KnE Social Sciences | The First International Research Conference on Economics and Business (IRCEB) | pages: 211–227

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1. PREFACE

The employee is human resource owned by companies, though it is different to the machines also owned by the company. It is an asset for the company. Each individual employee has got different characters, they have different competences as well as different will. Here is the important role of a manager take place to run the employee performance.

Mangkunegara (2009:67) defined performance in work (work achievement) as result of work qualitatively and quantitatively that has been achieved by an employee in working on his/her based on the responsibility given.

Referring to the opinion above, concluded that employee performance is the result of work given. Employee performance is the key to the output of an organization or company. it is that important that the employee should have been watched and evaluated in every period.

Employee performance is very individually as every employee has a different level of ability in doing their works. According to Potu (2014), employee performance can be increased by giving good examples from a leader, motivating the employee, and always paying attention to the employee's work. In the process, leadership is focused to the object of work of the leaders, which is a process where the leaders use their influences to lighten the purpose of the organization for the worker, employee, or anyone led by them, motivate them to reach that purpose, and help to create a productive custom in an organization. That statement supports the theory of hope according to Vroom and Gudono (2014:52-54) which explained, an employee will be motivated on three principal that are, a certain behavior will produce certain hope (result hope), that result has positive value (valence), and that result can be achieved through a work (work hope). Shortly, the theory of hope exclaims that when one wants something and the hope of getting it is big enough, one will be very motivated to get it.

Looking from how big the impact of motivation on employee performance in an organization, it is a must for manager or leader to keep and increase their employee motivation so that they are able to give their best performance for the company.

Work motivation can be influenced by many things, one of them is good communication within the organization. According to Rajhans (2012), internal communication plays a very vital role in the implementation of all these ideal motivational practices in the organization. Effective communication has helped to improve employee motivation and performance in the company. Supporting that statement, Muchlas (2014: 274) explained, communication also raised the motivation by explaining to the employee the things they need to do, how they need to do, and things that can be done to increase their performance.

Other theory from Linkert explained that if we (leader) have good communication with the employee, they will be motivated and productive (Littlejohn dan Foss, 2005:244). In another way, good communication between the employers and the employee can create a work motivation that boost a better performance. As stated by Sopiah (2008:142) that communication functions to raise employee's motivation' This function runs when managers want to increase employee's performance.

Communication is not only able to influence employee's performance through motivation, but it gives a direct impact on employee's performance. Tomkins and Cheney in Littlejohn and Foss (2009:354-357) explain organizational control theory as stated, employers communicating in an organization by building some control over the employee. That theory explains that employers use communication to control over the employee performance. Based on Muhammad (2011:1), with an effective communication, an organization can run well and successfully. That statement is supported by Bovee and Thill (2007:26) who stated that if they are able to have communication attention in teamwork member so that the information received is fast and on point, the employee will give satisfying result in the form of better and optimum performance. A research conducted by Femi (2014) shows the relation between communication and employee performance as “Effective communication creates mutual understanding between management and workers which helps in building genuine relationship among both parties in the organizations. Also, this study reveals that poor communication can affect workers performance”.

PT. Putri Panda Tulungagung Jawa Timur Indonesia is a company work with snacks.previously, this company is a home industry, but by the increasing income, market, production, and distribution, this company now can't be mentioned as small home industry any longer. This also started the status change of the company to PT (Perseroan terbatas or limited corporation). With this change, management is chosen as the superintendent. Hoping that the company management would be more structured and complex. As a big company that competes in the bigger market, the employee or human resource manager is something vital in supporting the company performance.

This company has three units that work in the same field. Through an interview conducted on November 28, 2015, with Mr. Imam Basiru as the owner of the company, revealed that there is a problem with his employee performance in Unit II factory. This problem was discovered through the number of production of Unit II that sometimes didn't reach the target set by the company.

