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isbn 978 602 6697 30 1 situational leadership and competency towardwork motivation and its impact on employee performance of service company working atwell intervention division of pertamina hulu mahakam 1 ...

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               ISBN : 978-602-6697-30-1 
                
                 SITUATIONAL LEADERSHIP AND COMPETENCY TOWARDWORK 
                MOTIVATION AND ITS IMPACT ON EMPLOYEE PERFORMANCE OF 
               SERVICE COMPANY WORKING ATWELL INTERVENTION DIVISION OF 
                                 PERTAMINA HULU MAHAKAM 
                                                 
                
                      1)                 2)        3)        4)         5)
               Titi Laras   ,Nindyo Cahyo Kresnanto  ,Rini Raharti  ,Nurwiyanta  ,Adi Surahman  ,Kholifah 
                                                  6) 
                                            Fil Ardhi
                
                      1) Universitas Janabadra Yogyakarta, Indonesia / Email:titilaras07@gmail.com 
                   2) Universitas Janabadra Yogyakarta, Indonesia / email: nindyo_ck@staff.janabadra.ac.id 
                      3) Universitas Janabadra Yogyakarta, Indonesia / email:riniraharti@gmail.com 
                      4) Universitas Janabadra Yogyakarta, Indonesia / email:nurwiyanta@gmail.com 
                    5) Universitas Janabadra Yogykarta, Indonesia / email:adisurahman5758@gmail.com 
                   6)Universitas Muhammadiyah Yogyakarta, Indonesia / Email:kholifahfilardhi@gmail.com 
                                                 
               ABSTRACT : The aims of this research to know and obtain empirical evidence of: (1) simultaneous 
               influence  between situational  leadership and  competence on work motivation; (2) partial influence 
               between the situational leadership and competence on employee motivation; (3) simultaneous influence 
               between  situational  leadership  and  competence  on  the  performance;  (4)  Partial  influence  between 
               situational leadership and competence on the performance; (5) the effect of work motivation on the 
               performance  of  employees;  (6)  situational  leadership,  competence  and  motivation  influence  to  the 
               performance of employees.The data source used is primary data and secondary data. Type of sampling 
               technique  using  probability  sampling  with  proportional  stratified  random  sampling  method.  The 
               samplesare  210  employees.  The  results:  (1).  Situational  Leadership  and  Competence  Leadership 
               variables simultaneously affect the work motivation; (2). Situational Leadership has no effect partially 
               on  work  motivation;  (3).  The  competence  partially  affects  the  employee's  work  motivation;  (4). 
               Situational Leadership and Competence simultaneously have a positive effect on the performance of 
               employees; (5). Situational leadership partially has no effect on the performance of employees; (6). 
               Competence  partially  affects  the  Performance  of  employees;  (7).  Work  motivation  affects  the 
               performance  of  employees.  (8).  Situational  Leadership,  Competence,  and  Work  Motivation 
               simultaneously affect the Performance of Employees. 
                
               Keyword: Situational Leadership, Competence, Work Motivation, Employee Performance 
                
                
                                             INTRODUCTION 
               In the draft of State Budget (RAPBN) 2018, the government is targeting oil lifting of 800 thousand 
               barrels  per day  (bpd). This  figure  is  below  the  2017  target  of  815  bpd and  820  bpd  in  2016.  For 
               medium-term targets, oil lifting even reaches only 651-802 bpd by 2021. While gas lifting in 2018 is 
               set at 1.2 barrels of oil equivalent per day (boepd) or up from the previous year at 1.15 boepd. The 
               domestic lifting gas target has also declined since 2015. This condition is a challenge especially  for 
               companies engaged in Upstream Oil and Gas (Kemenkeu RI, 2017). Referring to business as usual 
               performance,  as  stated  in  the  Work  Program  and  Budget  (WP  &  B)  proposed  by  a  number  of 
               Contractor Cooperation Contract (KKS), the level of production capability in 2017 is still below the 
               target of only 808 thousand bpd oil and at 1.15 million boepd gas (SKK Migas, 2017). The high rate of 
               oil and gas achievement above the average capacity level of PSC Contractors becomes a mild task for 
               all elements that play a role in the Upstream Oil and Gas Industry. 
                
