1. Introduction
Power Generation Unit (PGU) for the Sumatra – Indonesia area has been designated by PJBS LTD as a Go Live Implementation of CMMS Maximo-based Generation Management. So that it is expected to be able to increase the maturity level of business processes which will lead to increased operational performance. The challenge to accomplish the established program requires human resources as a top priority for the organization. Managing human resources is not an easy task due to many factors, one of which is proper job placement which is expected to increase job satisfaction and employee organizational commitment.
Behavioral approaches in organizations place that humans in organizations are a very complex element, an understanding of theory supported by empirical research is needed before being applied in managing humans themselves effectively. Various variables that become determinants of organizational commitment implemented through the organizational behavior approach, which is directly and indirectly influenced by learning so that employee behavior can be analyzed and managed to improve its performance (Bonner, 1999).
Organizational commitment is the extent to which individuals adopt the organization’s values and goals and identify with them in fulfilling their job responsibilities (Tanriverdi, 2008). There are many factors that influence organizational commitment, including job satisfaction and job placement. Job satisfaction refers to employees’ “general attitude of employees towards their work”. According to Locke (1976), job satisfaction is the positive impact of employees on their work or job situation. Meanwhile, according to Nelson and Quick (2009) stated job satisfaction is “a pleasant or positive emotional state resulting from an assessment of one’s work or work experience”.
Organizational commitment can be understood with Social exchange theory (Blau, 1964). This theory reveals that employee expectations that are seen in norms and attitudes have an effect on a person’s interests and behavior (Scholl, 1981; Salancik, 1977; Staw, 1977). Blau (1964), stated that individuals have dependence so that there is an exchange of rewards. Rewards can be financial or non- financial. When the company provides clarity in the signs for the level of office, it will lead to a positive attitude in the form of satisfaction and organizational commitment expected by the company. Many studies have stated that job satisfaction is considered a significant determinant of organizational commitment (Lincoln & Kalleberg, 1990; Mowday et al., 1982; Williams & Hazar, 1986). On the other hand, organizational commitment is a cause of job satisfaction (Vandenberg & Lance, 1992). When an employee is happy with their employment, they are more devoted to the company, and vice versa. If employees are dedicated to the organization, they will be able to determine its aims and values while also having a strong desire to join the business and demonstrate positive conduct.
Employee placement is a challenge in a company; it is required to place personnel in the appropriate positions to have a good impact, and vice versa, improper placement will negatively impact the firm’s operational activities. For the power generation unit (PGU) in the Sumatra area of PJBS LTD, which is dominated by young employees, it is very risky for organizational commitment because the commitment of young employees still needs to be questioned. So that employees must be facilitated to participate in company activities to strengthen employee commitment in the long term and company development in the current competitive era.
Given this occurrence, it is reasonable to question the organizational commitment of the organic staff of the PGU Sumatra area, especially given that the average age of the personnel is still quite young. Furthermore, researchers have not discovered previous studies that employ the variable job placement in relation to organizational commitment, which is surely intriguing to pursue additional research. Therefore, the relationship between job placement and organizational commitment becomes origin in this study. Organizational commitment in this study employee attitudes towards several aspects of work. Through proper work placement, it is hoped that employees will provide positive behavior to the company.
2. Literature Review and Hypothesis
Placement is guided by the assignment of individual ratings and responsibilities, identifying individuals with specific jobs. Employees who are placed in certain positions must have the necessary competencies to carry out work effectively and efficiently. It is hoped that the principle of “the right man in the right place and the right man behind the right job” will be achieved if the employees who are placed have competencies in accordance with the needs of the available positions or positions. According to Schuller and Jackson (1997), placement is related to matching someone with a position that will be held based on the needs and knowledge, skills, abilities, and personality of the employee. The opinion of Schuller and Jackson (1997) is also reinforced by Mathis and Jackson (2006). Ardana et al. (2012) stated that placements that are not in accordance with educational backgrounds can lead to dissatisfaction and lack of employee work contributions to the company. Several researchers examined the relationship between job placement and satisfaction. Job placement has no significant effect on job satisfaction (Agustriyana, 2015) while according to Ramadhenty et al. (2019) Job placement has a significant positive effect on job satisfaction. There is still little research on the relationship between these two variables, so it is necessary to do further research. So that the hypothesis that can be drawn from this research, namely:
H1: Job placement affects the job satisfaction.
