CAREER DEVELOPMENT, SALARY AND EMPLOYEE/STAFF MOTIVATION INFLUENCE ON JOB SATISFACTION IN TIMOR COOP

CAREER DEVELOPMENT, SALARY AND EMPLOYEE/STAFF MOTIVATION INFLUENCE ON JOB SATISFACTION IN TIMOR COOPERATIVA CAFÉ

COMPANY (CCT), TIMOR LESTE

 

Adolmando Soares Amaral (Corresponding author)

Universidade da Paz Timor-Lesté (University of da Paz)

Email: f5.lacon@gmail.com

 

Abstract: This study aims to determine the effect of career and salary development on employee/staff motivation in increasing job satisfaction at the Cooperativa Café Timor (CCT) Company, Dili Timor-Leste. The sample population taken in this study were employees/staff at the Cooperativa Café Timor (CCT) Company. Hypothesis testing with the SPSS program from equation 1 and equation 2 gives the result that the direct coefficient value between career development and job satisfaction was greater than the coefficient value of the indirect relationship, namely the interaction of the standardized coefficient of career development and the standardized coefficient of employee/staff motivation and the interaction of the coefficient value. Standardized salary on employee/staff motivation, the relationship between career development and job satisfaction is a direct relationship. So employee/staff motivation does not influence or mediate the influence between career development and job satisfaction and also employee/staff motivation influences or mediates salary on job satisfaction. It means that employee/staff motivation is not an Intervening variable.

 

Keywords: Career Development, Salary, Motivation and Job Satisfaction.

 

 

1. 1. Introduction

The following are important reasons that show how the role of career development and salary can motivate employees/staff in increasing job satisfaction in the company. First, career development. Fubrin J. Andrew (2005: 77-78), suggests that career development is an employment activity that helps employees plan their future careers in the company so that the company and the employees concerned can develop themselves to the maximum. Veithzal Rivai (2009: 286). One way to develop employee careers is through promotions, namely transfers that increase the authority and responsibility of employees/staff to positions.

 

Salary is a gift to employees/staff with financial payments as remuneration for the work carried out and as a motivator for the implementation of activities in the future. The reward study Berkowitz and colleagues concluded that the perceived value of one's work and honorarium rewards over self of someone are important predictors of Berkowitz's salary satisfaction. If the level of reward is perceived as unfair, job holders will experience dissatisfaction and seek ways to seek greater rewards (Gibson, 1992).

 

The explanations above have shown how the importance of career development and salary factors affect employee/staff motivation in increasing job satisfaction. Both theoretically and empirically show that there is a close relationship between career planning and salary on employee/staff motivation in increasing job satisfaction. The implication is that if career development policies and salary policies are not considered, employee dissatisfaction with careers and salaries will appear so that it can affect the motivation of employees/staff in the company in increasing job satisfaction. The company should pay close attention to these factors so that it can encourage high job satisfaction of employees/staff at the company. These logical reasons become a strong basis for researchers to examine the relationship between career development and salary on employee/staff motivation in increasing employee job satisfaction that occurs in the company.

 

1. 2. Formulation of the Problems

The theoretical studies above show that the level of job satisfaction is influenced by problems: working conditions, supervision, career development, and salary. Career development and salary were selected as factors influencing employee/staff motivation in increasing job satisfaction at the Cooperativa Café Timor (CTT) Company, Dili, Timor-Leste.

 

1. 3. Purpose of Research

In accordance with the formulation of the problem above, the purpose of this study is to determine the effect of career development, salary and motivation of employees/staff on job satisfaction at the Cooperativa Café Timor (CCT) Company, Dili, Timor-Leste.

 

2.1. Literature Review

2.1.1. Career Development

Over the span of a person's life. Career planning is a deliberate process through which a person becomes aware of the attributes associated with a personal career and a series of steps throughout life contributing to career fulfilment.

 

2.1.2. Definition of Career Development

Veithzal (2009: 286), states "career planning and career development are critical tools where management can increase productivity, improve employee attitudes towards work and increase employee satisfaction and higher employee loyalty".

 

2.1.3. Career Development Dimension

Career development is openness and clarity of career paths as well as opportunities to occupy certain positions in the company. (Adapted from Gibson, 1992). (1). Career development opportunities: Opportunities provided by the company to develop the careers of employees/staff while working at the company, as well as clarity on career advancement in the future (2). Capacity building of employees/staff: Efforts given by the company to improve the careers of employees/staff. (3). There needs to be efforts from the company to improve the careers of employees/staff.

