The Effect of Job Rotation on Employee Performance with Organizational Commitment and Work-Life Balance as Mediating Variables at PT. BPD Lampung

Betty Helen Manurung¹, RR. Erlina², Keumala Hayati³

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

ABSTRACT: High-quality and high-performing human resources have become a crucial issue in companies, especially in addressing business world challenges and supporting the achievement of company goals. Therefore, companies need to focus on talent-based human resource management to enhance and develop employee performance. The Key Performance Indicator (KPI) data of PT Bank Pembangunan Daerah Lampung from 2021 to 2023 shows a decline in the performance of Bank Lampung employees. In fact, the category of unsatisfactory employee performance has increased in the past three years. It is suspected that underperforming employees are experiencing fatigue or boredom with the routine tasks performed over a long period. Hence, this study aims to determine the effect of job rotation on employee performance with organizational commitment and work-life balance as mediating variables at Bank Lampung. This research method is descriptive verification research. The sampling technique used is convenience sampling with a sample size of 282 Bank Lampung employees, both at the Headquarters and branch offices in Lampung Province. The data used is primary data in the form of questionnaires, and the data analysis technique uses Structural Equation Modeling (SEM) with AMOS software.

Purpose: The aim of this research is to know the effect of job rotation on employee performance with organizational commitment and work-life balance as mediating variables.

Patients and methods: Data has been obtained from the answer of questionnaire testing on 282 respondents at Bank Lampung who were used as samples in research using techniques convenience sampling.

Results: This study show that job rotation has a positive and significant effect on the performance of Bank Lampung employees. However, the second and third hypotheses, which state that organizational commitment cannot mediate the effect of job rotation on the performance and that work-life balance cannot mediate the effect of job rotation on the performance of Bank Lampung employees.

Conclusion: Companies can advised to maintain the implementation of the job rotation program by planning a periodic job rotation program schedule and maintaining good employee performance by giving awards for employee achievements to the company and increasing work discipline by giving punishment to employees who are not disciplined regarding working hours. Apart from that, the Human Capital department of Bank Lampung needs to evaluate the work processes carried out and  resolve problems faced by employees so that employees feel comfortable and find it difficult to leave the company/organization.

KEYWORDS: Job Rotation,  Employee Performance, Organizational Commitment, and help Work-Life Balance

I.   INTRODUCTION

Human resources (HR) are one of the valuable assets for a company. Companies must pay attention to talent-based HR management to improve and develop employee performance, which in turn can achieve the desired goals and success for the company (Arianty, 2016). One of the common problems in managing human resources is suboptimal performance  (Hasibuan, 2017). Poor or underperforming HR can affect the achievement of the company’s objectives. PT Bank Pembangunan Daerah Lampung, commonly known as Bank Lampung, is a regional development bank operating in the Province of Lampung. Similarly, the performance of employees at Bank Lampung presents a significant challenge for the company in achieving its vision. Bank Lampung conducts employee rotation as an effort to address these issues. Job rotation is carried out to enhance employees’ knowledge, skills, and experience in specific fields or departments, fill vacant positions, and reduce monotony in a single task. According to Holle, job rotation is a process of moving an individual from one job to another, which can enhance the employee’s abilities and value to the organization. This job movement results in the transfer of tasks and responsibilities from one person to another. Organizations or companies implement job rotation as an effort to reduce employee boredom and fatigue caused by specialized tasks (Holle, 2011). Every worker can experience boredom in their job, especially those who are not subjected to job rotation (Suleman et al, 2022).

The impact of work boredom or monotony includes decreased performance, increased emotional stress, and even the desire to resign from the company where they work. Work monotony can occur if an employee performs routine tasks for years or if they receive less challenging or less meaningful responsibilities from their superiors. Relating to several functions and roles of human resource management mentioned above, job rotation is part of the development function, where job rotation is one of the activities to effectively and efficiently search for, place, and utilize personnel. Proper job rotation procedures can enhance communication between employees, provide insights, and motivate employees working in the banking sector to improve their performance (Fernando and Dissanayake, 2019).

Commitment, according to Allen and Meyer, is something that shows employees have full dedication to their work, making them willing to give their full effort and responsibility to support the welfare and success of the company where they work. Commitment is an important behavioral dimension that can be used to assess employees’ tendencies through relatively strong identification and involvement with the organization (Allen and Meyer, 1990). The higher the commitment an employee has, the more optimally they will work, dedicating their attention, energy, thoughts, and time to their job. The study by Suleman et al. shows that job rotation has a positive impact on employee performance and that organizational commitment mediates the relationship between job rotation and performance (Suleman et al, 2022).

