee
satisfaction; career development significantly
influences on job satisfaction; job satisfaction
significantly influences on performance; motivation
and career development simultaneously significantly
influence on job satisfaction.
Motivation and career development have a greater
effect on employee performance, through employee
job satisfaction; (6) Research from (Sari, 2014) under
the title ”The Effect of Internal Communication,
Reward and Punishment On Work Motivation
Employees at BPR Nur Semesta Indah Kencong,
Jember Regency” and the results of its research is
there is a positive influence of internal
communication, reward and punishment on employee
work motivation; and there is a positive influence of
internal communication, reward and punishment on
work motivation; (7) Research from (Paripurna,
2013) under the title ”The Effect of Leadership, Work
Environment, and Communication on Employee
Satisfaction at Suriwathi Beach Hotel Legian-Kuta
Bali” and the results of its research is there is a
significant influence simultaneously on leadership,
work environment and communication on job
satisfaction; leadership, work environment and
communication have a significant and partially
positive effect on employee job satisfaction.
The Effect of Career Path and Internal Communication on the Motivation and Performance of Employees
109

2.3 Conceptual Framework
The conceptual method is designed to explain how
the relationship between the theory and the identified
factors is called a frame of mind. In this study, there
is a framework that explains the relationship of
variables which is described as follows:
Figure 1 Conceptual Framework
The hypothesis in this study is as follows:
H1: Career path has a positive and significant effect
on the work motivation of PT.NFB employees.
H2: Internal communication has a positive and
significant effect on the work motivation of PT.NFB
employees.
H3: Career path has a positive and significant
effect on the performance of PT.NFB employees. H4:
Internal communication has a positive and significant
effect on the performance of PT.NFB employees.
H5: Work motivation has a positive and significant
effect on the performance of PT.NFB employees. H6:
Career path and internal communication have a
positive and significant effect on the performance of
PT.NFB employees through work motivation.
H7: Career path and internal communication
simultaneously have a positive and significant effect
on the performance of PT.NFB employees.
H8: Career path, internal communication, and work
motivation simultaneously have a positive and
significant effect on the performance of PT.NFB
employees.
3 METHOD OF RESEARCH
3.1 Research Design
This research is classified into a descriptive study
with a quantitative approach, so this research is
conducted by testing the theory to measure the
research variables expressed in numbers and
processed and analyzed using statistical procedures.
This study will use primary data using a
questionnaire. The questionnaire is a data collection
technique by providing a set of questions or written
statements to respondents to answer (Sujarweni,
2015: 94). Researchers will obtain data through
distributing questionnaires or questionnaires which
will then be analyzed based on the theory that has
been studied so that conclusions can be drawn about
the problem under study.
It takes enough respondents to obtain data through
a questionnaire to meet good validity and reliability.
A profit is expected to be more able to provide a good
picture if the number of respondents in a study is
sufficient. The research variables are as follows
career path (X1), internal communication (X2), work
motivation (X3), and employee performance (Y).
3.2 Population and Sample
In this study, employees of the production division of
a manufacturing company in Batam were assigned to
be the operator and set-up man with 213 employees
as the study population. The population of this study
consisted of 181 operators and 32 set-up employees.
Researchers used the Slovin formula to determine the
number of samples used with an error tolerance of 5%
so that the sample to be used was 140 respondents. In
taking the sample, the researcher used the
proportional stratified random sampling method,
namely by taking a sample that was not homogeneous
but stratified in a proportional manner (Hanief and
Himawanto, 2017). From these explanations, this
study compiles a sample of respondents based on
population comparisons with the criteria of Set Up
Man as many as 21 respondents and operators as
many as 119 respondents.
3.3 Data Collection Techniques
Researchers need to collect data to obtain the required
data (Sugiyono, 2013). In this study, researchers
collected data through a survey by distributing
questionnaires containing several written statements
that would be answered by respondents in accordance
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with existing conditions. The questionnaire used is
closed, which has given a choice of answers to be
chosen by respondents. As for each choice of answers
given a score as a benchmark point in this study.
4 RESULT AND DISCUSSION
4.1 Path Analysis
4.1.1 Model I Linear Regression Test
The first linear regression model is structured to
obtain a new beta value from the variable career path
(X1) and internal communication (X2) which are
significant to work motivation (X3). The results of the
linear regression analysis for the first model are as
follows:
Table 1: Model I Regression Test Results.
In the table above, it can be seen that the significance
value of the career path variable (X1) on work
motivation (X3) is 0.00 < 0.05 with a t- value of
10,171 > t-table, it is concluded that H1 is accepted,
where career path has a positive and significant effect
on work motivation. The results of this study support
the research of Anita, et al (2015). The significance
value of the internal communication variable (X2) on
work motivation (X3) is 0.00 < 0.05 with a t-value of
3.662 > t- table, it is concluded that H2 is accepted,
where internal communication has a positive and
significant effect on work motivation. The result of
this study support the research of Gautama So, et al
(2018).
Table 2: Anova Table.
In the table above, the value of F model I count
(213.396)> F table (3.060) with a significance of 0.00
(0.00 <0.05), it is concluded that the variable career
path (X1) and internal communication (X2)
simultaneously have a positive and significant effect
on motivation work (X3). The results of the
coefficient of determination in the first model be
follows:
Table 3: Model I Determination Coefficient.
Based on the Adjusted R Square value in the table,
the R value of model I is 0.757, which means that the
variance of work motivation variables can be
explained by career path and internal communication
variables by 75.7%, while the remaining 24.3% is
explained by other variables outside of this study.
Based on this value, the error value in the work
motivation variable is obtained as follows:
Based on the data from the results of the regression
test for the first model above, the path equation for
model I is obtained as follows:
Figure 2: Model I Path Diagram
4.1.2 Model II Linear Regression Test
The second linear regression test model was prepared
to obtain new beta values from the variable career
path (X1), internal communication (X2), and work
motivation (X3) which were significant to employee
performance (Y). The results of the linear regression
analysis for the second model are as follows:
The Effect of Career Path and Internal Communication on the Motivation and Performance of Employees
111

