THE EFFECT OF STRATEGY COMPETENCY AND WORK MOTIVATION ON ORGANIZATIONAL PERFORMANCE OF ARMY HEADQUARTERS MEDIATED BY ORGANIZATIONAL COMMITMENT

 

Erwin Junaedi ¹, Yuzwar Z Basri ², Kusnadi ³

 

^1,2,3 Faculty of Economics, University Trisakti Jakarta, Indonesia

 

1. INTRODUCTION

Organizations currently carry out their activities in a competitive environment, and if the organization wants to survive and exist, it must be prepared to face many challenges whose impacts will affect performance both positively and negatively. Organizations that can face challenges by using resources as much and efficiently as possible will be able to maintain and even improve their business performance. Organizational performance is a vital indicator of organizational success or failure.

Indonesian National Armed Forces Army is a military organization that was formed based on a Government Decree based on Law Number 04 of 2004 concerning the Indonesian National Army. That the Indonesian National Armed Forces must be more professional, objective and with integrity so that it becomes a character for each individual how to behave and act in every situation/condition of carrying out their duties. This will certainly be realized if all organizational units in the Indonesian Armed Forces have matured in managing an organization, have a mentality that supports high-performance organizations, clear and effective management, carry out the management of Human Resources based on a merit system, are accountable, and have reliable internal control.

Work motivation is a process by which a person or persons, groups, organizations, and societies create, and use information to connect with an environment or other people. Work Motivation in the internal organization is very strong, the exchange of ideas between employees and administrators in a company, in a complete structure and accompanied by the exchange of ideas horizontally and vertically within the company, so that work can run. This will be part of the activities of the Indonesian Army National Armed Forces Headquarters to work together to produce good performance for the organization.

Organizational Commitment is essentially an individual's attitude and values ​​given to the organization in the context of devoting himself to an organization and being involved in efforts to achieve the mission, values, and goals of the organization. The concrete form is the extent to which members of the organization devote attention, ideas, and responsibilities in an effort to achieve organizational goals. There are two things that are requirements for organizational commitment, namely the togetherness of a person towards his organization and active participation in his organization. To understand Organizational Commitment, it is necessary to know what things make employees want to remain as members in an organization

The potential of every human resource in an organization must be utilized as well as possible so that it is able to provide optimal work results. Potential according to Hamid et al. (2019), is the ability, ability, strength, or power that has the possibility to be developed again into a larger form. The achievement of the goals that have been set by an organization does not only depend on modern equipment, complete facilities and infrastructure, but also depends on the people who carry out the work. The success of an organization is greatly influenced by the individual performance of its employees.

Organizational Performance in an organizational environment naturally displays the needs of every human being which is very diverse, both in type and level, even having needs that tend to be unlimited, meaning that needs always increase from time to time according to social status and position, so that every human being always strives with everything in its power to satisfy those needs. This need is defined as everything that is owned, achieved, and enjoyed, therefore it will always be driven to carry out activities well to fulfil job satisfaction, although not all activities are said to be performance.

The phenomena described above are generally reflected as organizational problems for the Indonesian Army National Armed Forces Headquarters, however, these problems are closely related to the performance of the organizations under them, namely the Inspectorate General of the Indonesian Armed Forces of the Indonesian Armed Forces, the Personnel Staff of the Indonesian Armed Forces, the Army Staff. Indonesian Army National Armed Forces Logistics, Indonesian Army Planning and Budget Staff, abbreviated.

The research gaps found, among others, are 1) Strategy Competency of the Indonesian Army National Armed Forces Headquarters must always consider aspects of technological progress, strategic environmental development conditions and employee competencies 2) Human Resources Work Motivation that leads to the Indonesian Army National Army Headquarters must have a field of duty and development of science and technology 3) Organizational Commitment must be an integral part in achieving the goals, main tasks and functions of the Indonesian Army National Army Headquarters 4) Organizational Performance. The Indonesian Army National Army Headquarters must be dynamic and committed to the future and the possibility of changes that may occur.

