The Effect of High Performance Work System and Organizational Support on Employee Performance and Job Satisfaction as a Mediation Variable

Ahmad Zuhri^1*, RR Erlina², Nova Mardiana³

^1,2,3Magister Management, University of Lampung, Indonesia

ABSTRACT: Companies are required to increase their assets due to this high competition, one of the biggest assets that affect company performance is the company’s human resource (HR) assets. This study aims to determine the effect of HPWS and organizational support on employee performance which is mediated by job satisfaction. The sample of this research was 200 employees of PDAM Way Rilau, Bandar Lampung City. Data collection through a questionnaire based on purposive sampling technique and processed using Structural Equation Modeling (SEM) with the help of AMOS software. The results of the study show that the high performance work system has a positive and significant effect on the performance of PDAM Way Rilau Bandar Lampung employees, organizational support has a positive and significant effect on employee performance, job satisfaction has an effect on employee performance, job satisfaction mediates the effect of high performance work system on employee performance, job satisfaction mediates the effect of organizational support on employee performance. Organizations must pay more attention to employees, which can be in the form of motivation or awards given to employees, and management can also supervise their employees more in completing their work according to the allotted time.

Purpose: This study aims to determine the effect of HPWS and organizational support on employee performance which is mediated by job satisfaction

Patients and methods: The sample of this research was 200 employees of PDAM Way Rilau, Bandar Lampung City. Data collection through a questionnaire based on purposive sampling technique and processed using Structural Equation Modeling (SEM) with the help of AMOS software.

Results: The results of the study show that the high performance work system has a positive and significant effect on the performance of PDAM Way Rilau Bandar Lampung employees, organizational support has a positive and significant effect on employee performance, job satisfaction has an effect on employee performance, job satisfaction mediates the effect of high performance work system on employee performance, job satisfaction mediates the effect of organizational support on employee performance.

Conclusion: Organizations must pay more attention to employees, which can be in the form of motivation or awards given to employees, and management can also supervise their employees more in completing their work according to the allotted time.

KEYWORDS: High performance work system, job satisfaction, employee performance, organizational support

INTRODUCTION

Industrial competition is currently showing a very rapid increase, many problems are being discovered that can lead to business failure. This business failure can be overcome by

preparing superior and good employees or human resources (Irawati and Carollina, 2017). A company’s management can be said to be successful, seen from the condition of the employees or human resources at work. Companies often face HR problems which sometimes become obstacles to achieving company goals. If human resources carry out their work well and effectively, the successful running of the company will also be effective. It can be said that the success of a company can be seen from the performance of its employees (Lukito and Alriani, 2018) .

One factor that can improve employee performance is the implementation of a High Performance Work System (HPWS). The implementation of a high performance work system (HPWS) is able to maintain and improve performance and reduce obstacles related to effectiveness (Mahmoud and El Sayed, 2017). The relationship between human resource management and individual performance has been focused specifically on high performance work systems (HPWS) which contribute greatly to organizational effectiveness (Kim, Wright, and Su 2010; Subramony, 2009; Sun, Arye, and Law, 2007; Townsend , 2011). HPWS is defined as a human resource management practice designed to attract human resources in a company to develop skills, commitment, and productivity (Datta, Guthrie, and Wright, 2005; pg.135).

High Performance Work System (HPWS) is considered as a means to increase employee motivation, competence and performance. HPWS encompasses a set of separate but interconnected HR practices that can enhance employee competitiveness, including flexible work assignments and adequate job empowerment, rigorous recruitment and selection procedures, extensive training and development, merit-based performance appraisals, and competitive compensation and wages high (Chen et al., 2016).

The implementation of a high performance work system (HPWS) is able to maintain and improve performance and reduce obstacles related to effectiveness (Mahmoud and El Sayed, 2017). The relationship between human resource management and individual performance has been focused specifically on high performance work systems (HPWS) which contribute greatly to organizational effectiveness (Kim, Wright, and Su 2010; Subramony, 2009; Sun, Arye, and Law, 2007; Townsend , 2011).

