Compensation And Discipline Of Trading Business Sector As A Performance
Measurement In West Java During Covid 19
Uce Karna Suganda
1*, Obsatar Sinaga
2and Deden Sutisna
3 Widyatama University, Bandung Indonesia1*Uce.karna@widyatama.ac.id, 2Obsatar.sinaga@widyatama.ac.id, 3Deden.sutisna@widyatama.ac.id
Article History: Received:11 January 2021; Accepted: 27 February 2021; Published online: 5 April 2021 Abstract: The purpose of this research is to measure how the state of compensation and work discipline in the
trade business sector in West Java at the time of COVID 19 and its impact on their business performance. With the results of this research, it is hoped that it can serve as a barometer of the general economy and in particular the trade sector when COVID 19 is running, especially its contribution to the performance of this business institution. Data were collected using google form from 40 respondents who were obtained randomly from businesses that specialized in trade, both medium and large. The data obtained were tested with validity, reliability, classical assumption test, and data normality. Meanwhile, to determine the value of the contribution of compensation and work discipline on the performance of the business unit used descriptive analysis and verification assisted by SPSS version 25 software. The results of data processing show that all data after being tested are valid, reliable, multicollinear does not occur, heteroscedasticity and are normally distributed. The condition of the compensation owned by this business actor is only in good condition, the condition of work discipline shows very good and their performance illustrates the very high contribution of compensation to small performance and from large work discipline, as a whole of the two variables studied showed a large contribution. All contributions, both partial and simultaneous, are significant. The results of this research can be concluded that the conditions of compensation, work discipline and business performance during COVID 19 were not the same, both partially and simultaneously and all contributions had a fairly large and significant grade.
Keywords: Compensation, work discipline, performance, COVID 19 1. Introduction
The trade business sector is an important part of the economic order anywhere, including in Indonesia. Trade was once the downstream end of the world economic system with the concept of producer to consumer. In this concept, it is built that the downstream of trade lies in the delivery of goods and services from producers to consumers, either end consumers or users or producer consumers or non-users. However, now it has changed after consumers have one more institution that has responsibility after the goods and services arrive at consumers, namely after-sales service or customer service. This change occurred because of the renewal of the trade model in the world which required that producers have to have social responsibility, in the form of responsibility after their products are consumed by consumers.
On a micro-organizational level, the success of a company depends on the performance of employees either directly or indirectly in contributing to a company. In order to get optimal performance from the existence of employees in the company, the company needs to establish the right strategy, namely by paying attention to how to manage employees so that they are willing to achieve the company goals that have been previously set (Parastika, 2016).
Considering that the results of employee performance are an important indicator in reflecting the discipline of employee performance as stated by Hasibuan (2016), work discipline is one's awareness and willingness
in complying with all company regulations and prevailing social norms. Awareness is the attitude of a person who voluntarily obeys all the rules and is aware of his duties and responsibilities.
In addition, one of the factors that can affect employee performance is work discipline, with good discipline it will increase performance optimally. This is supported by what S Keith Davis (2003) states that:
"Work discipline as an implementation of management to reinforce the guidelines is seen as closely related to performance"
In line with the opinion of Mathis and Jackson (2002) which states that:
Supported by journal research written by Putu Agus Adnyana et al. (2016) entitled "The Effect of Compensation and Work Discipline on Employee Performance of UD. Ayu Lestari.", The results of the study stated that work discipline affects the performance of employees at UD. Ayu Lestari.
In addition to work discipline, the compensation factor is thought to be able to influence employee performance. Hasibuan (2017) argues that:
"Compensation is all income in the form of money, direct or indirect goods received by employees in return for services provided to the company. Establishing an effective compensation system is an important part of human
resource management as it helps attract and retain talented jobs. "
According to Acheampong in Hendro (2018) states that: "Compensation must be distributed in accordance with the contribution given to the company in the form of bonuses, subsidies and welfare must be included in the pay system. Then additional salaries and bonuses in accordance with employee contributions can be a strong motivator for improving individual performance”.
Based on some of the above theories, it can be said that compensation is able to provide a boost to employee performance, with proper and good compensation will improve employee performance. This is supported by research conducted by Rani Sadzwina, Alini Gilang (2015), the results of research that partially financial compensation and non-financial compensation have a positive and significant effect on employee performance. Simultaneously compensation has a positive and significant effect on employee performance by 46.24%. According to Timoti Hendro (2018), the results of this study concluded that compensation and job satisfaction have a partially and simultaneously significant effect on employee performance (Nova Riana, 2016), the results of the study state that the effect of compensation on employee performance is 0.619 or 61.90% and significant.