The worst production achievement in Unit II could only reach 90% of the target set. This condition of course influence the company's performance. Surely there are several factors that could decrease the company performance. For instance, machine capacity, amount of ingredient resource, amount of human resource and environmental condition, internal and external. Viewed from the production capacity of the machine, amount of ingredient resource and amount of human resource, the unit had no problem as they are all available enough for the targeted production while externally, this unit never gets any disturbance that can disturb production process.

After being reviewed by the manager, the problem is at the internal environment within the unit, started by bad communication between the supervisors, production team supervisor and the employee of the production team. There were a lot of mistakes in receiving the order or information, and so the bad relationship between the two continues. That problem was caused by several factors, for instance, the supervisor who had a bad temper, the number of a new employee that hadn't fully understood the language used in the organization and the other factors. It gave impact to the decreasing work motivation of the employee and of course, it results in the employee performance being under the expectation.

Based on the problem and theories above, this research is purposed to know, (1) Description of organization communication condition, motivation, and employee performance in PT Putri Panda Unit II Tulungagung, East Java, Indonesia; (2) Direct and indirect impact of communication within the organization to employee performance through employee's work motivation at PT Putri Panda Unit II Tulungagung, East Java, Indonesia.

The hypothesis in this research are: (1) Organization communication has a direct impact to the employee motivation at PT Putri Panda Unit II Tulungagung; (2) Organization communication has an indirect impact to employee performance at PT Putri Panda Unit II Tulungagung; (3) Work motivation has direct positive imact to the employee performance at PT Putri Panda Unt II Tulugagung East Java Indonesia; (4) Organization communication has positive impact to the employee performance through employee's work motivation at PT Putri Panda Unit II Tulungagung, East Java, Indonesia.

2. RESEARCH METHOD

Research approach is done through quantitative research. This research is also an explanatory research which explains the causal relationship between the variables through hypothesis testing. This research will use path analysis as this research is used to build relation model occurs between the independent variable (X) and intervening variable (Z) and the dependent variable (Y).

The research design can be seen as drawn below:

Figure 1

Keterangan: X = Organization communication, Y = Employee performance, Z = Motivation.

fig-1.jpg

The population of this research is all 72 permanent employee of the production team of PT Putri Panda Unit II Tulungagung that are divided into 3 (three) different shifts. As the total population at PT Putri Panda is only 72 employee, corresponding to Arikunto (2006:112), if the subject is less than 100 people, it is better to use all of them so that the research will be populational research while the technique to take sample from the population is boring sampling by taking all of the population.

That consept frame can be uttered in two regression equation:

Z=a+β1X+e1
Y=a+β2X+β3Z+e2

Keterangan

X = Organization communication

Y = Employee performance

Z = Motivation

α = Constanta

β1 = the influence of X to Z

β2 = the influence of X to Y

β3 = the influence of Y to Z

e = Standard error

3. RESEARCH RESULT

Data Respondent

The sample used in this research is all permanent employee of PT Putri Panda Unit II Tulungagng, East Java, Indonesia. The respondent has these characteristics:

There are 72 people in total, 33 male, and 39 female. There is 34 employee that is at productive age around 25-30 years old, 17 employees aged around 20-24 years old, 16 employee 31-35 years old and the 5 others are of 36-40 years old.

The educational background of the employee are various starting from elementary school degree (25 employees), junior high school (15 employees) to high school degree (32 employees). The turnover at PT Putri Panda, it can be seen from the age of the unit which is only 11 years but has already got 9 categories of work time.

Research variable description

The description of organization communication condition of PT Putri Panda Unit II Tulungagung based on the questionnaire given has 4,18 of grand mean. That score shows that the organization communication at PT Putri Panda Unit II Tulungagung is in the “Clear” category.

Meanwhile the description of employee's work motivation at PT Putri Panda Unit II Tulungagung based on the questionnaire given scores 4,36 point of grand mean. That score means that the employee's work motivation of PT Putri Panda Unit II Tulungagung is in the "High" category.

Lastly, the description of employee performance condition at PT Putri Panda Unit II based on the questionnaire given has 4,39 point of grand mean. That point shows that the employee performance at PT Putri Panda Unit II Tulungagung is in “High” category.

