p–ISSN: 2723 - 6609 e-ISSN: 2745-5254
Vol. 5, No. 5 Mei 2024 http://jist.publikasiindonesia.id/
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2391
Environmental Impact and Job Satisfaction on Employee
Performance with Intervening Variables Work Motivation
(Case Study: Refinery-Biodiesel Plant Division of PT. X)
Boy Andika Sinaga
Universitas Terbuka, Indonesia
Email: [email protected]
*Correspondence
ABSTRACT
Keywords: Millennial
Generation, Work
Satisfaction, Employee’s
Performance, Work
Environment, Work
Motivation.
This research is intended to find out and analyse the impact
of work environment and work satisfaction on employee
performance, which is mediated by work motivation. The
research was done quantitatively by using the survey method
with data analysis technique using SEM PLS. The
questionnaire was a data collection instrument and was
spread online through Google Forms. It had a sample quota
of 83 respondents from millennial-generation employees
from a refinery-biodiesel plant in PT. X. The independent
variable in this research is work environment (X1) and Job
satisfaction (X2); the dependent variable is employee
performance (Y) and, with mediating variable, namely work
motivation (Z). The result from this research is that work
environment (X1) and work satisfaction (X2) do not affect
employee performance (Y) because the t-statistic values of
1,237 and 0,068 are successively lesser than 1,96 values with
a significance of 0,05. With the mediation available in the
form of work motivation (Y), it can be obtained data in
which work environment (X1) and work satisfaction (X2)
positively affect and signification to employee performance
(Y) with t-statistic values by 2,157 and 3,872 successively
with the significance lesser than 0,05. Besides that, work
motivation (Y) also positively affects and is significant
toward employee performance with a t-statistic value of
4,490 and a significance of 0,05. Further research is expected
to research other variables that are able to support
employees’ increasing performance, such as organisational
commitment, work-life balance, and organisational culture.
Introduction
In recent years, it can be seen that the world has experienced an increase in
globalisation, one of which is the economy of many countries that are interrelated in
promoting foreign trade through the use of technological advances and connectivity
without obstacles (Carnevale & Hatak, 2020). With significant developments and
improvements both nationally and internationally, companies are increasingly
Boy Andika Sinaga
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2392
encouraging to recruit and retain talented workers (Collins, 2021). Therefore, the
development of the industry today requires many companies to make changes in various
aspects, and one of the essential aspects is human resources (HR). HR is considered a
foundation of the company, so it needs to be considered as well as possible.
Many companies depend on employees to achieve profits and competitive
advantages to be able to compete with competitors. The existence of employees who have
competence in the company will give a good indication of the efficiency of human
resource management, and that manage human resources. There are several scopes of
duties and human resource management, which include human resource (HR)
preparation, recruitment strategies, employee training, compensation development
management, efficiency, worker relations, providing health services and employee
satisfaction with services. Through these tasks, it is hoped that they will be able to
improve organisational efficiency, employee engagement and better work quality (Khan
& Abdullah, 2019).
One of the strategic steps taken by many companies today is to focus on developing
human resources, which will have many differences in characteristics in the future. The
percentage of the millennial generation in each company has increased, and this means
workers with long working periods will be replaced with millennials who are considered
more productive. According to De Meuse (2010), the projection of workers for each
generation group in 2030 is predicted by the boomers generation 8%, generation Xers
24%, millennials generation 44% and Generation Z as much as 24%. The development
of the number of each generation group every year turns into a challenge for companies
in determining the right strategy in HR management.
PT. X is a manufacturing company established in 2008 with a core business focus
on palm oil processing. PT. X has several divisions, including the Refinery and Biodiesel
Plant as a whole, which is a group of millennial workers. This division is in great demand
by millennial generation employees because of the work environment and job
satisfaction, which motivates them to work. This is seen through the low employee
turnover rate and good plant division performance. Data from a Deloitte survey (2023)
explains that as many as 62% of millennials say work is the core of millennial group
identity. The millennial generation group will consider a job more than a balance between
work and a better life.
Employee performance is the result of an employee's efforts to complete the duties
and obligations given based on ability, experience, honesty, and availability. Work
environment and work motivation are some of the factors that affect employee
performance. A good, effective and conducive work environment will encourage
employee performance improvement because employees feel comfortable, happy and
enthusiastic at work. The work environment is defined as everything around employees
that can have an impact on the way employees carry out tasks given by the organisation
and company (Alya et al., 2022).