Companies not only want employees who are capable and skilled, but also have the willingness to develop in order to achieve optimal work results. These optimal results can be achieved by fulfilling employee work rights which will support a sense of job satisfaction (Murtani, 2017). Job satisfaction is a feeling of whether a job is happy or not, which is indicated by the conformity between job expectations and the benefits received from the company (Ridho and Susanti, 2019). Things that include job satisfaction include a person’s condition and behavior. Job satisfaction is not visible in real terms, but can be seen through the results of a person’s work. Job satisfaction is very important to encourage an employee to work more productively (Bahri et al., 2017). A person’s or employee’s attitude towards their work is a reflection of their feelings and experiences whether they are happy or not at work and their hopes that the work will give satisfaction to that person. Dissatisfaction will arise when an employee feels unhappy doing a job (Astuti and Iverizkinawati, 2018). Several studies show significant positive results, such as Chathurika, (2016), Rahmatullah and Siddiqui, (2019), and Maung, (2020), there is a significant positive influence of HPWS on employee job satisfaction.

The problem raised in this research is improving the performance of employees at PDAM Way Rilau, Bandar Lampung City. The organizational support that must be taken into account indicates that this can cause employee satisfaction and performance at PDAM Way Rilau, Bandar Lampung City to be low. Previous research conducted by Bruggen (2015) shows that job satisfaction that is too low will cause employee performance to decrease, whereas with appropriate job satisfaction, employee performance will increase. HR managers must be able to regulate how job satisfaction workers get so they get maximum performance. This research intends to see the effect of HPWS and organizational support on employee performance through job satisfaction for employees at PDAM Way Rilau, Bandar Lampung City. According to the results of interviews with the personnel department, the company demands high performance from employees so that they have double the workload and sometimes have multiple roles or responsibilities. The high performance work system is quite well implemented in the company. For example, employee safety and health guarantees are quite clear, compensation and salary systems are quite clear, although some employees feel the need to increase wages as workload increases

METHOD

This type of research is explanatory research using a quantitative approach. The population in this study were employees of PDAM Way Rilau, Bandar Lampung City, totaling 255 employees. Sampling in this study used a non-probability sampling technique with a purposive sampling approach, namely sampling carried out by selecting samples subjectively by understanding the characteristics of the target group. and observing certain criteria so as to provide the necessary information. (Jundi and Mudiantono, 2016). The sample consideration in the research is employees who work for PDAM Way Rilau employees who have permanent employee status. The sample size of 210 respondents can be said to be suitable for use in quantitative research using a questionnaire. Data that has been collected from the results of questionnaires distributed, data analysis is carried out using statistical programs in the form of SPSS and AMOS. Data analysis methods include descriptive analysis, confirmatory factor analysis (CFA), and structural equation modeling (SEM) analysis

RESULTS

The model goodness of fit test is used to test the model used in the research. According to (Ghozali, 2008), the SEM analysis technique uses several statistical tests to test the hypothesis of the model being developed. Statistical tests are used to measure the level of suitability of the model in research after the assumptions in SEM are met. From the results of the measurement model analysis, it was obtained that the chi-square value = 69.26, which is classified as good fit. While RMSEA=0.000; GFI=0.951; TLI=1.026; AGFI=0.912 meets the criteria and the value shows good fit. The value of df = 0.911 was obtained, with a significance of 5%, and using SEM AMOS. The results of the SEM measurement model data analysis can be seen in Table 1.

Table 1. Measurement of the Level of Conformity of the Goodness of Fit Measurement Model

Source: Processed Data, 2023

Table 1 shows that there are 8 goodness of fit criteria that have met the cut off value, meaning that the evaluation results show that the model is good. This explains that the model used in this research produces the expected level of estimation. Thus, this model is a good and feasible model for explaining the relationship between variables in the model.

The full Structural Equation Model (SEM) analysis was carried out after analyzing the level of unidimensionality of the indicators forming the latent variables which were tested using confirmatory factor analysis. Analysis of the results of data processing at the full SEM model stage was carried out by carrying out suitability tests and statistical tests. The results of data processing for full SEM model analysis are shown in Figure 1.