Path Analysis

Based on the data analysis of the influence of organization communication to employee's work motivation at PT Putri Panda Unit II Tulungagung, with the support of computer programme SPSS version 16.00 shows the result below:

Table 1

Impact of Organization Communication on Employee's Work Motivation.


Coefficients
Model Unstandardized Coefficients Standardized Coefficients T Sig.
B Std. Error Beta
1 (Constant) 15.105 3.264 4.628 .000
Communication .851 .097 .723 8.766 .000
a. Dependent Variable: Motivation
b. R2 = 0.523

From the table above, the equation is

Z=15.105+0.723X+0.691

Based on the regression equation above, it can be interpreted that: If there is an increase on the value of X variable (organization communication) of 1 unit of communication, then the value of Z variable (work motivation) is 0.723 unit of motivation.

The determinant coefficients or R square (R 2 ) is 0.523, which means that the influence of organization communication to work motivation is 52.3%, in the other way the rest 47,7% can be influenced by other factors.

The relation between organizational communication and employee's work motivation at PT Putri Panda Tulungagung based on the standardized beta coefficient shows a positive result (+) 0.723. In conclusion, the hypothesis that states that organization communication give a positive impact on work motivation are accepted.

The impact of organizational communication and employee's work motivation at PT Putri Panda uNit II Tulungagung, with the help of programme SPSS version 16.0 shows the result of:

Table 2

The Impact of Organization Communication and Employee's Work Motivation on Employee Performance.


Coefficients
Model Unstandardized Coefficients Standardized Coefficients T Sig.
B Std. Error Beta
1 (Constant) 14.518 3.288 4.415 .000
Communication .441 .124 .419 3.559 .001
Motivation .336 .105 .375 3.186 .002
a. Dependent Variable: Performance
b. R2 = 0.544

Dari table 2 above, a formula can be derived as follows:

Y=14.518+0.419X+0.375Z+0.675

The regressive equation above can be interpreted as below:

If there is value increase of X variable (organization communication) of 1 unit communication, there will be an increase of 0.419 unit performance on Y variable (employee performance).

If there is value increase of z variable (work motivation) of 1 unit communication, there will be an increase of 0.357 unit performance on Y variable (employee performance).

Determinant coefficient or R square (R 2 ) of 0.544 means that the impact of organizational communication and work motivation on employee performance is 54,4% and the rest 45,6% is determined by other factors. Therefore the hypothesis stating that "Organization communication has a positive impact on employee performance" is accepted. Also the hypothesis stating that "Work motivation has a positive impact on employee performance" is either accepted.

Meanwhile, to know the direct and indirect impact of organization communication on employee performance through employee's work motivation is elaborated in table 3 below:

Table 3

Direct, Indirect and Total Analysis of Path Research.


Path Framework Impact
Direct Indirect
X Z 0,723 -
X Y 0,419 Motivation (0,723x0,375) =0,271
Z Y 0,375 -

Based on Table 3 above, the indirect impact of the X variable (organization communication) on Y variable (employee performance) through Z variable (work motivation) is positive (+) with 0.271 value. In conclusion, the hypothesis "Organization communication has a positive impact on employee performance through work motivation" is accepted.

4. DISCUSSION

Organization Communication of PT Putri Panda Unit II Tulungagung

Based on the result of the questionnaire and interview given to the employee (respondent), discovered that organization communication occurs between employers and employee at PT Putri Pandan Unit II Tulungagung is classified into "Clear" category. This categorization is in correspondent to Davis & Newstorms in Muchlas (2012:271) who explained that communication is information transfer that can be understood by one individual or group to other individual or group. According to Muhammad in Purrrwanto (2013), communication is either verbal and nonverbal communication between information sender and accepted to change some behavior. Referring from several opinions from various experts, communication can be classified into "Very Clear" when the message can be sent by the communicator and received by the communication clearly and when it has good impact or influence for both communicator and communicant on their behavior according to the message transferred.