In increasing employee motivation, one factor that can be used is job satisfaction.
Job satisfaction is the emotional orientation possessed by employees towards the work
Environmental Impact and Job Satisfaction on Employee Performance with Intervening
Variables Work Motivation (Case Study: Refinery-Biodiesel Plant Division of PT. X)
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2393
being done. Job satisfaction is also defined as a set of psychological, physiological and
interconnected environments that encourage employees to recognise that employees are
satisfied and happy with their work. The existence of dissatisfaction at work is influenced
by factors related to employee rights, unsafe working conditions, co-workers, and
superiors who are not cooperative and are not given opportunities in decision-making,
which impacts employees who will feel separated from the organisation (Raziq &
Maulabakhsh, 2015).
This research is essential to prepare companies to face challenges in managing
human resources that have different characteristics of worker groups from different
generations, especially the millennial generation. From the results of this study, it is
expected that companies can see the influence of the work environment and employee job
satisfaction as factors that will motivate employees to work optimally. Therefore,
research will be conducted on environmental impact and job satisfaction with work
motivation as an intervening variable on the performance of millennial generation
employees at PT. X (Refinery-Biodiesel Plant Division).
(Wijanarko & Tjahjaningsih, 2022) define organisational behaviour as a science
that studies the impact that affects individuals, groups, and organisational structures on
existing behaviour in organisations, with the aim of applying science to improve effective
organisational performance. Basically, the overall behaviour of individuals has essential
consistency, which means that behaviour does not appear haphazardly and randomly but
somewhat predictable, which is further modified according to the differences and
uniqueness that each individual has. In organisational behaviour theory, it can be seen
that three main components influence organisational behaviour, namely inputs, processes
and outputs. In the input section, the initial setting of conditions and levels of the
processes will occur. This component is specified before the employment relationship
occurs. In the process section are actions and decisions carried out by each level, such as
individuals, groups, and organisations involved in it as a result of input, which culminate
in specific results. In the output section is the final result that is predicted, which is
influenced by several other variables, for example, employee performance. Humans are
considered individual and social creatures; this is interpreted as humans will try to display
certain behaviours for what happens that affect the interaction of individuals with one
another. Social behaviour is described as the result of events or events as responses that
colour the behaviour of each individual, and the development of behaviour patterns
obtained is also different.
The existence of human resources (HR) in a company is essential because HR is
the foundation of an organisation to achieve effective and efficient organisational goals
and performance. Performance improvement is considered a desired success parameter
by all organisations. Define employee performance as the achievement of meaningful
tasks and the efforts made by employees in carrying out their duties. The existence of
organisational resources and abundant valuable assets owned by the organisation will
have no meaning until employee performance is allocated correctly and appropriately to
achieve organisational goals and objectives by meeting targets on time (Bushiri, 2014).
Boy Andika Sinaga
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2394
Research Methods
This research was conducted using quantitative research methods, where data
dissemination was done using questionnaire survey methods. The population in this study
is employees in the Refinery-Biodiesel division of PT—x and sampling techniques using
non-probability sampling. The entire population sample will be used as respondents
(saturated sample) because all employees are included in the millennial generation. The
millennial generation is a generation born between 1982 and 2004 (Pyoria et al., 2017).
In this study, work environment (X1) and job satisfaction (X2) are independent variables,
work motivation (Z) is the intervening variable, and employee performance (Y) is the
dependent variable. The number of respondents in this study was 83 people with data
analysis methods using structural equation modelling (SEM), namely SmartPLS.