Figure. 1 Structural Equation Model (SEM) Test Results

(See in PDF File)

3.1 Hypothesis Testing

The model has been tested, so the hypothesis can be tested. The basis for making decisions on hypothesis testing is done by comparing the magnitude of p with a level of significance of 5% (alpha= 0.05), if p is less than alpha then the null hypothesis (H0) is accepted, and if p is greater than alpha, then the null hypothesis ( H0) is rejected. The results of the hypothesis can be seen in Table 2.

Table 2. Standarized Regression Weight Structural Equational Model

Information :

X1: High Performance Work System

Z: Work satisfaction

X2: Organizational Support

Y: Employee performance

3.2 The Effect of High Performance Work Systems on Employee Performance

The influence of HPWS has a positive and significant effect on employee performance. This is known from the p-value < α, namely the p-value is 0.001 while α is 0.05 and obtains a CR value of 2.041 with an estimated value of 0.609, which has a large influence on HPWS. employee performance was 60.9%. This data proves that the right high performance work system (X1) in a certain position has a positive and significant effect on employee performance (Y). H1 is supported.

3.3. The Influence of Organizational Support on Employee Performance

The influence of OS has a positive and significant effect on employee performance. This is known from the p-value < α, namely the p-value is 0.008 while α is 0.05. and obtained a CR value of 1.980 with an estimated value of 0.660, which has a large influence of OS on employee performance of 66%. The research results show that organizational support (X2) has a positive and significant effect on employee performance (Y), where high or low organizational support can make employee performance increase or decrease. H2 Supported.

3.4 The Effect of Job Satisfaction on Employee Performance

The influence of job satisfaction has a positive and significant effect on employee performance. This is known from the p-value < α, namely the p-value is 0.002 while α is 0.05. and obtained a CR value of 2.290 with an estimated value of 0.604, which has a large influence on job satisfaction on employee performance of 60.4%. Research data shows that job satisfaction (Z) has a positive and significant effect on employee performance, thus job satisfaction has a better impact on employee performance. H3 Supported.

3.5. Job Satisfaction Mediates the Effect of HPWS on Employee Performance

The research results show that testing the mediating effect of the HPWS variable on employee performance through job satisfaction:

Figure 2. HPWS Sobel Test Results on Employee Performance Through Job Satisfaction

(See in PDF File)

From the results of the Sobel test calculations, the results obtained were 3,411 > 1.96 and significant at α = 0.000. Thus, job satisfaction acts as a mediating variable between HPWS and employee performance. So, because job satisfaction has a significant influence and acts as a mediating variable, employee performance has a direct influence on HPWS, so the role of Job Satisfaction in mediating the relationship between HPWS and Employee Performance is fully mediating.

3.6 Job satisfaction mediates the effect of OS on employee performance

The research results show that testing the mediating effect of OS variables on employee performance through job satisfaction:

Figure 3 Sobel Test OS Test Results on Employee Performance Through Job Satisfaction (See in PDF File)

From the results of the Sobel test calculations, the results obtained were 3,954 > 1.96 and significant at α = 0.000. Thus, job satisfaction acts as a mediating variable between OS and employee performance. So, because job satisfaction has a significant effect and acts as a mediating variable, employee performance has a direct influence on OS, the role of Job Satisfaction in mediating the relationship between OS and Employee Performance is fully mediating

DISCUSSION

The Effect of High Performance Work Systems on Employee Performance

The results of data analysis show that HPWS has a positive and significant effect on employee performance, so H1 is accepted. The results of this study are in accordance with research conducted by Zhang et al. (2019) which states that HPWS has a positive and significant effect on employee performance which is divided into two dimensions, namely employee performance into two dimensions, namely employee work performance and Organizational Citizen Behavior (OCB). From this research it is known that HPWS can have a significant effect on employee performance when divided into two dimensions, namely employee work performance and OCB, whereas in this study it did not divide employee performance variables, so in this study HPWS had no effect on employee performance. The results of this study are also different from (Takeuchi et al., 2007) which shows that HPWS is positively related to employee performance.