According to the result of interview and questionnaire were given to the respondent, the condition of organization communication at PT Putri Panda Unit II Tulungagung shows that the messages uttered by the employers had already been received and understood or perfectly encoded by most of the employee. However, there is still some employee ( ± 14% of 72 employees) who felt that the organization communication between.

Unclear message from employers according to some employee opinion occurred because the employers only give them very short messages and the employee are unwilling to confirm the message to their employers. Therefore misunderstanding of the message sent by the employer could not be avoided. Aside from that, the employer attitude in communication that was considered harsh by the employee caused the employee's unwillingness to communicate with the employer. That condition worsened the relationship between the employer and some employee and the communication also didn't go well.

However, the organization communication at PT Putri Panda Unit II Tulungagung is still classified into "Clear" as most of the employee still considered the organization communication between the employer and the employee are clear enoughorganisasi yang terjalin antara.

Work Motivation of the Employee of PT Putri Panda Unit II Tulungagung

Work motivation is a push from within or without the employee's self to receive a target. PT Putri Panda Unit II TUlungagung gives motivation to the employee so that they are able to do and finish their work. Prahiawan & Simbolon (2014) explained that the strongest motivation is intrinsic motivation as it is buried deep inside the employee's self. That statement is in line with the result of the interview done to the employee that stated that employees are motivated more by internal factors than external factors. Employees are more motivated to work when their hope of receiving their work's result is big.

Herzberg in Prahiawan & Simbolon (2014) stated that internal motivation booster factor is motivation. Motivator factor motivates one to work to achieve satisfaction, including success, acknowledgment or prize, that work itself, responsibility, and opportunity to develop. In another way, employee's work motivation can be classified as "Very High" when all of the indicators above are fulfilled.

PT Putri Panda Unit II gave motivation to their employee by giving awards in the shape of the fee, giving them works according to their ability, giving them chance to develop their career and/or ability, also the good working environment (supported by good organization communication).

Based on the result of questionnaire and interview, it is known that the condition of work motivation of the employee at PT Putri Panda Unit II Tulungagung is classified to "High" category.

The biggest motivation of the employee at Putri Panda Unit II Tulungagung in working is their hope to receive the fee for every work they were done. While for the other employee, the factors that are disturbing their work motivation condition is the bad relationship between that employee and the employer, and one of them is a bad communication. That Disturbance came from the pressure that developed from the harsh character of the employer in communication.

Performance of The Employee of PT Putri Panda Unit II Tulungagung

The questionnaire on employee performance at PT Putri Panda Unit II Tulungagung is directly evaluated by the employer using evaluation indicator as mentioned: work quality, work quantity, timekeeping and employee's teamwork in supporting the production plot of the company. Mangkunegara (2009: 67) refers employee performance (work achievement) as the result of work quantitatively and qualitatively achieved by an employee n doing their duty based on the responsibility given to them. Hasibuan (2008: 34) elaborates that performance (or achievement) is the result of work achieved by one in doing the tasks assigned to one based on one's ability, experience, sincerity and time. In correspondence to the experts above, it can be concluded that employee performance can be classified into "Very High" when working quality, quantity, and timekeeping of the employee in finishing their work as assigned by the employer.

This research has some limitation where the researcher use questionnaire on employee performance which is evaluated directly by the employer. Performance evaluation by the employer is purposed to avoid bias and it is hoped that the result of employee evaluation by the employer is objective as employers know the condition of their employee performance. Though so, an evaluation by the direct employer has its own limits as one employer had to evaluate 24 employees. To minimize this limitation, in the description of the condition of employee performance at PT Putri Panda Unit II Tulungagung, the data is supported by the result of an interview done to the employee of PT Putri Panda Unit II and direct observation on the employee performance at PT Putri Panda Unit II Tulungagung.