Figure 1
Research Thinking Framework
The formulation of the hypothesis in this study is as follows:
H1: The work environment directly affects employee performance
H2: Job satisfaction directly affects employee performance
H3: Work environment through the mediation of work motivation affects employee
performance
H4: Job satisfaction through mediating work motivation affects employee performance
H5: Work motivation affects employee performance
Results and Discussion
In this study, the samples used were all employees in the Refinery-Biodiesel Plant
division at PT. X because all employees are included in the millennial generation born
between 1982 and 2004. The number of respondents in this study was 83 people, with the
characteristics of respondents given as follows:
Environmental Impact and Job Satisfaction on Employee Performance with Intervening
Variables Work Motivation (Case Study: Refinery-Biodiesel Plant Division of PT. X)
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2395
Table 1
Characteristics Respondent
Information
Category
Number of
Respondents
Gender
Law Law
83
Woman
-
Age
19-22 Years
21
23-26 Years
38
27-30 Years
6
31-34 Years
4
35-38 Years
9
39-42 Years
5
Length of Work
< 2 Years
25
3-4 Years
19
4-5 Years
15
6-7 Years
3
8-9 Years
4
>10 Years
17
Recent Education
SMA/SMK
68
S1
15
Employee Status
PKWT
21
PKWTT
(Defenitif)
62
Position Level
Helper
Operator
44
Operator
20
Assistant
Supervisor
13
Supervisor
5
Assistant
Manager
1
Based on Table 1 above, it can be seen that all respondents are male, with a
dominant age range of 23 to 26 years, and there are as many as 38 respondents. The
majority of respondents in this study have a length of work under 2 years, with the most
graduating from high school / vocational school. The status of employees in this division
is dominated by trap employees (PKWTT), who have the most position levels as helper
operators.
Table 2
Validity Test
Research
Variables
Indicator
AVE (Average
Variance
Extracted)
Information
Work Environment
(X1)
LK1
0,622
Valid
LK2
Valid
LK3
Valid
LK4
Valid
LK5
Valid
LK6
Valid
Boy Andika Sinaga
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2396
LK7
Valid
LK8
Valid
LK9
Valid
LK10
Valid
Job Satisfaction
(X2)
KK1
0,692
Valid
KK2
Valid
KK3
Valid
KK4
Valid
KK5
Valid
KK6
Valid
Work Motivation
(With)
MT1
0,737
Valid
MT2
Valid
MT3
Valid
MT4
Valid
MT5
Valid
MT6
Valid
Employee
Performance
(AND)
KA1
0,710
Valid
KA2
Valid
KA3
Valid
KA4
Valid
KA5
Valid
KA6
Valid
KA7
Valid
KA8
Valid
In Table 2, the value of the outer loading of each instrument and the value of AVE
(Average Variance Extracted) on each variable can be seen, which shows the validity of
the instrument used in the study. The validity test is carried out to measure whether the
research instrument to be used is valid and knows what should be measured (Hartono &
Abdillah, 2014). In determining the validity of the research instrument, it is expected that
the value of each correlation (outer loading) is more than 0.7 to the measured
construction. However, in the early stages of developing a measurement scale, loading
values of 0.5 to 0.6 were considered sufficient and valid. In addition, in the instrument
validity test, it is expected that AVE must be greater than 0.50 (Ghefira, 2022). Then, it
can be said that the research instruments used as a whole are valid.
Table 3
Reliability Test
Research Variables
Cronbach’s
Alpha
Composite
Reliability
Information
Work Environment
(X1)
0,932
0,942
Reliable
Job Satisfaction (X2)
0,910
0,931
Reliable
Motives of Kerja (Z)
0,948
0,957
Reliable
Employee
Performance (Y)
0,917
0,936
Reliable
Reliability test is a test used to see if the instrument used is reliable or trustworthy;
the reliability of the instrument can be seen through the value of Cronbach's Alpha and
Environmental Impact and Job Satisfaction on Employee Performance with Intervening
Variables Work Motivation (Case Study: Refinery-Biodiesel Plant Division of PT. X)
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2397
Composite Reliability (CR) of each variable (Huang, Wang, Wu, & Wang, 2013).
Cronbach's Alpha value is acceptable if it has a minimum value of 0.6 or is recommended
to be> 0.7 (Van Griethuijsen et al., 2015). Cronbach's Alpha values are considered
excellent (0.93-0.94), strong (0.91-0.93), reliable (0.84-0.90), and relatively high (0.70-
0.77). In addition to using Cronbach's alpha, instrument reliability tests can be performed
by looking at the value of composite reliability. Composite reliability aims to test the
internal consistency and reliability of each construct (Haji-Othman & Yusuff, 2022). The
value of composite reliability ranges from 0 to 1, where the instrument can be said to be
reliable if it has a value between 0.60 and 0.70. In Table 3, it is found that all research
instruments are reliable (reliable); this is because the value of Cronbach's alpha and
composite reliability is in accordance with the standard value, which is above 0.70.
