Effect of welfare programs to the job performance in the Office of Bank Indonesia Medan By R Pandji Cepi Lesmana

Abstract

Nunggu fix

INTRODUCTION

Employee is an asset whose performance is necessary to increase the company progress. Without a good job performance from all employees, the success of the institution in achieving this goal will be difficult to achieve. It can be say that success of company progress is influence by job performance of employee. Among the most commonly accepted theories of job performance comes from the work of John P. Campbell and colleagues. Coming from a psychological perspective, Campbell describes job performance as an individual level variable. That is, performance is something a single person does. To attract, motivate and retain what employee does to be a good job performance, organization need to know what employee wants from employment relationship. A good job performance of employee is the desired state in their working life so the good company has to treat their employee as investment, not as cots. The good company

also cannot treat their employee as machine that can be controlled and regulated fully in support of the achievement of organizational goals. The good company should maintains their employee well. Many ways that company can do to maintain their employee, one of which is directly related to the employee is the welfare program. Employee welfare is a major concern of employees. According to Nair, S.Shiny in articlebase.com, Employee welfare defines as "efforts to make life worth living for workmen". These efforts have their origin either in some statute formed by the state or in some local custom or in collective agreement or in the employer's own initiative. This problem that becomes a grip for researcher to replicate the study on the relationship job performance with welfare programs in the Office of Bank Indonesia Medan.

LITERATURE STUDY

To support this research, the author conducted a study of literature about the objects will be researched, such as welfare programs and job performance. These objects will be explored in more detail to be used as preference for this research. The first explanation of this literature is about employee welfare program that will include of definition, purpose, principles and types of welfare programs. Employee welfare is explained by Jared Lewis in Demand Media , a major concern of employers. Prior to the labor union movements of the early 20th century, employers cared little about employee welfare and instead thought of employee labor as something to be bought at the lowest price possible. In today's world, employers must be more careful to watch out for employee welfare. In short, employee welfare involves watching out for the good of all employees. Employers should seek several different objectives in promoting employee welfare.[1] Almost same with opinion above, according to the Harvard Business School Library, employee welfare programs can be traced to the beginning of the 20th century. Reformers, labor unions, journalists and others brought to national attention to poor working conditions for workers in factories and other industries. Since that time, employee welfare programs have continued to evolve, providing more benefits for American workers. [2] Moreover, Nair in articlebase.com give short definition of Employee welfare as "efforts to make life worth living for workmen". These efforts have their origin either in some statute formed by the state or in some local custom or in collective agreement or in the employer's own initiative. Besides giving a brief explanation of the welfare programs definition, Nair also gives some purpose of welfare program, such as; To give expression to philanthropic and paternalistic feelings, to win over employee's loyalty and increase their morale, to combat trade unionism and socialist ideas, to build up stable labour force, to reduce labour turnover and absenteeism, to develop efficiency and productivity among workers, to save oneself from heavy taxes on surplus profits, to earn goodwill and enhance public image, to reduce the threat of further government intervention, and to make recruitment more effective because these benefits add to job appeal.[3] So from explanation above, Employee welfare is a major concern of employers that be traced to the beginning of the 20th century. Moreover employee welfare can be defined as program of the company that focuses to make better life for employee.

In order to achieve these objectives or purpose of welfare program, a program should be done using existing principles as explained by Nair in articlebase.com. He explains the principles that be followed in setting up employee welfare service. The first is that the service should satisfy real needs of the workers. This means that the manager must first determine what the employee's real needs are with the active participation of workers. The second is that the service should be handled by cafeteria approach. Due to the difference in Sex, age, marital status, number of children, type of job and the income level of employees there are large differences in their choice of a particular benefit. This is known as the cafeteria approach. Such an approach individualises the benefit system though it may be difficult to operate and administer. The third is that the employer should not assume a benevolent posture. The last is that the cost of the service should be calculate and its financing established on a sound basis. And for addition, there should be periodical assessment or evaluation of the service and necessary timely on the basis of feedback. [4] Therefore by following these principles, the company will easier to plan the welfare program that needed and appropriate with Principe of the company so this program will produce effective result. [3] Not only following these principles, but the company have to determine what kind of welfare program that needed and can be done by company. There are several types of welfare programs described by Nair, including Safety services, health services, and counseling services. Safety Services is most important thing for employee, especially they who work in field. The objective of this service is about prevention of accidents. The costs of accidents are enormous in suffering to the injured, in reduction or loss of earnings, in disabilities and incapacities which afflict those involved and in compensation, insurance and legal costs, in lost time, filling in reports and attending to enquiries, and in spoilage of materials, equipment and tools to management. Nair explain that there are several components in safety service that can apply in combination for effective result, such as: Appointment of safety officer, Support by line management, Elimination of hazards, Safety training/education and publicity, and Safety inspection. After that, the company should be aware in health services for employee. The prevention of accident constitutes only on segment of the function of employee maintenance. Another equally important segment is the employee's general health, both physical and mental. There are two aspects of industrial health services Preventive Curative, the former