 

2.1.4. Salary

Employees are satisfied with their salaries if the salary system in the company considers the determination of salaries and not only pays attention to the principle of Internally Equitable (fairness within the company) which is based on the principle of fairness but also must have a competitive value in the market (Externally Equitable). Salary can be interpreted that someone will be satisfied with his salary when the perception of salary and what they get is as expected. Several studies identified aspects of satisfaction that were found to be associated with an individual's desire to leave the organization including satisfaction with wages and promotions Lum et al., (1998); Tett & Meyer (1993). Hellriegel & White, 1973; Koch & Steers, 1978; Kraut, 1975; Mobley et. al., 1978). The salary which is expressed in the form of money as a reward from the employer to the employee is determined and paid according to a work agreement, agreement, or statutory regulations, including allowances for workers and their families for a job and/or service that has been or will be performed.

 

2.1.5. Definition of Salary

Lum et al., (1999), salary satisfaction can be interpreted that a person will be satisfied with his salary when the perception of salary and what they get is as expected. Several studies identified aspects of satisfaction that were found to be related to an individual's desire to leave the organization including satisfaction with wages and promotions. (Hellriegel & White, 1973; Koch & Steers, 1978; Kraut, 1975; Mobley et. al., 1978), salary satisfaction can be interpreted as that a person will be satisfied with his salary when the perception of salary and what they get is as expected. Several studies identified aspects of satisfaction that were found to be related to an individual's desire to leave the organization including satisfaction with wages and promotions.

 

2.1.6. Salary Dimension

Salary is compensation received as remuneration from the company to employees/staffs. (Adapted from Robbins, 1996 (1). Salary eligibility: Compatibility of salary received with the necessities of life (2). Salary equity: Compatibility of salary received with the potential of the employee/staff. (3) Compatibility of salary with workload.

 

 

 

 

2.1.7. Employee/Staff Motivation

Motivation comes from the Latin word "movere" which means to push or move. Motivation (motivation) in management is only intended for human resources in general and subordinates in particular.

 

2.1.8. Definition of Employee/Staff Motivation

William J. Stanton defines motivation "A motive is a stimulated need that is oriented towards individual goals in achieving satisfaction". Meanwhile (Mangkunegara, 2001: 68), says that motivation is formed from the attitude of an employee in dealing with work situations. Motivation is a condition that moves employees who are directed to achieve organizational goals (work goals). According to Nawawi (2001: 351), that the word motivation (motivation) is basically a motive (motive) which means encouragement, cause or reason for someone to do something. Thus, motivation means a condition that encourages or causes a person to do an act/activity, which takes place consciously. According to Sedarmayanti (2001: 66), motivation can be interpreted as a driving force that causes people to do something or are done because they are afraid of something. For example, if you want to get promoted or increase your salary, your actions will support the achievement of that desire. The driving force in this case are various factors, including the factor of wanting to be more respected among colleagues or the environment and the need for achievement.

 

2.1.9. Employee/Staff Motivation

Dimension Employee/staff motivation is defined as a force that encourages someone to take certain actions or behave in certain ways (Amstrong, 1994 in Kurniawan, 2004). Employee/staff motivation was measured using the Dubrin (2000) instrument. (1). The encouragement to achieve an achievement (2). The encouragement to get self-recognition (3). Awareness of the work itself (4). Relationship with superiors and among colleagues (5). Compatibility of salary with workload (6). Job security guarantee.

 

2.1.10. Job Satisfaction

Job satisfaction is an individual orientation that affects the role in work and the characteristics of the job. Thus, job satisfaction is a pleasant or unpleasant emotional state in which employees view their work. Job satisfaction is a reflection of a person's feelings towards his job.

 

2.1.11. Definition of Job Satisfaction.

As for Robbins (2001), job satisfaction is defined as a general attitude of an individual towards his work, the difference between the amount of rewards received by a worker and the amount they believe they should receive. An employee's assessment of being satisfied or dissatisfied with his job is a complex summation of a number of discrete (differentiated or separate) job elements. Job satisfaction is determined by several factors, namely mentally challenging work, supportive working conditions, supportive co-workers, and the suitability of personality with work. A person's perception may not be a complete, concrete reflection of work, and each individual in the same situation may have a different view.

 

2.1.12. Job Satisfaction Dimension

Job satisfaction is a reflection of employee/staff feelings towards work and work environment. (Adapted from Jewel and Siegal, 1998). (1). Working conditions: a reflection of how the employee/staff feels about the work assigned to him/her. (2). Leadership behaviour: a reflection of the feelings of employees/staff towards the behaviour of superiors at work. (3). Interaction with co-workers: a reflection of employee/staff feelings towards relationships with fellow co-workers. 3.1 Research Methodology 3.1.1 Population and samples Cooper and Emory (1995: 214), say the population is the entire collection of elements that can make some conclusions. While Arikunto (1998: 115), said that the population is the entire subject of research. The population in this study are employees of CCT companies. Because the population in this study was relatively small, all (census) were taken as samples. Description of 80 employees/staff of CCT Company.