Work-life balance, according to Singh and Khanna, is a broad concept that involves setting the right priorities between work (career and ambitions) on one side and life (happiness, leisure, family, and spiritual development) on the other side (Singh and Khanna, 2018). Work-life balance is the ability of an individual to balance their responsibilities at work and non-work-related matters. The proportion of time spent on achievement of work-life balance. Time for personal enjoyment, family, or people around (Holsman, 2022). The aspects of work-life balance, according to Hudson et al., include time balance, where the proportion of time allocated to work and non-work activities significantly determines the attainment of work-life balance (Hudson et al, 2018).

The common issue that arises is an increase in the unsatisfactory category of employee performance at Bank Lampung. This indicates a rise in the number of underperforming employees at Bank Lampung. Therefore, the background of the problem in this study is the Influence of Job Rotation on Employee Performance with Organizational Commitment and Work-Life Balance as Mediating Variables at PT BPD Lampung.

II.     METHOD

This study uses descriptive and verificative research methods with a survey approach. Primary data were obtained from respondents at the research site, which was the employees of Bank Lampung. Field research was conducted by distributing questionnaires to Bank Lampung employees to be answered. The method used in this research is field research. The population in this study consists of all employees working at Bank Lampung in Lampung Province up to the year 2023, totaling 959 people. The sample size was determined using the Slovin formula. If the population is less than 100 people, the sample size is taken in its entirety, but if the population exceeds 100 people, 10-15% or 20-25% of the population can be taken. Thus, the sample size obtained was 285 respondents, using purposive sampling technique. This study uses SEM-AMOS analysis tools and the Sobel test to measure the Influence of Job Rotation on Employee Performance with Organizational Commitment and Work-Life Balance as Mediating Variables at PT BPD Lampung.

III.     RESULTS

Structural Equation Modeling (SEM) is a second-generation multivariate analysis technique that allows researchers to examine complex relationships between variables, both recursive and non-recursive, to obtain a comprehensive picture of the overall model. SEM is conducted with the assistance of the AMOS program. The measurement stage for the indicators forming the latent variables in the research model is performed using Confirmatory Factor Analysis (CFA). CFA is a prerequisite for analyzing the model using SEM. The latent variables or constructs used in this research model consist of two exogenous variables, one endogenous variable, and one mediating variable. The Goodness of Fit test is used to evaluate the model employed in the research. SEM analysis techniques use several statistical tests to test the hypotheses of the developed model. These statistical tests are used to measure the model’s fit in the research after the work and   non-work   activities   greatly   influences   the assumptions in SEM are met. The results of the SEM measurement model analysis can be seen in the following table:

Table. 1 Goodness of Fit

Table 1results of the Goodness of Fit Index analysis the Structural Equation Model of this study is considered good because, according to Brown and Cudeck (1993), a model is deemed to fit well if it has an RMSEA value of less than 0.08 (good fit). The safety threshold for the number of residuals is 5%. If the number of residuals exceeds 2% of all the covariance residuals generated by the model, then a modification needs to be considered. If the findings show that the residual values generated by the model are quite large (i.e., > 2.58), another way to modify the model is by considering adding a new path to the estimated model. Residual values greater than or equal to ±2.58 are interpreted as statistically significant at the 5% level (Ferdinand, 2012), and these significant residuals indicate a substantial prediction error for a pair of indicators The results of the data analysis for the full SEM modelare presented in Figure 1.

Figure 1. Result of the Structural Equation Model (SEM)   (See in PDF File)

Figure 1 shows the measurement stage for the indicators forming the latent variables in the research model is performed using Confirmatory Factor Analysis (CFA). CFA is a prerequisite for analyzing the model using SEM. The latent variables or constructs used in this research model  consist of two exogenous variables, one endogenous variable, and one mediating variable, with a total of 40 indicators. The validity of a questionnaire can be determined by examining the loading factor through the SEM AMOS application, witha loading factor value > 0.50. Furthermore, the loading factors in show the values of each indicator relative to the variables. The results of the loading factor analysis show that there is no need for evaluation of the coefficient of variables with their indicators. The coefficient values meet the requirements, with the best loading model values meeting the standard (> 0.5). This indicates that the model has good validity and reliability. Validity is determined based on the loading factor value being greater than 0.5. If the value is greater than 0.5, the indicator is considered valid. However, if the value is less than 0.5, the indicator should be discarded as it is not suitable for measuring the variable.