The concept of Person-Job Fit proposed by Mathis and Jackson (2006) explained that there are three things that must be met according to the characteristics of the job, namely Knowledge, Skills, and Abilities (KSA). The significant impact of compatibility between KSA and the people who will be placed will increase employee performance, reduce turnover, reduce absenteeism, and other problems in human resource management. Matching someone with a job is not an easy thing to do, especially with employees who are young and have no work experience. Not yet found the effect of the relationship between job placements on organizational commitment as this is a novelty in this research. The hypotheses in this study are:
H2: Work placement has a significant effect on organizational commitment.
Commitment is defined as “an employee level of attachment to some aspect of work”, meaning that commitment is described as a level of employee engagement in several aspects of work (Muthuveloo & Rose, 2005). Modway et al. (1979) and Luthans (2006) stated that organizational commitment is an attitude approach in which commitment is defined as A strong desire to remain as a member of a particular organization; a Desire to work hard according to the wishes of the organization; Certain beliefs, and acceptance of the organization’s values and goals.
Therefore, organizational commitment is a form of employee loyalty and enthusiasm in working for the organization by doing their best and placing organizational goals above their interests. Usually, employees who have a high level of commitment will be more satisfied with their work, not think of leaving the company. However, research from previous research also found that job satisfaction has an effect on organizational commitment. This study will show that job satisfaction is a mediating variable of organizational commitment. This can be understood if employees feel satisfaction at work it will increase loyalty and organizational commitment.
Job satisfaction and organizational commitment are mutually influencing forms. Because both are forms of work-related attitude. Generally, job satisfaction refers to an employee’s attitude towards a job (Hellriegel & Slocum, 2004; Greenberg & Baron, 2008), while organizational commitment is a form of work-related attitude related to the organization (Baron & Greenberg, 1990). Job satisfaction refers to a person’s general attitude towards his work, where individuals who have a high level of job satisfaction will show a positive attitude while dissatisfied individuals show a negative attitude towards their work (Robbins, 2003, 2005; Robbins & Judge, 2015). Meyer and Allen (1991) stated that organizational commitment can be seen from two angles, namely the attitude and behavior approach.
Several empirical studies give inconsistent results on the relationship between job satisfaction and organizational commitment, including Nguyen et al. (2020), who stated that organizational commitment is strongly influenced by job satisfaction; Martono et al. (2020) and Mohammed and Eleswed (2013) explained that employees who experience positive situations at work will be more satisfied at work, and will ultimately increase organizational commitment; Meanwhile, Dong and Phuong (2018) stated that employees who are satisfied with their work will tend to stay, on the contrary, employees who are not satisfied will tend to leave the organization. An empirical study states that job satisfaction has no effect on organizational commitment (Jusuf et al., 2016). In contrast to these findings, there is evidence showing that organizational commitment affects job satisfaction (Kaya & Ceylan, 2014; Poznanski, 1991). There are still many different research findings, further research is needed and there is no research that used the object of a PGU generating unit in the Sumatra area of Indonesia. The hypotheses of this research are:
H3: Job satisfaction affects organizational commitment.
H4: Job satisfaction mediates the effect of job placement on organizational commitment.
3. Research Methods
3.1. Research Variables
This study is a quantitative study to examine the relationship between the hypothesized variables using the survey method. The research variable consists of 3 (three) variables, namely: work placement (X1) as the independent variable, job satisfaction (Y1) as the mediating variable, and organizational commitment (Y2) as the dependent variable. The measurement of the work placement variable (X1) is adapted from Tohardi (2002); Mathis and Jackson (2006), and Bernardin & Russel (1993) which consist of 3 (three) indicators with 12 items. The job satisfaction variable (Y1) refers to the JDI (Job Description Index) developed by Smith et al. (1969) consists of 5 (five) indicators with 22 items and the organizational commitment variable (Y2) adapted from Modway et al. (1979), Allen and Meyer (1990), Meyer and Allen (1991), and Meyer et al. (2002).