Therefore, the research instruments used as a whole can be said to be valid and reliable.
Table 4
Uji Model Fit
Model
Value
Information
SUMMER
0,077
Accepted
NFI
0,613
Accepted
In the study, a model fit test was also carried out, which aimed to find out whether
the model used was already in conformity with the data. The model can be accepted if it
meets the SRMR standard < 0.1 or can be said to be perfect if the SRMR < 0.08. In
addition, model compatibility can also be seen through the NFI value, where it is expected
that the value will range from 0 to 1 (Narimawati & Sarwono, 2022). Table 4 displays the
SRMR and NFI values where, in this study, the model used is fit or acceptable.
Figure 2 Structural Model Path Diagram
Table 5
Construct Crossvalidated Redundancy
Variable
Value Q2
Information
Motives of Kerja (Z)
0,595
Strong
Boy Andika Sinaga
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2398
Employee
Performance (Y)
0,511
Strong
Table 5 Displays the value of Q2, which is of predictive relevance, with the aim of
determining whether the structural model and the effect of the Q2 measure represent the
predictive relevance between exogenous constructs and specific endogenous constructs.
The generally accepted Q2 criteria are divided into several criteria, namely 0.02 (weak),
0.15 (moderate) and 0.35 (strong) (Fauziek & Yanuar, 2021). Figure 2 shows a path
diagram of a structural model where employee performance (Y) and work motivation (Z)
are endogenous constructs, and work environment (X1) and job satisfaction (X2) are
exogenous constructs. Therefore, work environment (X1) and job satisfaction (X2) have
strong predictive relevance to work motivation (Z) with Q2 values of 0.595 > 0.35. Then,
the work environment (X1) and job satisfaction (X2) have strong predictive relevance to
employee performance (Y) because the Q2 value is 0.511 > 0.35.
Table 6
Path Coefficient
Original
Sample
(O)
Sample
Mean
(M)
Standard
Deviation
(STDEV)
t
Statistic
P-
values
Information
H1: X1 →
Y
0,150
0,166
0,121
1,237
0,108
Insignificant
H2: X2 →
Y
-0,013
-0,033
0,192
0,068
0,473
Insignificant
H5: Z →
Y
0,749
0,757
0,167
4,490
0,000
Significant
Positive Effect
Table 7
Specific Indirect Effects
Original
Sample
(O)
Sample
Mean
(M)
Standar
d
Deviati
on
(STDE
V)
t
Statistic
P-
values
Information
H3: X1 →
Z → Y
0,101
0,093
0,047
2,157
0,016
Significant
Positive Effect
H4: X2 →
Z → Y
0,618
0,633
0,160
3,872
0,000
Significant
Positive Effect
H1: The work environment directly affects employee performance
In Table 6 above, the t-statistic value is 1.273, and the P-value is 0.108. This study
used a significance level of 0.05 with a t-value of 1.96. If t-statistics > t, then the
alternative hypothesis (Ha) is accepted, and the null hypothesis (Ho) is accepted and vice
versa. Furthermore, if the P-values < 0.05, then the relationship between variables can be
said to be significant; as for this study, H1 was rejected in t-statistic < t so that Ho could
be accepted; that is, the work environment did not affect employee performance. Terry
(2006) defines the work environment as a force that drives organisational performance
Environmental Impact and Job Satisfaction on Employee Performance with Intervening
Variables Work Motivation (Case Study: Refinery-Biodiesel Plant Division of PT. X)
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2399
directly or indirectly. The work environment includes facilities and workplaces, work
aids, sanitation, tranquillity, and relationships between everyone in the work
environment. Research conducted by (Sabilalo, Kalsum, Nur, & Makkulau, 2020)
obtained the same results as this study, where the work environment does not directly
affect employee performance. The work environment does not directly affect
performance due to physical environmental conditions, such as the characteristics of the
ambient air temperature that is quite hot, and non-physical environments, such as
relationships between employees in cooperation that are still not good.