                
                
                
                
                
                
                
                                      
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                                                                                                                       ISBN : 978-602-6697-30-1 
                                                                                      Table 1 
                                          TARGET ACHIEVEMENT OF THE NUMBER OF PRODUCTION IN EACH 
                                                                     KKS CONTRACTOR, YEAR 2017 
                                     No.                           KKS Contractor                                          Target Achievment 
                                                                                                                           (in thousand of bph) 
                                      1.      PT Chevron Pacific Indonesia                                                           228,9 
                                      2.      Mobil Cepu Ltd                                                                          200 
                                      3.      PT Pertamina EP                                                                        84,2 
                                      4.      TOTAL E&P Indonesie                                                                    52,8 
                                      5.      PHE ONWJ                                                                               36,5 
                                      6.      CNOOC SES Ltd                                                                          31,3 
                                      7.      Chevron Indonesia Company                                                              17,7 
                                      8.      ConocoPhilips                                                                          17,4 
                                     No.                           KKS Contractor                                          Target Achievment 
                                                                                                                           (in thousand of bph) 
                                      9.      PC Ketapang Ltd                                                                        15,6 
                                      10.     Petrochina International Jabung Ltd                                                    14,4 
                                      11.     Kontraktor KKS Lain                                                                    115,9 
                                                                          Source: SKK MIGAS 2017 
                             
                                  Pertamina's full commitment to sustainability of production in the working area of Mahakam is 
                            also evidenced by the budget disbursed in 2018 for exploration, development and production activities. 
                            Based on data from SKK Migas, as of November 2017, the Working Area of Mahakam produces oil 
                            and condensate of 52 thousand barrels of oil per day and 1.360 million cubic feet of natural gas per day. 
                            The potential in the Mahakam block is still promising. The proven reserves as of January 1, 2016 are 
                            4.9 TCF of gas, 57 million barrels of oil and 45 million barrels of condensate. The management of 
                            Mahakam Working Area by Pertamina makes Pertamina as a contributor of more than 30% of national 
                            oil  and  gas  production  in  2018  (Pertamina  News-Room,  2018).  The  2018  Working  Program  and 
                            Budget  Agreement  (SKP)  by  SKK  Migas  targets  Pertamina  Hulu  Mahakam  production  of  42.01 
                            thousand barrels of oil per day and 916 mmscf of gas per day. This figure is achieved by drilling 
                            development wells of 69 wells, 132 workover wells, 5.623 repair wells and POFD 5 oil and gas fields 
                            in  Mahakam  Working  Area  (Pertamina  News-Room,  2018).  Historically,  the  working  contract  of 
                            Mahakam Working Area was first signed by Total E & P Indonesie and Inpex on October 6, 1966 for a 
                            period of 30 years. Total E & P Indonesie gained participation from Inpex by the end of 1970 and 
                            determined as an operator. In 1991, Total E & P Indonesie obtained a 20-year contract extension until 
                            March 30, 2017. The Mahakam's contract has an additional period of 9 months until December 31, 
                            2017. This increase is due to the LNG sales contract extended until December 31, 2017. In journey, this 
                            French company also listed as the largest gas producer in Indonesia and supplying about 60% of the 
                            Bontang LNG plant needs. The oil and gas production of the Mahakam block started from the Bekapai 
                            field in 1974. Since the success of the first exploration, oil and gas were successively found in seven 
                            other fields namely Handil (1974), Tambora (1974), Tunu (1977), Peciko (1983), Sisi (1986), Nubi 
                            (1992), and South Mahakam (1996) located in Kutai Kartanegara District, East Kalimantan (Energia, 
                            2018). The big challenge must be faced by Pertamina Hulu Mahakam.  
                                  Mahakam block is a mature field that must be developed in a special way, because this block has 
                            different reservoir characteristics than most of the field. Appropriate technology should continue to be 
                            developed by searching and learning different things as well as innovating for production reliability. 
                            The technology and solid team coordination is an answer to help maintain and increase oil and gas 
                            production in the Mahakam Block. Another challenge in today's digital era, we must accept the fact that 
                            the conditions around us are increasingly uncertain. One of the challenges that must be faced in the 
                            business  world  is  VUCA  world.  VUCA  which  stands  for  Volatility,  Uncertainty,  Complexity  and 
                            Ambiguity is a picture of the situation in the business world today. Volatility is a very rapid dynamics 
                            of change, Uncertainly defined as a lack of predictability of issues and events that occur, Complexity is 
                            the disruption and chaos that surrounds every organization. Improving the quality of Human Resources 
                            within the Company of Pertamina Hulu Mahakam is not only done to employees of Pertamina Hulu 
                            Mahakam  company  itself,  but  also  to  employees  of  the  Contractor  company  (Service  Company) 
                            working  for  Pertamina  Hulu  Mahakam  in  accordance  with  the  standards  set  by  the  company  . 
                            Contracting companies (service companies) are frontliners as job executors, especially under the Well 
                                                                                                                                                      95 
                              ISBN : 978-602-6697-30-1 
                               