Population and Sample. According to Sugiyono (2014), the population is a generalization area consisting of objects/ subjects that have certain qualities and characteristics determined by researchers to be studied and then drawn conclusions. The population in this study was organic/ permanent employees of the PGU unit in the Sumatra- Indonesia area, amounting to 129 people. The sample is part of the number and characteristics possessed by the population’. The sampling technique used a saturated sampling technique. According to Sugiyono (2014), the saturated sampling technique is a sampling technique using all members of the population as a sample. Thus the sample in this study amounted to 129 permanent employees.
Data collection technique. The data collection technique uses a closed questionnaire by providing the answers so that the respondents only need to choose the appropriate column or place. The determination of this closed questionnaire was based on the consideration that this closed questionnaire made it easier for respondents to choose and there was uniformity of answers. The questionnaire measurement using a Likert scale with 5 levels was used in the research questionnaire (from strongly agree to strongly disagree). Questionnaires were distributed via google form to the Human Capital Manager email and then distributed to all respondents. All questionnaires returned and met the requirements for data processing. Data analysis using SPPS software version 24.0. The hypothetical model is shown in Figure 1.
Figure 1: Hypothesis Model
4. Results
4.1. Respondent Profile
Respondents were dominated by 124 male employees (90.1%), and 5 female employees (3.9%). With the most respondents aged 24 to 26 years, 45 (34.9%), and the least at 39–40 years, 3 people (2.3%). The education level of the employees of the Sumatra PGU unit as many as 65 people (50.4%) still holds a high school diploma, while the educational qualification of S2 is only 1 person (0.8%). Operator level positions are mostly 51 people (39.5%), followed by staff level with 48 people (37.2%). This illustrates that the employees of the PGU unit in the Sumatra area are dominated by young people with lower level positions, namely staff and operators because the education level is dominated by high school and men due to field operational work.
4.2. Validity and Reliability
Validity and Reliability. In this study, all questionnaire items were declared valid through the correlation coefficient value of the statement item score with the total score of the other items 0.30, then the statement in the questionnaire was declared valid (Sekaran, 2011). A constructor variable is said to be reliable if it gives a Cronbach Alpha value of 0.7 (Ghozali, 2011; Hair et al., 2010) or 0.4 (Lounsbury et al., 2006). The results of this analysis show that the Cronbach’s Alpha value of all variables is more than 0.6. It was concluded that all variables in this study were reliable.
4.3. Model Analysis
Model analysis. In the first stage, using SPPS version 21.0, a factor test was carried out. The results of the factor test prove that the KMO and Bartlett tests show Sig. = 0.0000 (< 0.05). The KMO coefficient of 0.899 (> 0.005) shows the variables of this study are correlated with each other. In the main component analysis and varimax rotation, the Eigenvalue component > from 1. The Adjusted R Square value of 0.455 means that 45.5% of the variation in job satisfaction can be explained by work placement, and the Adjusted R Square value of organizational commitment is 0.581 which states that 58, 1% variation in organizational commitment is explained by job placement and job satisfaction.
Model testing. Model testing using classical assumption test carried out on the linear regression model used to determine whether the regression model is good or not. The purpose of classical assumption testing is to provide certainty that the regression equation obtained has estimation accuracy, is unbiased, and is consistent. Testing the assumptions that must be met in the regression analysis include a) Normality; through Normal PP Plot images. The criteria for a residual (data) that is normally distributed or not with the Normal PP Plot approach can be done by looking at the distribution of the points in the image. The distribution of points in the Normal PP Plot image is close to a straight line, so it can be concluded from the results of this study that the residual (data) is normally distributed; b) Homoscedasticity, the results of the analysis show that the point distribution does not form a certain pattern/groove, so it can be concluded that the results of this analysis do not occur heteroscedasticity or in other words, homoscedasticity occurs; c) Autocorrelation, Based on the output of the Run Test test, it is known that the value of asymp.Sig. (2-tailed) of 0.929 greater than 0.05, it can be concluded that there is no autocorrelation problem. So it can be concluded that there is no autocorrelation in the linear regression model, d) Multicollinearity test, the results of the analysis state that the VIF value for the work placement and job satisfaction variables are both 1.834, while the tolerance is 0.545. Because the VIF value of the two variables is not greater than 10, it can be said that there is no multicollinearity in the two independent variables.