Furthermore, the West Java trade balance for the beginning of 2020 in a comprehensive manner between exports and imports shows the following performance results:
Table 1. Trade balance (thousand USD), 2020
Trade Balance Trade Balance Year 2020 Month
January February March April May Oil and Gas Export 24 223,00 13 560,00 12 376,00 8 275,00 14 993,00 Non-Oil and Gas Export 2 336 872,00 2 409 482,00 2 381 607,00 1 794 253,00 1 488 777,00
Export Total 2 361 096,00 2 423 041,00 2 393 983,00 1 802 528,00 1 503 770,00 Oil and Gas Import 78 624,00 102 714,00 42 917,00 23 010,00 23 793,00 Non-Oil and Gas Import 883 431,00 531 529,00 693 545,00 722 325,00 442 177,00
Import Total 962 055,00 634 244,00 736 462,00 745 335,00 465 969,00 Trade Balance 1 399 040,00 1 788 798,00 1 657 521,00 1 057 193,00 1 037 800,00 https://jabar.bps.go.id/indicator/8/356/1/neraca-perdagangan.html
From January to February 2020, the total export conditions of the trade sector in West Java experienced a good and significant increase in the export sector, offset by a decrease in total imports. Through the middle of February or March 2020, West Java's imports have continued to increase while exports have decreased, this shows a bad feeling in the international trading system, and the decline in the trade balance is mostly due to the impact of Covid 19. In the practical context of this trade, this is the government's performance. West Java Province in the trade sector which simultaneously reflects the effectiveness of compensation variables, work discipline on the performance itself.
Based on this, the problem formulations in this research are 1) what is the condition of compensation, work discipline and HR performance in the trade sector, 2) how much is the contribution of compensation, work discipline to HR performance in the trade sector during the COVID 19 in West Java. Thus, departing from the formulation of the problem, the purpose of this research is to measure how the state of compensation and work discipline in the trade business sector in West Java at the time of COVID 19 was running and its impact on their business performance. With the results of this research, it is hoped that it can serve as a barometer of the general economy and in particular the trade sector when COVID 19 is running, especially its contribution to the performance of this business institution.
2. Theoretical Basis
As a theoretical basis, this research was built using several theoretical concepts from experts and the results of previous research, namely:
2.1. Work discipline
Discipline is the direction of training and shaping someone to do better. Work discipline shows that employees have conditions or attitudes that respect company rules and regulations. Rules and regulations involved include employee attendance, tardiness and early return. If an employee has a sense of responsibility for the task assigned to him, then the employee has good work discipline. The following work disciplines are determined by experts namely Hasibuan (in Barnawi 2012) states that:
"Work discipline is the ability of a person to work regularly, diligently, continuously, and work in accordance with applicable rules without violating predetermined rules."
The above definition can be interpreted as the seriousness of a person's proper work. According to Sastrohadiwiryo (2013), the definition of work discipline is as follows:
"Work discipline can be defined as an attitude of respect, respect, obedience and obedience to the prevailing rules, both written and unwritten, and being able to carry it out and not evade to accept the sanctions if he
violates the duties and authorities given to him."
This definition shows that good work discipline is when it is responsible. Then, it was raised according to Hasibuan (2014) which states as follows:
"Discipline is the sixth operative function of Human Resource Management (MSDM). Discipline is the most important HRM operative because the better the employee's discipline, the higher work performance they can achieve. Without good employee discipline, it is difficult for corporate organizations to achieve optimal results.
"
This definition guides the discipline for examining, supervising and researching job responsibilities. Furthermore, Sutrisno (2014) says that:
"Work discipline is the attitude of a person's availability and willingness to obey and obey the prevailing regulatory norms around him."
Here some people think that work discipline is reflected as a means (energy and mind) to prepare and implement obediently within a predetermined time. Meanwhile, according to Handoko in Sinambela (2016) that: "Work discipline is the availability of someone who arises with his own awareness to follow the rules that apply
in the organization."
2.2. Compensation
In order to pay back the company's services to its employees, the company provides compensation to each employee, so the company will provide compensation to each employee to encourage employees to give their full capabilities to the company, which is equivalent to returning the company to employees. Like what Sastrohardiwirjo (Priansa, 2014) said that:
"Compensation is a reward for services or remuneration provided by the organization to the workforce, because the workforce has contributed energy and thoughts for the progress of the organization in order to achieve the stated goals." Meanwhile, according to Werther and Davis (Priansa, 2014) that: "Compensation is something that employees receive in exchange for their contribution to the organization."