Based on the research gap above, it is necessary to dig deeper into the governance of the performance of the General Staff of the Indonesian Army National Armed Forces Headquarters, the Inspectorate General of the Indonesian Armed Forces, the Indonesian Army's Personnel Staff, the Indonesian Army's Logistics Staff, the Army Staff Planning and Budgeting of the Indonesian Armed Forces, which is focused on discussion. However, in this study, not all problems and variables will be discussed and researched, given the wide and varied background of the variables, therefore the more focused discussion is limited to four main variables, namely Strategy Competency, Work Motivation, Organizational Commitment, and Organizational Performance.

Novelty or novelty in this research is the analysis of Strategy Competency, Work Motivation on Organizational Performance of Army Headquarters mediated by Organizational Commitment. The general objective of this research is to provide input to the leadership of the Indonesian Army National Armed Forces Headquarters regarding the importance of improving Human Resources, through increasing good work motivation and applicable Competency Strategy in order to produce good Organizational Commitment and Organizational Performance to support the success of the Headquarters. The size of the Indonesian Army National Army, especially in the General Section of the Indonesian National Army Inspectorate General of the Indonesian Army National Army, Personnel Staff of the Indonesian Army National Army, Logistics Staff of the Indonesian Army National Army, Planning and Budgeting Staff of the Indonesian Army National Army, with have a good quality team, serve the community and protect the interests of the country.

 

2. LITERATURE REFERENCES

This study tries to develop theories about Strategy Competency, Pekka  (2016), Murawski and Bick (2017), Solansky and McIver (2018), Tang (2018), Andrades and Dimanche (2019). Strategy Competency is an ability or a person's capacity to perform various tasks in a job Robbins et al. (2016), where the ability is determined by intellectual and physical factors.

Work motivation is the process through which individual employees identify and take steps to achieve their career goals influenced by training, promotions, transfers and work performance Lichtenthaler and Fischbach, (2015), Roche and Haar (2019), Kongcharoen et al. (2019), Gupta (2020), Morkevičiūtė and Endriulaitienė (2020).

Organizational Commitment according to Klein and Park (2015) that "Organizational commitment refers to the employee's emotional attachment to, identification with, and involvement in a particular organization". Thus, organizational commitment refers to the emotional attachment, alignment, and involvement of a person in a particular organization. Therefore, organizational commitment is one of the demands for every member of the organization in order to develop their organization Stinglhamber et al. (2016), Hanaysha  (2016), Triebel  (2016), Nikpour  (2017), Aranki et al. (2019).

Organizational Performance according to Antony and Bhattacharyya (2018), Oyewobi et al. (2019) The potential success of an organization depends to a large extent on performance, which is related to its ability to effectively implement strategies to achieve organizational goals. Baird et al. (2019), Chen et al. (2020).

The strategic management process includes strategic planning, strategy formulation, strategy implementation, monitoring, and evaluation which in previous studies have been seen to influence the company's competitive position in the industry so as to determine performance Cameron (2017). The practice of strategic decision making in organizations is what is generally referred to as the strategic management process Pistoni and Songini 2017. Employee competence is an ability or a person's capacity to perform various tasks in a job Robbins et al. (2016), where the ability is determined by intellectual and physical factors. Another opinion says that the meaning of competence is a skill, knowledge, basic attitude, and value contained in a person which is reflected in the ability to think and act consistently. In other words, competence is not only about one's knowledge or ability, but the willingness to do what is known so as to produce benefits.

According to Cameron (2017) Strategy Competence is the knowledge, skills, attitudes, and personal values ​​needed to carry out tasks. Kakemam et al. (2020) also considers that Strategy Competence contains professional knowledge, professional skills, and professional attitudes and states that professional Strategy Competence standards are based on recognized specializations in a certain period, and professional knowledge, skills, and attitudes will work together. and occur simultaneously. It expresses the time meaning of professional Strategy Competence. In other words, the knowledge skills or standards required for specialization will change with time. Strategy Competence with a broad perspective, engaging in all professional areas and the main problems of the customers served, Professional Strategy Competence not only includes personal specific performance on cognition, affection, and skills, but will be involved in personal needs for roles or work positions Nijhuis et al. (2018).