Based on the result of the employer evaluation, observation and interview done to the employer and the employee of PT Putri Panda Unit II Tulungagung, known that in average the employee had known of the work quality required by the company, target set by the employers, and they are also considered as the disciplined employee. Only in a few employees, the work that they did quantitatively and qualitatively are under the expectation and target set by the employers or the company. That condition can disturb other employee performance and also inhibit the company's plan in the business expand. Disturbing the other employee performance, because the working process in PT Putri Panda Unit II Tulungagung is done by a workflow that the result of every previous process will be continued by the other employee on the next process. However, through a series of interview with the employers, it is actually tolerable as it is in the minimum amount. But it can't be avoided that there is some worry over that condition if it continues on as on long period there will be an increase of problem that started from the previous problem.

Corresponding to the analysis above, in conclusion, the employee performance at PT Putri Panda Unit II Tulungagung is still classified as "High" category of performance.

Direct and Indirect Impact of Organization Communication on Employee Performance through Employee's Work Motivation at PT Putri Panda Unit II Tulungagung

The Impact of Organization Communication on Employee's Work Motivation at PT Putri Panda Unit II Tulungagung

Through data analysis of the questionnaire given to every respondent (employee) at PT Putri Panda Unit II Tulungagung shows that organization communication has the positive impact on the employee's work motivation. That result is in line with organizational communication theory by Weick in Littlejohn Foss (209:225) that explains that the main function or purpose in communication is to minimize equivocality in an informatical environment. Equivocality is liability that can't be separated from an informatical environment of a company. In an equivocal situation, there is a lot of interpretation that can be used in one event. With this, communication can give some kind of clearance of what needs to be done, how to do it, and how much need to be done. Next, explained by Suprapto (2006: 7), when communication between employer and employee is effective, there will occur the same interpretation of the information, idea, thinking, and behavior. Employers will know what the employees want and the employees will also know what their employers want related to the work. Tonapa (2013) Also explains that the impact related to organizational communication is the behavioral impact, in another way the impact occurred to communicant in the form of one's behavior, act, and work motivation. The result of the research is behavioral, and the impact of the communicant here also support the previous researches by Rajhans, K. (2012), Tonapa, Y. (2013), Purwanto, Sony B. (2013), and Syahrani, Abdul W. Abdullah, M. & Widyanti, R. (2014).

The Impact of Organization Communication on Employee Performance at PT Putri Panda Unit II Tulungagung

Based on the analysis there is positive relation between organization communication and employee performance at PT Putri Panda Unit II Tulungagung. That result shows that if communication between the employers is getting fixed or improved, then there will be an improvement in the employee performance. In other words, if the company wants to improve their employee performance, then they need to improve or fix the organization communication as one mean of the solution. Organization communication done by employers to their employee at PT Putri Panda Unit II Tulungagung is a communication related to giving order or instruction about work, working method, work quality and quantity, and also the deadline of the work.

The result of the analysis is in line with the organization control theory by Cheney in Littlejohn and Foss (2009:254-257) who said that employers communicate in the organization by building some control over the employee. That theory explains that employers use communication in controlling the employee performance. The better the communication the better their employee performance is. There are two kinds of control used by employers to the employee at PT Putri Panda Unit II Tulungagung which are:

Simple control: such as orders, open use of authority, where the employers are content to accept feedback from the employees over the order the employers gave.

Technical control: where the company has given a set of limitation to the tools used by the employee. For instance, work tool and/or facilities can only be used to complete the task or work given.

Moreover, communication also maintains the relation between employer and employee, as explained by Femi (2014), showing the relationship between communication and employee performance as follows, “Effective communication creates mutual understanding between management and workers which helps in building genuine relationship among both parties in the organizations. Also, this study reveals that poor communication can affect workers performance.”

The result of this research supports the result of precious researches by Kiswanto, M (2010), Rajhans, K. (2012), Safitri, Husnaina M., Amir. & Shabri, M. (2012), Tonapa, Y. (2013), Purwanto, Sony B. (2013), and Femi, F. (2014).