The two definitions above refer to reciprocation as reciprocation of services in the work group. Furthermore, Hasibuan (2014) states that "Compensation is all income in the form of cash or goods directly or indirectly received by employees in return for services provided to the company. "
A more detailed explanation of direct income such as basic salary or minimum wage, achievement wages, incentives in the form of bonuses, profit sharing, commissions and stock options), and deferred payments (savings programs and stock annuity). While indirect income such as those related to protection (life insurance, health insurance, employment insurance, pension savings), wages outside of working time (holiday wages, holidays, holidays, annual leave and maternity leave, as well as various facilities that can accessible such as vehicles, rooms, buildings, and parking lots.
2.3. Employee performance
To have high-performing employees to support the success of company goals, the following can be explained by the definition of performance according to Bernardin and Rusel in Priansa (2014) that:
“Performance is a result produced by certain job functions or activities at certain jobs during a certain period of time."
This definition describes in the form of an acquisition that can be achieved within a predetermined time. Mangkunegara (2014) explains the definition of performance as follows:
"Employee performance (work performance) is the result of work in quality and quantity achieved by a person in carrying out his duties in accordance with the responsibilities assigned to him."
This definition refers to the level of quality of employees and their achievements According to Mangkuprawira and Hubeis in their book Human Resources Quality Management (2014) that:
"Performance is the result of a certain planned work process at the time and place of the employee and the organization concerned."
Here it is argued that performance means that performance is executed in detail. Rivai (in Muhammad Sandy, 2015) explains that:
"Performance or work performance is the result or level of success of a person as a whole during a certain period in carrying out a task compared to various possibilities, such as standard work results, targets or targets
or criteria that have been predetermined and mutually agreed upon." This definition leads to the achievement of the limits set by the organization.
3. Research Methods
This research was assisted by Soft Ware SPSS Version 25 in data processing, so that the data test used validity, reliability, classical assumptions and data normality. To determine the condition of each variable under study, a frequency output is used so that it can be sounded qualitatively in an effort to meet the needs of descriptive analysis. Meanwhile, to determine the size of the contribution of each variable used regression analysis, correlation and termination.
Data were collected using questionnaires from respondents with Google Form from 40 trading business actors in West Java. Selected respondents are engaged in the trading business from various sectors in West Java, when the 10th month of COVID-19 became a pandemic in West Java.
4. Research Results and Discussion
The data obtained are primary with an ordinal scale, after data transformation and data testing are carried out, all data both compensation, work discipline and HR performance in this sector are valid, reliable, do not occur multicollinear, do not occur heteroscedasticity and data are normally distributed. For this reason, the data meets the requirements for further processing in accordance with scientific principles.
The results of this study indicate how appropriate the compensation received by each worker in this sector will have an impact on various aspects of human resources including performance and discipline. The conditions for compensation are as follows:
Table 2. Frequencies statistics for X1 VAR0000 1 VAR0000 2 VAR0000 3 VAR0000 4 VAR0000 5 VAR0000 6 VAR0000 7 VAR0000 8 VAR00009 N Valid 40 40 40 40 40 40 40 40 40 Missing 0 0 0 0 0 0 0 0 0 Mean 3.9500 3.7500 3.6500 4.0250 3.7000 3.8500 3.7000 3.9000 3.7750 Median 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 Minimum 2.00 1.00 2.00 3.00 2.00 3.00 2.00 2.00 1.00 Maximum 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Sum 158.00 150.00 146.00 161.00 148.00 154.00 148.00 156.00 151.00
The HR compensation condition in this sector is not at the optimal level because it is only in a good position, the average value is 3.80 in the interval 3.00 - 4.00 and the condition is good. This condition is possible because there are conditions that must be faced when COVID-19 is running, such as online markets, social distancing, COVID 19 regulations, Work from Home, and even being sent home, which makes the contraction they receive is not good. The results of this study are in line with the results of research from Deden Sutisna 2020, which states that the level of contribution of MSME players in one of the cities in West Java at this time can no longer be expected to meet the needs and business responsibilities they are running.
4.2. Conditions of work discipline for human resources in the trade sector during Covid 19
Discipline variable comes from the motives of each individual in this HR sector, the strength and weakness of this aspect will greatly affect other variables such as compensation and performance. The conditions of work discipline possessed by the HR sector are as follows:
Table 3. Frequencies statistics for X2 VAR000 01 VAR0000 2 VAR0000 3 VAR000 04 VAR000 05 VAR000 06 VAR000 07 VAR0000 8 VAR000 09 N Valid 40 40 40 40 40 40 40 40 40 Missing 0 0 0 0 0 0 0 0 0 Mean 4.4750 4.3250 4.2250 4.1500 4.1500 4.2500 4.1250 4.2250 4.2250 Median 4.5000 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 Minimum 3.00 3.00 2.00 3.00 3.00 2.00 3.00 3.00 4.00 Maximum 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Sum 179.00 173.00 169.00 166.00 166.00 170.00 165.00 169.00 169.00 Based on the table above the mean shows a number> 4,100, meaning that this value is in the interval 4.00-5.00 and falls in a very good area. This means that the work discipline carried out by HR in this sector when COVID 19 occurs is still very feasible and very good. The results of this study are in line with the results of research from Deden Sutisna 2020, which states that the level of loyalty of MSME players in one city in West Java is still good for the business they are running.