Motivation is all power and effort to provide stimulation to employees to work with all their abilities. That the work a manager does is to inspire, encourage, and encourage other people (employees) to take actions. This encouragement is intended to remind people or employees so that they are enthusiastic and can achieve the desired results from that person. Therefore, a manager is required to know or understand the nature and characteristics of his employees, a need that is based on motivation, so managers can influence their subordinates to act in accordance with the wishes of the organization Handayani and Rasyid (2015).

Motivation is basically the process of trying to influence someone to do what we want. In other words, motivation is an external push for someone to want to do something. By driving force here is meant the natural urge to satisfy the necessities of life, and the tendency to sustain life. The most important key for that is none other than a deep understanding of humans Ardiana (2017).

Organizational performance is considered an important requirement for the strategic management of companies, and as a result organizations tend to invest most of their efforts to improve their performance Babazadeh and Farahani (2018). The potential for success of an organization depends to a large degree on its performance, which is related to its ability to effectively implement strategies to achieve organizational goals Hani Al-Dmour et al. (2015). Several researchers have defined different definitions for Organizational Performance, because Organizational Performance is a fairly broad concept, and its meaning changes according to the perspectives and needs of users Mohd et al 2015. Organizational Performance reflects the way an organization takes advantage of tangible and intangible resources to achieve the goals and culmination of the organization's work processes and activities. According to Sjoerd et al, 2017 Organizational Performance is defined in relation to organizational goals and objectives. Tomal (2015) mentions Organizational Performance as the actual result or output of an organization measured against the intended output of the organization. Since Organizational Performance is a multidimensional concept, it seeks to measure the performance of a company's proposed goals for different stakeholders in a given period Richard et al. (2019).

 

3. METHODOLOGY

The type of data used in this study is the type of subjective data. The type of subjective data is the type of data in the form of opinions or opinions from research respondents on the questionnaires that have been distributed. The data sources used are primary data sources where primary data is data obtained directly through distributing questionnaires to respondents.

In this research, the data collection method used is a field study method with a questionnaire distribution technique which is done by giving a set of questions or written statements to the respondents, as well as observations made directly to the research objects, especially those concerning the variables studied.

Questionnaires were distributed to respondents who are leading officials at the Inspectorate General of the Indonesian Army, Indonesian Army Personnel Staff, Logistics Staff of the Indonesian Army, Indonesian Army Planning and Budget Staff, level of strategic or operational policy makers. The number of samples in this study that was successfully obtained would be respondents, using primary data and distributing questionnaires directly. Individuals who meet the requirements to be selected as respondents are those who meet the following criteria:

1)     The current position in the Military organization where you serve is the minimum as a policy maker.

2)     Minimum five years of working experience in Military Organizations.

3)     The current length of service is a minimum of two years.

4)     Minimum education is Strata one or equivalent in the field of defines/military.

The above criteria are made with the assumption that the respondent already has sufficient and relevant knowledge of the defines organization. In addition, it is also assumed that the respondent is sufficiently familiar with the object of research so that data related to the object of research can be obtained through the respondent. The criteria for determining the number of samples are based on considerations of the use of the analytical tools to be used. In this study, we will use a structural equation model or Structural Equation Modelling (SEM) as an analysis. A minimum sample size of 100 will be used as a benchmark referring to Wijayanto (2015) which states that a minimum sample size of 100 is sufficient to be used to estimate the model.

The population involved as objects in this study is at the Indonesian Army National Armed Forces Headquarters, which is below it, namely the Inspectorate General of the Indonesian Armed Forces, the Indonesian Army Personnel Staff, and the Logistics Staff of the Indonesian Armed Forces. The Planning and Budgeting Staff of the Indonesian Armed Forces, abbreviated as having approximately 125 employees who fall into the leadership category and Echelon 1, Echelon II and Echelon III who can make decisions from each division or directorate. The sample in this study is random or probability, that is, where the selected population elements have the same opportunity to be selected. The method of collecting and determining the sample is used purpose sampling. The method used with certain criteria is in accordance with the needs in the research. Hair et al. (2015), Voler (2015)

Primary data collection in this study was carried out through a survey process. The survey was conducted using a questionnaire instrument. Questionnaires are the most commonly used data collection instrument in business research Cooper and Schindler (2014a). The questionnaire made did not ask for the name of the respondent and the company where he worked to ensure that the respondent gave an objective answer. The cover letter also states that the data collected will be kept confidential and for academic purposes only, so to ensure its representation the probability sampling technique chosen is stratified random sampling. The method that can be referred to to get the sample size is according to the Krejcie and Morgan.