The Impact of Work Motivation on Employee Performance at PT Putri Panda Unit II Tulungagung

Based on the analysis of the impact of work motivation on employee performance at PT Putri PandaUnit II Tulungagung, motivation has the positive impact on employee performance at PT Putri Panda Unit II Tulungagung. The biggest motivation is the financial reward (fee). The result shows that employee works to achieve their work in receiving the fee for every work they were done. Wor motivation is an important factor in determining employee performance. Explained by Mengkunegara (2009:67), that factors that have the impact on performance are ability an motivation. As goes Stoner in Notoadmodjo (2009:125), that an employee or work performance is affected by motivation, ability and perception factor. The relation between work motivation and employee performance can also be based on a theory of hope by Vroom and Gudono (2014:52-53) which explains that an employee will be motivated by a hope that is wanted to be achieved and one way to achieve it is by working. The bigger the hope is the bigger the work has to be done to achieve it.

This research result also supports the result of previous research by Potu, A. 2013, Purwanto, Sony B. (2013), and Prahiawan, W. & Simbolon, N. (2014).

The Impact of Organization Communication on Employee Performance through Employee's Work Motivation at PT Putri Panda Unit II Tulungagung

Not only having the direct impact on employee performance, organization communication has also the indirect impact on employee performance through employee's work motivation at PT Putri Panda Unit II Tulungagung. The result is inline with the linking pin model theory by Linkert, which explains that if we (employers) have good communication with the employee, the employee will be motivated and productive (Littlejohn and Foss, 2005:244). Parallel to the theory, Sopiah (2008:142) explains that communication functions to employee motivation. This function works when the manager wants to improve the employee performance, for example, the manager explains or gives information about how good has the employee work and how they could improve their performance. Another opinion uttered by Muchlas (2012:274) explains that communication also maintains motivation by explaining to the employee the thing they need to do, how do they should work, and things that can be done to improve work achievement.

Organization communication at PT Putri Panda Unit II Tulungagung takes a role in maintaining the relationship between employer and employee, as the information of what work needs to be done, how to do it, and how many should be done. So organization communication is fixed or improved, the communication functions above will be accomplished that employee's work motivation will also improve. Along the improvement of that motivation the employee performance is hoped to be improved also.

This research result also supports previous researches by Rajhans, K. (2012), and Purwanto, Sony B. (2013). Based on the analysis of the direct and indirect impact of organization communication to employee performance through work motivation of the employee at PT Putri Panda Unit II Tulungagung, discovered that direct impact of organization communication on employee performance is bigger than the indirect impact of organization communication on employee performance.

In the effort of improving employee performance, researcher reccomendates to make the direct path of organization communication to employee performance as the impact would be bigger than the impact of organization communication on employee performance through improvisation or renovation of employee's work motivation.

5. CONCLUSION AND SUGGESTION

Based on the data analysis, interview and observation can be concluded that the condition of organization communication is classified as clear, employee's work motivation is classified into high and employee performance is classified as high in PT Putri Panda Unit II Tulungagung. While the direct and indirect impact of organization communication on employee performance through employee's work motivation at PT Putri Panda Unit II Tulungagungcan be explained as follows: (1) Organization communication has direct positive impact on employee performance at PT Putri Panda Unit II Tulungagung; (2) Organization Communication has positive impact on employee's work motivation at PT Putri Panda Unit II TUlungagun; (3) Employee's work motivation has positive impact to employee performance at PT Putri Panda Unit II TUlungagung; (4) Organization communication has indirect positive impact to employee performance through employee's work performance at PT Putri Panda Unit II Tulungagung.

Based on the conclusion of the research, researcher suggests: (1) Improving or reconditioning organization by conducting some activities together outside the working time, that is by having recreation and outbound. Those activities are also expected to be able to make the relationship between employers and employee be better. An employee will be able to accept the employer's character that previously seen as harsh, the employee will be more comfortable to communicate with the employer; (2) Employee and direct employers at the production team of PT Putri Panda Unit II Tulungagung hopefully willing to improve feedback in communication.

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