4.4. Hypothesis Test Results
Hypothesis test. Through the F test on the ANOVA table, where the prob value. The calculated F (sig.) in the results of this analysis is 0.000 less than the 0.05 significance level, so it can be concluded that the estimated linear regression model is feasible to use to explain the effect of job placement on organizational commitment through job satisfaction.
T-test. To test whether the parameters (regression coefficients and constants) that are expected to estimate the multiple linear regression equation/model are the right parameters or not. The test results can be seen in the Coefficients table as shown in the image below. If the prob value. t arithmetic is smaller than the error rate (alpha) 0.05 (which has been determined) then it can be said that the independent variable has a significant effect on the dependent variable, whereas if the value of prob. t count is greater than the error rate of 0.05, it can be said that the independent variable has no significant effect on the dependent variable. The direct and indirect effects of the hypothesis testing of this research model are presented in Table 1.
Table 1: Direct and Indirect Effects
Table 1 shows that of the 4 hypotheses, 3 are accepted and 1 is rejected. The findings of this study are as follows: (1) Based on the SPSS analysis, it produces a path coefficient of 0.674 with a value of <0.000 (alpha 5%) therefore H1 is accepted, meaning that work placement has a positive and significant effect on job satisfaction. (2) The path coefficient is 0.081 with a value of 0.295 greater than >0.005. Therefore, H2 is rejected. In other words, job placement has no significant positive effect on organizational commitment. (3) The path coefficient is 0.709 with a significant value of 0.000 (alpha 5%), therefore H3 is accepted. In other words, job satisfaction has a positive and significant effect on organizational commitment. (4) Path coefficient 0.475 (alpha 5%) is significant, the indirect effect is greater than the direct effect with a value of 0.081. Therefore, H4 is accepted. In other words, job satisfaction (Z) as an intervening variable mediates the effect of job placement on organizational commitment. The research findings are described in Figure 2:
Figure 2: Hypothesis Results
5. Discussion
The results of this study indicate that job placement has a significant positive effect on job satisfaction which confirms the concept of Locke (1976), that job satisfaction is the positive impact of employees on the workplace. On the other hand, the finding are different from the results of a study conducted by Agustriyana (2015), where work placement has no significant effect on job satisfaction as well as the concept of Ardana et al. (2012), who stated that placements that are not in accordance with educational backgrounds can cause dissatisfaction in employees so that employees’ work contributions to the company are less. When related to respondents’ answers, then the skill and ability factor on the employee placement item according to intellectual ability is the factor that has the biggest influence on job satisfaction (0.912). in conclusion, the PGU Sumatra area unit PJBS LTD in the placement of employees always adheres to the principle of “the right man in the right place and the right man behind the right job”. In this way, employees feel that their work placement is in accordance with the educational qualifications required owned.
Another finding is that job placement has a positive and insignificant effect on organizational commitment. This empirical result is a new finding because to the author’s knowledge there have been no studies examining this relationship. Schuller and Jackson (1997), placement related to matching someone with a position who will hold based on the need and knowledge, skills, abilities, and personality of the employee. The opinion of Schuller and Jackson (1997) is also reinforced by Mathis and Jackson (2006).