 The Influence of Organizational Support on Employee Performance

The results of this research show that organizational support has a positive and significant effect on employee performance, so it can be concluded that H2 is accepted (significant). This hypothesis means that the organizational support provided by PDAM Wa Rilau is considered capable of meeting the needs of employees such as providing many opportunities for promotion, being willing to help employees when they need special assistance and caring about whether the salary given is appropriate or not received by employees. So that PDAM Way Rilau employees with high organizational support will have a sense of indebtedness so that employees will reciprocate by improving their performance which is characterized by employees complying with existing rules and regulations within the company, employees being able to achieve targets set by the company and employees being able to Complete work accurately according to company standards.

The Effect of Job Satisfaction on Employee Performance

The research results show that job satisfaction has a positive and significant effect on employee performance. This means that when employees feel satisfied with the work results they have achieved and the contribution made by the company for the work produced, then employee performance will also increase because employees feel satisfied with their work.

The Effect of HPWS on Employee Performance Through Job Satisfaction

The research results show that there is a positive and significant positive influence of HPWS on performance through job satisfaction, so H4 is accepted. This is in line with research by Maung, (2020), proving there is a relationship between HPWS and job satisfaction. HPWS, (training, performance appraisal and communication) is focused on creating job satisfaction

And employee.performance. It is hoped that HPWS practices can contribute to employee performance through job satisfaction. Human resources will be more satisfied with their work through the creation of HPWS according to departments. HPWS will create highly skilled, engaged, and empowered employees who experience values and enjoy higher job satisfaction and thus, there is a strong positive relationship between HPWS and job satisfaction.

The Effect of OS on Employee Performance Through Job Satisfaction

The research results show that OS has a positive and significant effect on employee performance through job satisfaction. This explains that the conclusion that can be drawn is that the Perceived Organizational Support variable has a significant effect on the Employee Engagement variable. Where the better the Organizational Support for employees, the better the performance of PDAM Way Rilau Bandar Lampung employees.

The influence of organizational support can influence employee job satisfaction. Employees in the company always want good support from the company so that employees will feel good job satisfaction. According to (Afandi, 2021) meeting employee needs is one of the factors that influences employee job satisfaction. By fulfilling needs well, employees can have a good perception of organizational support for the company and this will also have a positive impact on employee job satisfaction

CONCLUSION

By discussing the research results presented in the previous section, the following conclusions can be drawn.

1. The results of the research show that this research supports the proposed hypothesis, namely that a high performance work system has a positive and significant effect on the performance of PDAM Way Rilau Bandar Lampung employees. The HPWS system implemented by PDAM Way Rilau, Bandar Lampung City has been carried out well and is conducive so that it can have a relatively good impact on the level of performance of each employee.
2. The results of the research show that this research supports the proposed hypothesis, namely that organizational support (Organizational Support) has a positive and significant effect on employee performance. This shows that the higher the perceived organizational support (Organizational Support), the higher the employee’s performance is carried out to company.
3. The results of the research show that this research supports the proposed hypothesis, namely that job satisfaction has a positive and significant effect on employee performance. This shows that job dissatisfaction must be avoided considering that it will have a negative impact that can be detrimental to the organization, such as the number of absenteeism by employees, employee turnover, theft, decreased work motivation and commitment, employees becoming stressed, decreased performance to the most extreme stage, namely employees leaving. organization and providing negative information to others.
4. The results of the research show that this research supports the proposed hypothesis, namely that the role of job satisfaction mediates the influence of a high performance work system on employee performance and has a positive and significant effect. This can be caused by the HR management system implemented at PDAM Way Rilau Bandar Lampung not being able to support employee resilience and satisfaction so that employees cannot continue to improve their performance.
5. The results of the research show that this research supports the proposed hypothesis, namely that job satisfaction mediates the effect of organizational support on employee performance. This shows that job satisfaction mediates the influence of Organizational Support and employee performance together and has a significant effect due to aspects of Organizational Support. Organizational Support has a significant effect because the existing aspects have been fulfilled well, such as the company’s concern for the opinions expressed by employees, the company’s concern for employee welfare, the company’s concern for the goals and values (contributions) provided by employees and the company’s concern for employee problems. related to worK..

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