H2: Job satisfaction directly affects employee performance
Job satisfaction is considered an emotional state related to employee attitudes
towards their work, work situations and cooperative relationships between leaders and
fellow employees who find a meeting point between the value of employee remuneration
and the value of remuneration provided by the company that is appropriate and desired
by employees. In Table 5 above, t-statistic 0.068 with P-value 0.473 is still carried by the
standard Nilai t, which is 1.96 with a significance of more than 0.05, so H2 is rejected.
Therefore, in this study, it was found that job satisfaction directly does not affect
employees; the results of this study are supported by research conducted by (Fauziek &
Yanuar, 2021), where research results were obtained that job satisfaction does not affect
employee performance. Poor co-worker relationships and a lack of appreciation for
superiors for the work done influenced job dissatisfaction in this study. To increase the
effect of job satisfaction on performance, mediating variables such as work motivation
are needed.
H3: Work environment through the mediation of work motivation affects employee
performance
Table 7 shows the significance of the relationship between the work environment
mediated by work motivation and employee performance where the t-statistic value is
greater than the t-value (1.96), which is 2.157, and the p-value of 0.016 is smaller than
the significance value of 0.05. Therefore, H3 is accepted where the work environment,
through the mediation of work motivation, has a positive and significant effect on
employee performance. Work motivation is considered a series of processes that
encourage and direct-controlled behaviour to achieve goals. The results of this study are
supported by research conducted by (Rosna, Niha, & Manafe, 2023), where the work
environment has a positive and significant effect on employee performance. The
existence of a work environment that meets the standards of feasibility, conducive and
comfortable will increase employee motivation in working so that employees will be even
better at improving performance.
H4: Job satisfaction through mediating work motivation affects employee
performance
Table 7 shows the significance of the relationship between job satisfaction and
employee performance through work motivation, obtaining a positive and significant
effect relationship. H4 is accepted because the t-statistic value of 3.872 is greater than the
t value (1.96) with a significance of 0.000 < 0.05. The results of the same study obtained
Boy Andika Sinaga
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2400
by Syamsir et al. (2018) showed that job satisfaction through the mediation of work
motivation has a positive and significant effect on employee performance. The existence
of job satisfaction obtained by employees through compensation and promotional
activities will motivate employees. Employees will strive to provide the best performance
results to get the same feedback. Employees who are motivated at work will not be easily
discouraged in every job, and more likely, employees will try to give their best to get
greater satisfaction (Lie, 2018).
H5: Work motivation affects employee performance
Table 5 shows the relationship of work motivation to employee performance where
the statistical t value of 4.490 is greater than the t value (1.96) with a significance of 0.000
< 0.05 so that H5 can be accepted that work motivation has a positive and significant
effect on performance. The same results are supported by research conducted by Olhe Lie
and Hotlan (2018), which found that work motivation has a significant effect on
performance. (Wijanarko & Tjahjaningsih, 2022) define motivation as a process that
results in consistency, direction and sustained effort of individuals in achieving goals.
Consistency is considered as a person's ability to strive to achieve goals continuously;
direction indicates the focus on something the individual is doing so that the goal can be
achieved; and continuous effort shows how much effort individuals continuously make
to realise their goals to have good performance. The existence of high work motivation
in employees will move employees in their business to achieve the desired goals and
results.
Conclusion
This research was conducted on PT employees. X division of Refinery-Biodiesel
Plant. The results of the study obtained are:
1. The work environment does not directly affect employee performance. This is due to
the condition of the work environment, which predominantly has hot ambient
temperatures that make employees uncomfortable at work. Similarly, job satisfaction
does not have a direct influence on employee performance. This is due to employees
feeling less satisfied with teamwork and low appreciation for the performance
performed.
2. Work environment and job satisfaction through the mediation of work motivation have
a positive and significant influence on employee performance. A good, conducive and
safe work environment will increase employee motivation. Employee job satisfaction
also has an impact on increasing work motivation.
3. Work motivation has a positive and significant influence on employee performance.
Employees who have high work motivation will try to maintain performance and do
their jobs correctly to get more job satisfaction.
As for suggestions for further research, more samples should be carried out in
different divisions. In addition, we can conduct further research related to employee
organisational commitment, work-life balance, and organisational culture as factors that
support improving employee performance.
Environmental Impact and Job Satisfaction on Employee Performance with Intervening
Variables Work Motivation (Case Study: Refinery-Biodiesel Plant Division of PT. X)
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2401
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