Furthermore, the study found that job satisfaction has a significant positive effect on organizational commitment. The results of this study indicate that the higher the job satisfaction of the PGU unit employees in the Sumatra area, the higher the level of employee organizational commitment will be. The results of this study support the empirical study of Nga Nguyen et al. (2020), which states that organizational commitment is strongly influenced by job satisfaction; Martono et al. (2020), and Mohammed and Eleswed (2013) employees who experience positive situations at work will be more satisfied at work, and will ultimately increase organizational commitment, Dong and Phuong (2018) stated that employees who are satisfied with their work will tend to stay, on the contrary. Dissatisfied employees will tend to leave the organization.
In previous empirical studies, Jusuf et al. (2016) stated that job satisfaction has no effect on organizational commitment, but there are also previous empirical studies that yielded the opposite finding, namely organizational commitment affects job satisfaction (Kaya & Ceylan, 2014; Poznanski, 1991). The results of this analysis support and expand the theory of social exchange theory (Blau, 1964), which states that individuals have dependence so that there is an exchange of rewards. Rewards can be financial or non-financial. Employees who have job satisfaction, the employee will have a strong commitment to the company. Employees will carry out their duties to the maximum extent possible and even do some things outside of their duties. If it is associated with the respondent’s answer, then the job satisfaction factor itself on the overall job satisfaction item is the most dominant factor (0.950) that affects organizational commitment, so this needs to be maintained. However, when viewed from the organizational commitment of employees formed from the results of this study, it is continual commitment, where the satisfaction felt by employees will increase their commitment because they have no other choice. Therefore, it is necessary for the PGU Sumatra area unit of PJBS LTD to further increase affective commitment to employees because the organizational commitment of employees that is formed is a continual commitment not solely due to job satisfaction, but is more based on the continual commitment which reflects the feelings of employees to remain employees of PJBS LTD. Employees stay because they need (need to) and feel there is no other alternative job because the educational qualifications of employees in the PGU area in Sumatra – Indonesia are dominated by high school/ vocational high school graduates (50.4%).
The novelty of the results of the hypothesis of the effect of job placement on organizational commitment was not significantly positive. However, the effect of job placement on the organizational commitment which was not significantly positive in this study became significant when through the intervening variable job satisfaction. This research model proves that job satisfaction fully mediates the effect of job placement on organizational commitment. Furthermore, the effect of job placement on organizational commitment through job satisfaction is 0.475 and is significantly positive. In other words, job satisfaction fully mediates the effect of job placement on organizational commitment. As a result, the PGU Sumatra area unit PJBS LTD must constantly improve employee satisfaction to increase their employees’ organizational commitment.
6. Conclusion
This study aims to describe the effect of job placement on organizational commitment with job satisfaction as an intervening variable for the Sumatra-Indonesia PGU area using SPPS version 24. Based on previous empirical reviews, there has been no research examining the relationship between job placement and organizational commitment. Several previous studies found that there was an influence and there was no effect of job placement on job satisfaction, job satisfaction on organizational commitment.
The findings of this study indicate there is a direct and indirect relationship between variables. Furthermore, it shows that: (1) job placement has a positive and significant effect on job satisfaction, (2) job placement has a positive and insignificant effect on organizational commitment, and (3) job satisfaction has a positive and significant effect on organizational commitment, (4) Job satisfaction is an important factor that affects organizational commitment because as a mediating variable it strengthens the relationship between job placement and organizational commitment.
Practical implications. The practical implication is that job satisfaction is an important element as a source that can encourage the emergence of organizational commitment and is also a good source in planning employee work placements. Research has shown that job placement results in job satisfaction and is necessary to increase high organizational commitment. PGU Sumatra area unit PJBS LTD should pay attention to educational qualifications in the work placement as well as experience in the field so that employees will feel satisfied with their work and provide a high affective commitment because they feel they belong to the company.
Limitations of research and suggestions for further research. The limitation of the study is that the respondents used in this study are PGU units in the Sumatra area, and therefore may not be generalized to other work units both in Java and outside Java from PJBS LTD, or other electrical services.
It is hoped that future researchers can develop the model that has been built in this study, through variables and indicators that have not been used in this study, especially variables that are not significant; expand work units, and research areas, or conduct research in different organizations, so that the results can be compared to test the generalizability of this research model.
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