Table 4: Model II Regression Test results.

In the table above, it can be seen that the
significance value of the career path variable (X1) on
employee performance (Y) is 0.00 < 0.05 with a t-
value of 7.361 > t-table, it is concluded that H3 is
accepted, where career path has a positive and
significant effect on employee performance. The
results of this study support the research of Dewi and
Utama (2016) and research by Anita, et al (2015).
The significance value of the internal
communication variable (X2) on employee
performance (Y) is 0.00 < 0.05 with a t-value of 3.681
> t-table, it is concluded that H4 is accepted, where
internal communication has a positive and significant
effect on employee performance. The results of this
study support the research of Gautama So, et al
(2018) and the research of Katidjan, et al (2017).
The significance value of the work motivation
variable (X3) on employee performance (Y) is 0.00
< 0.05 with a t-value of 5.082 > t-table, it is concluded
that H5 is accepted, where internal communication
has a positive and significant effect on employee
performance. The results of this study support the
research of Gautama So, et al (2018) and the research
of Dewi and Utama (2017).
Table 5: Anova Table Model II.

In the table the value of F count (293,792)>F table
(2,670) with a significance of 0.00 (0.00 < 0.05), it is
concluded that the variables of career path (X1),
internal communication (X2) and work motivation
(X3) simultaneously have a positive effect. and
significant on employee performance (Y). The results
of the coefficient of determination in the model II be
follows:
Table 6: Model II Determination coefficient.
Based on the Adjusted R Square value in the table,
the R model II value is 0.866, which means that the
variance of employee performance variables can be
explained by career path and internal communication
variables of 86.6% while the remaining 13.4% is
explained by other variables outside of this study.
Based on this value, the error value in the employee
performance variable is obtained as follows:
Based on the results of the regression test for the
second model above, the path equation model II is
obtained as follows:
Figure 3: Model II Path Diagram.
4.1.3 Path Analysis
Variables that mediate the relationship between the
independent variable and the dependent variable are
called intervening variables. The research model
provides an indirect effect of career paths and internal
communication on employee performance through
work motivation. The intervening test is carried out
using path analysis as follows:
Figure 4: Path Analysis Results.
From Figure 4 it can be seen the magnitude of the
error value and the path coefficient value of each
independent variable to the dependent variable in the
sub-structures of models I and II. From the picture
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above, we can find the indirect effect in this study as
follows:
Table 7: Direct effect, indirect effect, and total effect.
From table 5 it can be concluded that in this study
career path variables have the greatest influence both
directly and indirectly on work motivation (model I)
and on employee performance (model II), while the
lowest influence in this study both directly and
indirect is the influence given by internal
communication variables.
4.2 Sobel Test
To test whether there is an indirect effect in this study,
the Sobel test is used to first find the standard error of
the indirect influence:
Then, find the t value with the formula:
The sobel test results in this research are as follows:
Table 8: Sobel Test.
a = coefficient of the independent variable
b = coefficient of intervening variable
sa = standard error of the independent variable
sb = standard error of the intervening variable
sab = standard error indirect effect
The t value using the single test career path variable
(X1) on employee performance (Y) through work
motivation (X3) is 5.357 > t-table (1.656), it is
concluded that career path has a positive and
significant effect on employee performance through
work motivation. The results of this study are
different from the results of research by Dewi and
Utama (2016).
The t value using the sobel test of internal
communication variables (X2) on employee
performance (Y) through work motivation (X3) is
3.487 > t-table (1.656), it is concluded that internal
communication has a positive and significant effect
on employee performance through work motivation.
Results The results of this study support the
research results of Gautama So, et al. (2018). Based
on the t analysis above, it can be concluded that H6 in
this study is accepted, which means that career path
and internal communication have a positive and
significant effect on employee performance through
work motivation.
5 CONCLUSIONS &
SUGGESTION
5.1 Conclusions
Based on the results of the research hypothesis test
the following conclusions are obtained: (1) Variable
career path effect directly on work motivation
variables of 0.671 or 67.1%, where the t count was
10,171> t table with a significance of 0.00 <0.05. This
shows that the H1 hypothesis is accepted. The clearer
the application of career paths, the more employee
motivation will be. These results support the research
of Anita et al. (2015) which states that career
development has a positive and significant effect on
work motivation; (2)
Internal communication variables directly
influence work motivation variables of 0.241 or
24.1%, where the t count was 3,662> t table with a
significance of 0.00 <0.05. This shows that H2 was
accepted. The clearer the career path that is applied,
the more employee performance will be. And if the
career path is not clear, the employee's performance
will decrease. The better the communication between
superiors and subordinates as well as to colleagues, it
will increase employee motivation. Conversely, if
internal communication does not go well, work
motivation will decrease. The results of this study
support the research of Gautama So, et al (2018)
which states that organizational communication
significantly affects employee motivation; and
research from Sari (2014) which states that internal
communication has a positive effect on employee
motivation; (3) Career path variables have a direct
The Effect of Career Path and Internal Communication on the Motivation and Performance of Employees
113