consists of pre-employment and periodic medical examination, removal or reduction of health hazards to the maximum extent possible, Surveillance over certain classes of workers such as women, young persons and persons exposed to special risks. And the last according Nair is Counseling Services because an employee very often comes across problems which have emotional content. For example, he may be nearing retirement and feeling insecure or he may be getting promotion and feeling hesitant to shoulder increased responsibility or he may be worried due to some family problem. [3] In addition, Bianca (eHow) also give other explanation about types of welfare program especially in U.S department, including benefit programs, health and safety, and employee assistance program. Benefit Programs for employees are regulated by the U.S. Department of Labor under the Employee Retirement Income Security Act of 1974. This law covers health, life and disability insurance, as well as retirement and benefit plans. Private employers must maintain standards of conduct, provide information to their employees and report their programs to the federal government. Another broad area of employee welfare programs that is also regulated by the U.S. Department of Labor is health and safety. Under federal laws such as the Occupational Safety and Health Act, employees are entitled to a safe workplace. Health and safety advisers suggest policies and procedures to protect workers, medical advisers provide preventive and clinical care, and safety committees offer help with risk assessments and safety audits. Besides two programs above, Employee assistance program is also examples of employee welfare programs. An employee can go through a confidential referral service to get help with personal problems that may affect work performance. Examples of services include counseling for legal problems, substance abuse, family problems, and stress. Some employees also require assistance because they are exposed to stressful situations in the workplace grief . [2] From both of explanation above, author can conclude that welfare program have several types of focusing that can be done by the company, such as: benefits programs, health and safety services, counseling or employee assistance. The company can do all of program to give more benefit for employee if the company have high capability to do it. But, if the company just have low capability in budget or facilities, company can chose one of them that most efficient and effective to be done. Beside employee welfare program, this research also needs explanation about job performance of employee. It will include about the definition and the criteria of job performance.

Job performance, according Carl Hose, is the way employees perform their work. An employee's performance is determined during job performance reviews, with an employer taking into account factors such as leadership skills, time management, organizational skills and productivity to analyze each employee on an individual basis. Job performance reviews are often done yearly and can determine raise eligibility, whether an employee is right for promotion or even if an employee should be fired. [4] Therefore, to value the job performance of employee, the company needs several criteria that also called as Performance criteria. Like explanation by Marcia, performance criteria are defined as standards for employee behavior at work. This criteria contains much more than how an employee does the work. Employees are rated on how well they do their jobs compared with a set of standards determined by the employer. Marcia also gives several criteria to value job performance in some group, such as: job description, establishing criteria, task vs. behavior, and performance Appraisal. Job descriptions are the main part of the performance definition. What the employee is required to do dictates the way the work must be performed. Most of the time, quality and quantity are two measurements involved. And the next part is establishing the criteria. Its mean that just how much work an employee must do directly affects how well it is done. Employers demand high productivity and high quality. If employees have too much work, it can affect how well they perform. If they do not have enough work to do, the business suffers. In addition to the various tasks that make up the work, there is also the behavior of the employee. Many times productivity is affected due to excessive absenteeism, poor attitude, lack of teamwork, and numerous errors. And the last is Performance appraisal programs that are used in many companies. Employees are provided job requirements, on-the-job training, performance goals, and company expectations. Employees are rated on the criteria established and if poor evaluations are not improved, the employee can actually be terminated. Many companies use the performance appraisals for raises, promotions, and awards. [5 Moreover, Kyra also adds more explanation that the criteria employers used to evaluate job performance according to occupation, position, department and organizational goals, past performance and performance standards. The type of performance appraisal might also dictate what criteria managers use when they evaluate an employee's performance. Basic criteria for evaluating job performance include performance standards, skills and

competency, goal-setting and professional development and overall adherence to the company's philosophical principles concerning business and work ethic.[6] After knowing about welfare program and job performance, researcher can be known the correlation of both from the result of this research that will be explain in next chapter.

