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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. 94 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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