3.1   Hypothesis Testing

Once the model has been tested, hypothesis testing can be performed. The basis for making decisions in hypothesis testing is to compare the p-value with the level of significance of 5% (alpha = 0.05). If the p-value is less than alpha, the null hypothesis (H0) is rejected, whereas if the p-value is greater than alpha, the null hypothesis (H0) is accepted. The direct hypothesis testing in this study is to examine the effect of job rotation on employee performance, while the indirect hypothesis testing in this study is to examine the effect of job rotation on employee performance through the mediation of organizational commitment and the effect of job rotation on employee performance through the mediation of work-life balance. The testing process utilizes the Structural Equation Modeling (SEM) method, with the support of the AMOS software and Sobel Test.

Table 2. Direct Effect Result

Table 3. Indirect Effect Result

3.2  The Effect of Job Rotation on Employee Performance The first hypothesis examines whether job rotation has a positive and significant impact on employee performance. The p-value is 0.03, demonstrating that the results are significant since the probability is less than the alpha level (0.05). Therefore, the first hypothesis (H1) is supported, indicating acceptance of this hypothesis.

3.3  The Effect of Job Rotation on Employee Performance Through Organizational Commitment

The second hypothesis tests whether organizational commitment mediates the effect of job rotation on employee performance. The t-value obtained using the Sobel test is 1.083, which is smaller than the critical t-value of 1.645, thus the initial hypothesis is rejected. This result indicates that the organizational commitment variable does not mediate the effect of the job rotation variable on performance, thus the second hypothesis (H2) is not supported, indicating not acceptance of this hypothesis.

3.4  The Effect of Job Rotation on Employee Performance Through Work-Life Balance

The third hypothesis tests whether work-life balance mediates the effect of job rotation on employee performance. Based on the t-value from the Sobel test, the calculated t- value is 1.595, which is smaller than the critical t-value of 1.645, thus the initial hypothesis is rejected. This result indicates that the Work-Life Balance variable does not mediate the effect of the job rotation variable on performance, thus the third hypothesis (H3) is notsupported, indicating not acceptance of this hypothesis.

IV.     DISCUSSION

The Effect of Job Rotation on Employee Performance The results of data analysis show that job rotation has a positive and significant effect on employee performance, so H1 is accepted. These results are in line with the hypothesis stating that there is a positive and significant effects between job rotation and employee performance. The p-value is 0.03, demonstrating that the results are significant since the probability is less than the alpha level (0.05). This research is also supported by studies conducted by previous research investigating the impact of job rotation on employee performance (Fernando and Dissanayake, 2019). Their research results indicate a positive relationship between jobrotation and employee performance. Proper job rotation procedures can enhance communication among employees, provide insights, and motivate employees working in thebanking sector to improve their performance.

The Effect of Job Rotation on Employee Performance Through Organizational Commitment.

The results of data analysis show that organizational commitment variable cannot mediate the effect of job rotation variable on employee performance, so H2 is not accepted. The t-value obtained using the Sobel test is 1.083, which is smaller than the critical t-value of 1.645, resulting in the rejection of the hypothesis. The Sobel test results show that the organizational commitment variable does not mediatethe effect of job rotation on employee performance. Thus, the relationship between job rotation and employee performance is not influenced by organizational commitment. Previous research conducted by Radita and Netra demonstrated that job rotation has a positive and significant effect on organizational commitment among employees (Radita and Netra, 2017) but did not examine employee performance.

The Effect of Job Rotation on Employee Performance Through Work-Life Balance

The results of data analysis show that work-life balance variable cannot mediate the effect of job rotation variable on employee performance, so H3 is not accepted. These results t-value from the Sobel test, the calculated t-value is 1.595, which is smaller than the critical t-value of 1.645, resulting in the rejection of the hypothesis. The Sobel test results show that the work-life balance variable does not mediate the effect of job rotation on employeeperformance. Thus, the relationship between job rotation andemployee performance is not influenced by work-life balance. Several previous research have shown the impact of work-life balance on employee performance. Bataineh’s research states that work- life balance has a positive and significant effect on employee performance. Employees who have a healthy work-life balance will certainly be able to perform their tasks more effectively and efficiently (Bataineh, 2019). Similar research conducted by Soomro et al. also showed that work-life balance has a positive and significant impact on employee performance (Soomro et al., 2018).

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