                              Division of Intervention. The Company Contractor (Service Company) is still active in the year 2017 as 
                              follows: 
                                                  
                               
                               
                                                                                            Table1. 
                                              CONTRACTOR COMPANY(SERVICE COMPANY)UNDER 
                                                                  WELL INTERVENTION DIVISION 
                           No.            Company Name                                 Unit                          Employee number in PHM area 
                          1         Elnusa                                     -     Slickline                                           150 
                                                                               -     Snubbing 
                                                                               -     Coil Tubing 
                                                                               -     Well Testing 
                          2.        Nesitor                                    -     Slickline                                           125 
                          3.        Schlumberger                               -     Slickline                                            95 
                                                                               -     Electricline 
                          4.        Adimas                                     -     Well Testing                                         45 
                          5.        Baker                                      -     Electricline                                         22 
                                      Jumlah                                                                                             437 
                              Source: Technical Admin TTH, 2017. 
                                          Competence is a dimension of behavior that exists behind competent performance that shows 
                              how  people  behave  when  they  perform  their  role  well.  Chompetence  is  a  basic  characteristic  of 
                              personnel who become the determinants of success or failure to do a job or in certain situations. On the 
                              other  hand,  the  company's  demands  on  employees  must  also  be  balanced  with  the  increased 
                              competence required. With situational leadership and adequate competence improvement to employees 
                              are  expected  to  provide  motivation  and  improve  the  performance  of  each  employee  increased. 
                              Motivation that exists when a person will realize a behavior directed towards the goal of achieving the 
                              goal of satisfaction. So motivation is not something that can be observed, but it is something that can be 
                              inferred because of a visible behavior. 
                                          Several  previous  studies  that  examine  the  factors  that  affect  employee  motivation  and 
                              employee  performance  have  been  done.  Leadership  and  competence  are  found  to  be  related  to 
                              employee work motivation. The better the leadership factor, the higher the employee's performance can 
                              be  expected.  The  higher  the  employee  competency,  the  higher  the  employee's  performance 
                              (Widyatmini and Hakim, 2008). Research conducted by Primanda and Azzuhri (2014), showed that 
                              work  motivation  significantly  influence  to  employee  performance.  While  from  research  Agustina 
                              (2010), From result of analysis which have been done, intrinsic motivation and extrinsic motivation 
                              have real effect to employee performance. Based on the research background as described previously, 
                              the problem in this research can be formulated as follows: 
                              a.  How is the simultaneous influence between situational leadership and competence on employee 
                                  motivation of the Contractor (Service Company) working under the Well Intervention division of 
                                  Pertamina Hulu Mahakam? 
                              b.  What  is  the  partial  influence  between  situational  leadership  and  competence  on  employee 
                                  motivation of the Contractor (Service Company) working under the Well Intervention division of 
                                  Pertamina Hulu Mahakam? 
                              c.  How  is  the  simultaneous  influence  between  situational  leadership  and  competence  on  the 
                                  performance of Contractor employees (Service Company) working under the Well Intervention 
                                  division of Pertamina Hulu Mahakam? 
                              d.  What is the partial influence between situational leadership and competence on the performance of 
                                  Contractor  employees  (Service  Company)  working  under  the  Well  Intervention  division  of 
                                  Pertamina Hulu Mahakam? 
                              e.  What is the effect of working motivation on the performance of Contractor's employees (Service 
                                  Company) working under the Well Intervention division of Pertamina Hulu Mahakam? 
                              f.  What is the influence of situational leadership, competence and motivation on the performance of 
                                  Contractor  employees  (Service  Company)  working  under  the  Well  Intervention  division  of 
                                  Pertamina Hulu Mahakam? 
                                                                         Literature Review And Hypothesis 
                              96 
                                                                                          ISBN : 978-602-6697-30-1 
                      