 

4. RESULT AND DISCUSSION

Based on Krejcie and Morgan's formula and table with a population of 120 to 130, the minimum sample size for the population is 92 to 97. The questionnaire was distributed as many as 1 25 respondents who are Officers of the General Section of the Indonesian National Armed Forces, Inspectorate General of the Indonesian Armed Forces, (Itjenad), Personnel Staff of the Indonesian Army, (Spersad). Logistics Staff of the Indonesian Army, (Slogad). Planning and Budgeting Staff of the Indonesian Armed Forces, abbreviated (Srenaad). The number of samples in this study that were successfully obtained were 95 respondents, using primary data and distributing questionnaires directly.

The results of the reliability test to see the value of Cronbach's alpha and composite reliability. Terms for the value of all variables, the dimensions for Cronbach's alpha and composite reliability are 0.7. If the final results for Cronbach's alpha and composite reliability have reached a value of 0.7, then the test for the Inner model or the second stage of testing of all research variables can be continued, from the reliability test results in Table 1

 

Table 1

Table 1 Reliability Test Results
Strategic Competency	Sikap, Pengetahuan, Ketrampilan	0.882	0.910
Work Motivation	Achievement, Power, Affiliation	0.939	0.949
Organizastional Commitment	affective commitment, continuance commitment, normative commitment	0.770	0.780
Organizational Performance	Future Orientation, Profitabilitas, Diversity.	0.726	0.810
Source: Processed data (2022)

 

Pengujian model struktural dapat di evaluasi dengan melihat model R-square untuk setiap variabel laten endogen sebagai kekuatan prediksi dari model tersebut. Nilai path coeffisient untuk variabel endogen dinilai signifikansi berdasarkan nilai T-statistic atau P-Value. Jika semua syarat tersebut telah terpenuhi maka akan mendapatkan hasil PLS Boothstrapping Hasil dari pengujian model structural dapat dilihat pada Figure 1 dibawah ini:

 

Figure1

Figure 1 PLS Bootstrapping Results Display Source: Processed data (2022)

 

The results of testing the hypothesis of the influence of each variable are as follows:

H1. Effect of Strategic Competency on Organizational Performance. Strategic Competency has a T-Statistic value of 16,460 > 1.96 and a P-Value of 0.000 < 0.050. This figure shows that Strategic Competency has a significant positive effect on Organizational Performance.

H2. The Influence of Work Motivation on Organizational Performance. Work Motivation has a T-Statistic value of 1.976 > 1.96 and a P-Value of 0.049 < 0.050. This figure shows that Work Motivation has a significant positive effect on Organizational Performance.

H3. Effect of Strategic Competency on Organizational Commitment. Strategic Competency has a T-Statistic value of 2.206 > 1.96 and a P-Value of 0.028 < 0.050. This figure shows that Strategic Competency has a significant positive effect on Organizational Commitment.

H4. The Effect of Work Motivation on Organizational Commitment. Work Motivation has a T-Statistic value of 6992 > 1.96 and a P-Value of 0.000 < 0.05. This figure shows that Work Motivation has a significant positive effect on Organizational Commitment.

H5. The Effect of Organizational Commitment on Organizational Performance. Organizational Commitment, has a T-Statistic value of 2.900 > 1.96 and a P-Value of 0.004 < 0.050. This figure shows that Organizational Commitment has a significant positive effect on Organizational Performance.

H6. Effect of Strategic Competency on Organizational Performance mediated by Organizational Commitment. Organizational Commitment, has a T-Statistic value of 1,966 > 1.96 and a P-Value of 0.050 < 0.050. This figure shows that Organizational Commitment has a significant positive mediating effect on Strategic Competency on Organizational Performance.