RESEARCH METHODE This research population is employees of the Office of Bank Indonesia Medan with the sample a number of 33 people and withdrawal methods are proportionate stratified sample (SLTA 8 people, 8 people DIII, S 1 and S2 9 people 8 people). Data collection was done by distributing questionnaires with the freely variable in this study is Employee welfare Program and bound variable is job performance. In addition it is also conducted observations and literature to support this research. To test the hypothesis and analyze research data is the relationship (associative) then can be analyzed using correlation method (Zaenal Mustafa, 1995:121). Furthermore, to see the relationship between the variables X (welfare program) with the variable Y (job performance) used interval correlation coefficient table. Coefficient of Determination was done to see how much the independent variable can explain the dependent variable. To see the significance between variables welfare programs and job performance is used the t test. To determine the coefficient of the independent variable that employee welfare programs on Job performance (dependent variable) in the Office of Bank Indonesia Medan Branch used regression equations. Overall the data processing used excel and SPSS software. [7]

DATA ANALYSIS AND DISCUSSION From the questionnaire of this research were obtained Pearson correlation between Welfare Program and job performance is at 0.5025, the figure in the position is a positive correlation. This shows the correlation between employee welfare programs with job performance is positive moderate. This relationship suggests if welfare program is added, the job performance will increase too. This is reinforced by the significant correlation coefficient of 0.001, and then the probability is below 0.05 so the correlation between welfare programs with work performance is significant. The coefficient of determination obtained at 0.2525, its meaning that the employee benefits program can explain labor productivity amounted to 25.25%, while the remaining is explained by other variables. This shows that the determinant factor job performance is not

only determined by the welfare program but there are other factors whose role is greater than welfare itself. However, these factors are outside the study. Standard error of estimate is obtained by 0.05483. If the observed standard deviation of last job performance is 0.062421, which is greater than the standard error of the estimate is only 0.05483. Therefore, smaller than the standard deviation of job performance, the regression model is better to act as a predictor of job performance on average job performance itself. Regression equation from statistical calculations using Microsoft Excel unknown Y = 1.7955 + 0.38948 X. This explains the constant 1.7955 by stating that if there is no employee welfare programs, the work performance is 1.7955. Regression coefficient of 1.7955 states that any additional activity or employee welfare program budget will increase by 1.7955. Likewise, if done otherwise when events or reduced budgets of welfare program so that job performance will decline. Direction of the relationship is positive in the direction of welfare programs, increasing welfare costs it will result in increased job performance, in turn lowering the welfare budget will reduce job performance. T test was used to test the hypothesis by comparing the t calculated and t tables. And t count equal to 3.236144519. By using the table then with a sample of 33 of the obtained degrees of freedom (df) equal to 33-2 = 31, then known t table by 2.070. From the comparison above, the t-count is greater than t table (3.236144519> 2.070, thus the alternative hypothesis is accepted. Means welfare programs conducted by the Bank Indonesia Medan has a significant relationship with job performance. [7]

CONCLUSION From data analysis and discussion above, author can conclude several result, such as : The coefficient of Correlation is 0.5025 , this means that the relationship between employee wellness programs with labor productivity calculated correlation coefficients are in the category of being positive and significant. The welfare program determines the productivity amount of 0.2525, this means that about 25.25% of labor productivity can be explained by the variable employee benefits. While the rest 0.7475% is explained by other variables outside of the study. Regression equations of statistical calculations using Excel Software is Y = 1.7955 + 0.38948 X. This explains the constant 1.7955 by stating that if there is no welfare program then labor productivity 1.7955. Regression coefficient of 0.38948 stating that

any additional costs or welfare program budget will increase work productivity by 0.38948. The results of t-count equal to 3.236, while the t-table 2.070. Thus t-count is greater than t-table (3.236> 2.070), then the alternative hypothesis accepted meaning welfare programs have a significant impact on labor productivity in the local Bank Indonesia Medan. [7]

BIBLIOGRAPHY
[1]

Lewis, Jared. Objectives of Employee Welfare.chron.2013. Hearst Communications, Inc. Retrieved January 22 2013. <http://smallbusiness.chron.com/objectivesemployee-welfare-17425.html> Bianca , Audra. Employee Welfare Programs.eHow. 1999-2013 Demand Media, Inc. Retrieved January 22 2013. <http://www.ehow.com/list_6746838_employeewelfare-programs.html>

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[3]

Nair , S.Shiny. Employee Welfare. Articlebase. 2005-2013. ArticlesBase.com. Retrieved January 22 2013.<http://www.articlesbase.com/human-resourcesarticles/employee-welfare-999627.html> Hose, Carl. What is the Definition of Job Performance?.eHow. 1999-2013 Demand Media, Inc.. Retrieved January 22 2013.< http://www.ehow.com/info_7856570_definition-job-performance.html>

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Marcia Moore, M.S.S.W. Employee Performance Definition.eHow. 1999-2013 Demand Media, Inc. Retrieved January 22 2013. <http://www.ehow.com/facts_7218608_employee-performance-definition.html> Kyra Sheahan. Determinants of Employee Performance.eHow. 1999-2013 Demand Media, Inc. Retrieved January 22 2013. http://www.ehow.com/facts_6814191_determinants-employee-performance.html Eben E.P and Renta H.R.S.2012. Keterkaitan Program Kesejahteraan Karyawan Dengan Produktivitas Kerja Di Kantor Bank Indonesia Medan (Research code VISI (2012) 20 (1) 870-880).

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