                                                        Figure:1.The Grand Theory                           
                     The influence of Situational Leadership toward Working Motivation  
                          Situational leadership is a leadership activity in its efforts to influence, encourage, guide, direct 
                     and mobilize employees by approaching the particular situation and maturity level of subordinates who 
                     led. The situational leadership theory developed by Robert House called The Pathgoal theory in the 
                     Sujak  quote  (1990:  17)  suggests  the  "hope"  theory  in  motivation  which  says  that  people  will  be 
                     motivated by two expectations of the ability to do a task and a sense of belief that if the employee can 
                     do  a  good  job  of  obtaining  a  valuable  gift  for  himself.  Situational  leadership  uses  the  same  two 
                     dimensions of leadership as Fiedler recognizes: the behavior of tasks and relationships. But Hersey and 
                     Blanchard (1998: 13) go so far as to assume each dimension as high or low and then combine them into 
                     four specific leader behaviors: telling, selling, participating, delegating ). So leadership in the Hersey 
                     and Blanchard theories puts forward the situational leadership style of leaders who have adapted their 
                     leadership style to the needs of the situation. According to previous research Syamsuddin (2016) and 
                     Sinollah (2014), both studies show that situational leadership styles are instructional, consultative and 
                     delegates have a positive and significant influence on employee work motivation. From the description 
                     above  it  can  be  concluded  that  Situational  Leadership  will  affect  the  growth  of  employee  work 
                     motivation. Employees need motivations that come from outside of himself which of course very need 
                     to  be  considered by a leader. The leader of a company in motivating employees should be able to 
                     provide equipment, create a good working environment, provide employee opportunities to develop a 
                     career, enabling employees to improve their morale, which is the driving force to motivate employees 
                     in directing all their potential. 
                           
                     The influence of Competency toward Working Motivation 
                             Competence is a basic characteristic of the individual casually associated with the motivation 
                     to change or get a better achievement. Moving from this concept then it must be distinguished between 
                     competent  and  competency.  Competent refers  to  one's  work  field  while  competency  refers  to  the 
                     underlying behavioral dimension of competent performance. The result of Ngatemin and Arumwanti's 
                     research on the Influence of Competence on the motivation of hotel worker in north sumatera shows 
                     that the competence has significant effect on employee's motivation. Research by Rahman et al (2014) 
                     also  showed  that  Competence  significantly  influence  the  performance  of  factory  employees  in 
                     PT.Jember Indonesia. Based on the results of these studies indicate that the competence of employees 
                     is a manifestation of all forms of ability possessed. Employees will be motivated if the competencies 
                     held in accordance with what is expected by the company. These competencies will have an impact on 
                     the  level  of  confidence  in  work.  Employees  with high  competence  will  tend to  show  their ability 
                     through achievement in the company. 
                                                                                                                  97 
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...Isbn situational leadership and competency towardwork motivation its impact on employee performance of service company working atwell intervention division pertamina hulu mahakam titi laras nindyo cahyo kresnanto rini raharti nurwiyanta adi surahman kholifah fil ardhi universitas janabadra yogyakarta indonesia email titilaras gmail com ck staff ac id riniraharti yogykarta adisurahman muhammadiyah kholifahfilardhi abstract the aims this research to know obtain empirical evidence simultaneous influence between competence work partial effect employees data source used is primary secondary type sampling technique using probability with proportional stratified random method samplesare results variables simultaneously affect has no partially affects s have a positive keyword introduction in draft state budget rapbn government targeting oil lifting thousand barrels per day bpd figure below target for medium term targets even reaches only by while gas set at equivalent boepd or up from previou...

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