effect on employee performance variables. The direct
effect of 0.479 or 47.9%, where the t count was
7.361> t table with a significance of 0.00 <0.05. This
shows that H3 was accepted. The clearer the career
path that is applied, the more employee performance
will be. And if the career path is not clear, the
employee's performance will decrease.
This support the research of Dewi and Utama
(2016) and research by Anita et al. (2015) which
states that career development has a positive and
significant effect on employee performance.
However, the results of this study are different from
the results of research from Katidjan et al. (2017)
which states that career development has a partial but
insignificant effect on employee performance; (4)
Internal communication variables directly influence
employee performance variables. The direct effect of
0.189 or 18.9%, where the t count was 3.681> t table
with a significance of 0.00<0.05 This shows that H4
is accepted. The better the internal communication
that is established, the better the employee's
performance will be. Conversely, if internal
communication does not go well, employee
performance will decline. This support the research of
Gautama So, et al (2018) which states that
organizational communication significantly affects
employee performance; and research from Katidjan,
et al (2017) which states that communication partially
has a significant effect on employee performance; (5)
Work motivation variables directly influence
employee performance variables of 0.323 or 32.3%.
where the t count was 5.082> t table with a
significance of 0.00 <0.05. This shows that H5
hypothesis was accepted. The better the employee's
work motivation, the better the employee's
performance will be.
Conversely, if the employee's work motivation
decreases, the employee's performance will also
decrease. These results support the research of
Gautama So et al (2018) which states that employee
motivation significantly affects employee
performance; and research from Dewi and Utama
(2017) which states that work motivation has a
positive and significant effect on employee
performance; (6) Career path and internal
communication variables influence employee
performance variables through work motivation
variables. The indirect effect of career path is 0.217
or 21.7% and internal communication with employee
performance is 0.078 or 7.8%. The indirect t value of
career path on employee performance and the indirect
t value of internal communication on employee
performance using the sobel test respectively were
4,559> t table (1,656) and 2,934 > t table (1,656). This
shows that H6 was accepted. The clearer the career
path and the better the internal communication that is
established, the employee work motivation will
increase. With the increase in work motivation, the
employee's performance will also increase. The
results of this study are different from the results of
research by Dewi and Utama (2016) which state that
work motivation has no effect as a variable that
mediates the relationship between career
development and employee performance; (7)
Variable career path and internal communication
simultaneously affect the work motivation variable of
0.753 or 75.3%, where the f count of 213,396> t table
(3,060) with a significance of 0,000 <0.05. This
shows that H7 was accepted; (8) Variable career path,
internal communication and work motivation
simultaneously influence the employee performance
variable of 0.863 or 86.3%, where the f value of
293,792> t table (2,670) with a significance of 0,000
<0.05. This shows that H8 was accepted.
5.2 Suggestion
5.2.1 Practical Advice
To improve employee performance and motivation,
the management needs to pay attention to career path
factors and internal communication in depth,
especially on career path factors because career paths
have the greatest influence on both employee
motivation and performance. Thus, it is hoped that the
management will evaluate and adjust the career path
factors through the dimensions of transfer and job
placement so that it will increase work motivation and
employee performance to achieve company goals.
5.2.2 Theoretical Suggestions
For further research it is suggested to add the number
of other independent variables to further explain the
other variable factors that affect employee motivation
and performance.
5.3 Research Limitations
The limitations and shortcomings of this study are
that the data collection process using questionnaires
given to respondents takes a long time because the
respondents in this study are divided into two work
shifts so that researchers have limited time in
collecting data on respondents with different shifts
from the researcher.
ICAESS 2020 - The International Conference on Applied Economics and Social Science
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ACKNOWLEDGEMENTS
Acknowledgments are addressed to Politeknik Negeri
Batam
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