 

Table 3.1

 

3.1.2. Research Instruments

The research instrument used to collect data in measuring indicators is a structured questionnaire based on a Likert Scale with answer options 1 to 5 (from very low to very high). This questionnaire is in the form of questions that describe each indicator, so that data is obtained which is then used for hypothesis testing. The questionnaire must be valid and reliable.

 

3.1.3. Variable Measurement

Measurements for the two independent variables Career Development and Salary on Employee/staff motivation, as an intervening variable and one dependent variable on Job Satisfaction, all use a Likert scale with five measurement scales.

 

3.1.4. Analysis Tools

Validity and Reliability The instrument (question list) used in collecting data must meet two requirements, namely validity and reliability.

 

4.1. Finding and Discussion

4.1.1. Research Results and Discussion

 

Reliability Test

To discover this test using the Cronbach Alpha value, if the Cronbach Alpha value is 0.60, it is said that the questionnaire is reliable or consistent (Nunnaly, in Imam Ghozali, 2005). Based on the results of calculations with the help of the SPSS program, the variables for career development, salary, employee/staff motivation and job satisfaction are as shown in Table 1.

 

Table 1

 

Table 1 shows that all the list of questions with the value of r calculated > r table product moment for degree of freedom (df) = n-2 = 80-2 = 78 and = 0.05 obtained a value of 0.219, so it can be concluded that all the list of questions given by respondents regarding career development variables from the first indicator, second indicator and third are fulfilling the validity requirements.

 

Table 2

 

Table 2 shows that all the list of questions with the value of r calculated r table product moment for degree of freedom (df) = n-2 = 802 = 78 and = 0.05 obtained a value of 0.219 so it can be concluded that all the list of questions given by respondents regarding salary variable from the first indicator to the third indicator is to meet the validity requirements.

 

Table 3

 

Table 3 shows that all the list of questions with the value of r calculated r table product moment for degree of freedom (df) = n-2 = 80-2 = 78 and = 0.05 obtained a value of 0.219 so it can be concluded that all the list of questions given by respondents regarding employee/staff motivation variable from the first indicator to the sixth indicator is to meet the validity requirements.

 

Table 4

 

Table 4 shows that all of the list of questions with the value of r calculated r table product moment for the degree of freedom (df) = n-2 = 80-2 = 78 and = 0.05 obtained a value of 0.219, so it can be concluded that all the list of questions given by respondents regarding The Job Satisfaction variable from the first indicator to the second and third indicators is to meet the validity requirements.

 

Table 5

 

Table 5 shows that all variables have a Cronbach Alpha value of 0.60, so it can be concluded that all variables meet the reliable or consistent requirements.

 

4.1.2. Hypothesis Testing Results

The statistical method used to test the proposed hypothesis is a regression test with path analysis. To measure the effect of the independent variable (X) on the dependent variable (Y) by using (path analysis), the magnitude of the influence of X1, X2 and X3 on Y.

 

Path Analysis Diagram Figure 1

Equation diagram model I (first regression model)

 

 

Table 6

Tabel 7

 

Table 8

 

Based on the results of the path analysis above, the results of hypothesis testing can be described as follows: Where the results of the path analysis show that career development can have a direct effect on job satisfaction and also an indirect effect, namely from career development to employee/staff motivation (as an intervening variable) then to job satisfaction. The magnitude of the direct effect (P3) is 0.086 with the magnitude of e1 (variance of job satisfaction variables that cannot be explained by career development at the Cooperativa Cafe Timor (CCT) company in Dili, (1-R²)² (1-0.153)² = 0.0234 while the magnitude of the effect is not the direct relationship coefficient (P1 x P2) is 0.280 x 0.058= 0.01624. Because the direct relationship coefficient is greater than the indirect relationship coefficient, it can be concluded that the actual relationship is a direct relationship, meaning that career development variables have a direct and positive effect on job satisfaction because P1 x P2

 

The results of hypothesis testing show that the direct coefficient value between career development and job satisfaction is greater than the coefficient of the indirect relationship, namely the interaction of the standardized coefficient of career development and the standardized coefficient of employee/staff motivation, so the relationship between career development and job satisfaction is a direct relationship. And employee/staff motivation influences or mediates the relationship between career development and job satisfaction. Career development has a positive and significant effect on job satisfaction, and in turn employee/staff motivation has a positive effect on job satisfaction, so hypotheses 1 and 2 are not proven.