H7. The Effect of Work Motivation on Organizational Performance mediated by Organizational Commitment. Organizational Commitment, has a T-Statistic value of 2.559 > 1.96 and a P-Value of 0.011 < 0.050. This figure shows that Organizational Commitment has a significant positive mediating effect of Work Motivation on Organizational Performance.

 

5. CONCLUSION

The results of this study provide a conclusion that in general, Strategic Competency and Work Motivation are variables that affect Organizational Commitment as a mediating variable. Likewise, Organizational Commitment has a good influence on Organizational Performance, as well as the Organizational Commitment variable as a mediation of the Strategic Competency and Work Motivation variables which have a strong influence on the Personal Organizational Performance of the General Section of the Indonesian National Army Army, Inspectorate General of the Indonesian Armed Forces, Indonesian National Armed Forces Personnel Staff. Logistics Staff of the Indonesian Army's National Armed Forces, Planning and Budgeting Staff of the Indonesian Army's National Armed Forces. The conclusions based on the research objectives are as follows:

1)     There is an influence of Strategy Competency on Organizational Performance, meaning that the expectation desired by every resource involved in an organization is how the competencies that have been owned by each personnel can be given the opportunity to develop and are also beneficial for the organization. Soldiers and Military Staff have a way of thinking and behaving in accordance with the character desired by the organization such as being brave, willing to sacrifice, working hard and willing to help others, and also having strong and skilled knowledge of the task, as well as getting knowledge development from the institution. Organizational performance will be achieved well

2)     There is an influence of Work Motivation on Organizational Performance, this is giving the meaning that Work Motivation is a good spirit for the personnel of the General Section of the Indonesian Army, the Inspectorate General of the Indonesian Army, and the Personnel Staff of the Indonesian Army. Logistics Staff of the Indonesian Army's National Armed Forces, Planning and Budgeting Staff of the Indonesian Army's National Armed Forces. Work motivation will grow well if the company understands maximally what the personnel wants by increasing their welfare and also increasing their ability to build an organization to become more qualified and become an organization that is able to provide comfort for both members and the community. Morkevičiūtė and Endriulaitienė (2020)

3)     There is an influence of Strategy Competency on Organizational Commitment, the meaning of this positive influence is that a good competency strategy for quality human resources and commitment to the organization can give a positive reaction to the performance of the organization, especially in increasing the capacity of quality resources and being able to make the organization better. The competency strategy by emphasizing organizational commitment can be done by increasing the dimensions of all personnel, both military and echelon in the General Section of the Indonesian Armed Forces, the Inspectorate General of the Indonesian Armed Forces, the Indonesian Army's Personnel Staff. Logistics Staff of the Indonesian Army's National Armed Forces, Planning and Budgeting Staff of the Indonesian Army's National Armed Forces. Andrades and Dimanche (2019)

4)     There is an effect of Work Motivation on Organizational Commitment, this means that it illustrates that the purpose of good work motivation is towards the organization, especially the General Section of the Indonesian National Army Army, Inspectorate General of the Indonesian Army, Indonesian Army Personnel Staff. The Indonesian Army's Logistics Staff, Planning and Budgeting Staff of the Indonesian Army's National Armed Forces will have a strong influence on organizational commitment in developing the desire of personnel to build maximum and quality performance. Morkevičiūtė and Endriulaitienė (2020)

5)     There is an influence of Organizational Commitment on Organizational Performance, meaning that the commitment of every resource involved with the organization's capabilities will have a strong influence on the progress of the organization. Organizational performance will be good with a high commitment, the possibility of decreasing performance can be avoided. Organizational commitment plays an important role in improving employee performance. The purpose of organizational commitment is to correct mistakes that occur so that they do not occur continuously. Organizational Commitment that is carried out well will be able to improve the performance and discipline of the employees and employees will always be responsible for the work carried out. This will create the maximum quality of the General Section of the Indonesian Armed Forces, the Inspectorate General of the Indonesian Armed Forces, the Indonesian Army's Personnel Staff. Logistics Staff of the Indonesian Army, Indonesian Army Planning and Budgeting Staff Aranki et al. (2019)