4.3. Human resources performance conditions in the trade sector during Covid 19
Performance is the performance possessed by every human resource in the trade sector. This variable is one of the downstream goals of the business unit. This performance condition looks as follows:
Table 4. Frequencies statistics for Y
VAR00001 VAR00002 VAR00003 VAR00004 VAR00005 VAR00006
N Valid 40 40 40 40 40 40 Missing 0 0 0 0 0 0 Mean 4.2750 4.1000 4.0250 3.8750 4.1250 4.1500 Median 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 Minimum 4.00 3.00 3.00 1.00 2.00 3.00 Maximum 5.00 5.00 5.00 5.00 5.00 5.00
Sum 171.00 164.00 161.00 155.00 165.00 166.00 The output condition of the human resource performance in the trade sector when COVID-19 took place showed a very good value, mean 4.00 in the interval 4.00 - 0.500. This shows that the current performance condition is still very good, although it shows a cumulative decline (see Table 1).
4.4. Contribution of human resources in the trade sector to the current performance of Covid 19
The results of this research show how big the contribution of this variable is to the performance built by the human resources of this sector during the 19 pandemic. The conditions for this contribution show the following:
Table 5. Model summary compensation variable
Model R R Square Adjusted R Square Std. Error of the Estimate Change Statistics Durbin-Watson R Square Change F Change df1 df2 Sig. F Change 1 .263a .069 .045 2.29950 .069 2.831 1 38 .101 2.254 a. Predictors: (Constant), Work Compensation
b. Dependent Variable: Work Performance
The level of contribution from the compensation of the players in the trade sector to performance is 6.90%, the remaining 93.10% is determined by other variables not examined. This influence is categorized as very small, meaning that the contribution of compensation received by traders in West Java during CONVID-19 has not contributed much in determining the performance of human resources in this sector.
4.5. Contribution of human resources work discipline in the trade sector to performance during Covid 19
Work discipline is an important factor that needs to be considered, because this factor will determine the level of performance achievement of the HR itself. The contribution of the HR sector's work discipline can be explained as follows:
Table 6. Model summaryworks discipline
Model R R Square Adjusted R Square Std. Error of the Estimate Change Statistics Durbin-Watson R Square Change F Change df1 df2 Sig. F Change 1 .706a .498 .485 1.68893 .498 37.688 1 38 .000 1.973 a. Predictors: (Constant), Work Discipline
b. Dependent Variable: Work Performance
The level of contribution from work discipline to performance is 49.80%, the remaining 50.20 $ is determined by other variables not examined, such as economic conditions, government policies and international trade and this influence has a fairly large grade. This discipline has a fairly good percentage, considering that when this pandemic occurs, many changes must be made.
4.6. Contribution of compensation and work discipline of human resources in the trade sector to performance during Covid 19
The results of this research show the simultaneous contribution of compensation and work discipline to the performance of human resources in this sector in West Java. The level of contribution is shown as follows:
Table 7. Model summarywork performance
Model R R Square Adjusted Square Std. Error of the Estimate Change Statistics Durbin-Watson R Square Change F Change df1 df2 Sig. F Change 1 .706a .498 .471 1.71105 .498 18.372 2 37 .000 1.987 a. Predictors: (Constant), Work Discipline, Work Compensation
b. Dependent Variable: Worker Performance
The output of SPSS V 25 shows that the contribution of compensation and work discipline is 49.80%, the remaining 50.20% is determined by other variables not examined such as worker motivation, education, labour
law etc. The degree of this contribution is quite large, which means that the two variables studied are still not optimal in encouraging the performance of this sector.
5. Conclusion 5.1. Conclusion
1. The current condition of compensation for human resources in the trade sector in West Java has not been well developed, as well as very little contribution to performance.
2. The work discipline of human resources in the trade sector is currently quite good, with a significant contribution to performance.
3. Simultaneously, compensation and work discipline have a good contribution to performance and are significant.
5.2. Suggestions
The compensation aspect given by the company as an institution of this sector must immediately restore its human resource compensation, so that the performance of this sector will be boosted to the optimal, and establish when COVID 19 is running.
Local governments must finalize regulations related to policies related to compensation for human resources in this sector, so that they will simultaneously assist the company in increasing compensation. For example, social assistance which is sectoral in nature specifically for the HR cluster in this sector.
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