 

Path Analysis Diagram Figure 2

Model diagram equation II (second regression model)

Table 9

 

Table 10

 

Table11

Based on the results of the path analysis above, the results of hypothesis testing can be described as follows: Where the results of the path analysis showed that salary could have a direct effect on job satisfaction and also an indirect effect, namely from salary to employee/staff motivation (as an intervening variable) then to job satisfaction . The magnitude of the direct effect (P3) is 0.120 with the magnitude of e3 (variance of job satisfaction variable) which could not be explained by the salary at the Cooperativa Cafe Timor (CCT) Company in Dili, (1-R²⁾² = 1- 0.020 = 0.004 while the magnitude of the indirect effect was calculated by multiplying the coefficient the indirect (P4 x P5) is 0.127 x 0.058 = 0.007366. Because the coefficient of the direct relationship was greater than the coefficient of the indirect relationship, it could be concluded that the actual relationship was a direct relationship, meaning that the salary variable was directly and positively related to job satisfaction because P4 x P5

The results of hypothesis testing gave the results that the direct coefficient value between salary and job satisfaction was more basic than the coefficient value of the indirect relationship, namely the interaction of the standardized salary coefficient value and the standardized coefficient value of employee/staff motivation, then the relationship between salary and job satisfaction was a direct relationship, and motivation employees/staff influenced or mediated the relationship between salary and job satisfaction. Salary had a positive and significant effect on job satisfaction, and in turn employee/staff motivation had a significant and positive effect on job satisfaction, so hypotheses 3 and 4 were not proven.

 

4.1.3. Regression Coefficient of Independent Variable

To calculate the coefficient of the independent variable which has the greatest influence on the dependent variable in this case job satisfaction.

 

Table 12

The results of the path analysis showed that career development and salary could have a direct effect on job satisfaction. Because the direct correlation coefficient was greater than the indirect relationship coefficient, it could be concluded that the actual relationship was a direct relationship, meaning that career development and salary variables had a direct and positive effect on job satisfaction. This study proved that if the Cooperativa Café Timor (CCT) Company, Dili, Timor-Leste, paid attention to the careers and salaries of employees/staff on an ongoing basis, the job satisfaction of employees/staff would be higher. The more often the Cooperativa Café Timor (CCT) Company, Dili, Timor-Leste, carried out activities that were designed to help improve the career development process and salary, the higher the employee/staff job satisfaction with the Cooperativa Café Timor (CCT) company would be, which is extraordinary.

 

Hypothesis testing with the intervening variable showed that the actual relationship of career development and salary to job satisfaction is a direct relationship without going through the employee/staff motivation variable as an intervening variable, it can be seen from the SPSS output results from testing equation 1 and equation 2 given the results that the direct coefficient value between career development and job satisfaction is greater than the coefficient of the indirect relationship, namely the interaction of the standardized coefficient of career development and the standardized coefficient of employee/staff motivation and the interaction of the standardized salary coefficient on employee/staff motivation, so the relationship between career development and Job satisfaction is a direct relationship. So, the motivation of employees/staff does not influence or mediate the influence between career development and job satisfaction and also employee motivation affects or mediates salary on job satisfaction. It means that employee/staff motivation is not an Intervening variable.

 

4.3. Suggestions

In this study, we will see how Cooperativa Café Timor (CCT) Company can motivate employees/staffs to develop and use their full potential? How do organizations or companies use formal and informal mechanisms to help employees reach positions and careers related to development and learning goals? How managers and supervisors help employees reach positions and careers related to the development and corporate goals of Cooperativa Café Timor (CCT), Dili, Timor-Leste. People's motivation is to point them in a certain direction and take steps to ensure that they get to a destination. Employee/staff satisfaction on the salary received, based on equity theory regarding employee/staff motivation to act in the organization. That salary satisfaction is caused by feelings related to a sense of justice for the salary paid. If the salary received by the employee/staff is less than the others, there will be a feeling of injustice (inequitable) for the payment given. That is why the Hygiene factor or extrinsic factor in motivation consisting of wages/salaries, job security results in job dissatisfaction.

 

4.4. Limitations of Research and Future Research Agenda

The limitations of this research, along with future research agendas, are as follows: a. In this study, job satisfaction variables are only influenced by career development and salary, so for future research needs, other factors need to be considered, such as: location, large number of companies. b. The career development implemented at the Cooperativa Café Timor Company in Dili has been quite good directly for job satisfaction. Thus the company is expected to improve employee career development through intensive education and training. c. Salary has an indirect effect on job satisfaction. However, the company is still expected to provide salaries in accordance with educational background, work experience and workload given.

 

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