6)     There is an influence of Strategy Competency on Organizational Performance mediated by Organizational Commitment, this shows that with the existence of organizational commitment that mediates the human resource competency strategy contained in the General Section of the Indonesian National Armed Forces of the Army, Inspectorate General of the Indonesian Army, Personnel Staff Indonesian National Army Army. Logistics Staff of the Indonesian Army National Armed Forces, Planning and Budgeting Staff of the Indonesian Army's National Armed Forces. Provide a good impact on the quality of the organization. Increasingly strengthening and willing to maintain good relations with direct superiors; maintain behaviour to respect relationships, work in groups, and be able to complete work to completion, so that in the end will talk with outsiders and co-workers about positive things about the organization, focus on the positive situation in the organization. The results of this test show that to achieve and improve Organizational Performance it is necessary to have maximum competence and commitment. Andrades and Dimanche (2019)

7)     There is an effect of Work Motivation on Organizational Performance mediated by Organizational Commitment, this shows that good work motivation affects the organizational performance of the General Section of the Indonesian National Army Army, Inspectorate General of the Indonesian Armed Forces, Indonesian Army Personnel Staff. Logistics Staff of the Indonesian Army National Armed Forces, Planning and Budgeting Staff of the Indonesian Army's National Armed Forces. Maximum work motivation for organizational members brings all personnel who are involved will be maximized to maintain the quality of the organization's work, if this application can continue to be developed, organizational commitment and organizational performance will provide good work motivation for every member of the organization in providing good service. also, for the community and the surrounding environment. The work motivation of organizational members will continue to increase in line with existing competencies and organizational commitment. Gupta (2020); Morkevičiūtė and Endriulaitienė (2020).

 

Based on the results of the research conducted, the theoretical implications related to the development of the theory of competence, motivation and organizational performance from Strategic Competency, and Work Motivation mediated by Organizational Commitment to Organizational Performance of the General Section of the Indonesian Armed Forces, are as follows:

1)     Strategic Competency, and Work Motivation The results of this study strengthen the positive and significant influence. Strategic Competency, and Work Motivation on Organizational Performance of General Section personnel of the Indonesian Armed Forces, are in line with previous research. Andrades and Dimanche (2019), Gonzalez and Melo (2019)

2)     Organizational Commitment as mediating for Strategic Competency, and Work Motivation is able to improve the performance of the Organization of the General Section of the Indonesian Armed Forces. Aranki et al. (2019)

3)     The results of the study conclude that increasing Organizational Commitment through increasing its dimensions will be able to improve the Organizational Performance of the General Section of the Indonesian Army National Army. Aranki et al. (2019) can increase the trust and loyalty of related parties. Improvement and development of the quality of human resources as well as development will provide a good indication of the Organizational Performance of the General Section of the Indonesian Armed Forces. Andrades and Dimanche (2019) , Gonzalez and Melo (2019).

 

Managerial Implications, in order to improve competence, motivation and organizational performance, officials and echelons must pay attention to the following factors:

1)     This study shows that competence, motivation and strategy greatly affect organizational performance, so increasing competence, motivation and strategy through improving every dimension of policy and strategy, must be a priority to be able to maintain organizational performance of the General Section of the Indonesian Armed Forces. so that it can give the impression and trust and loyalty of the community.

2)     The ability of human resources, in the process of assessing competence, motivation and strategy, involving all echelon parties and officials with third parties is very close, so that cooperation and conformity with technical specifications to the wishes of the community must be a top priority. Capability of the General Section of the Indonesian National Army Army. in terms of competence, motivation, the performance of sections such as decision-making officials, is a picture that can be felt by the community or parties who cooperate, so that these various qualities must be a priority for improvement and development of the General Section of the Indonesian Army National Army in meeting the quality of organizational performance, so as to be able to provide satisfaction to the community and have an impact on loyalty to the Army Headquarters, especially in the General Section of the Indonesian Army National Army.

 

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