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ISBN : 978-602-6697-30-1 94 SITUATIONAL LEADERSHIP AND COMPETENCY TOWARDWORK MOTIVATION AND ITS IMPACT ON EMPLOYEE PERFORMANCE OF SERVICE COMPANY WORKING ATWELL INTERVENTION DIVISION OF PERTAMINA HULU MAHAKAM Titi Laras 1) ,Nindyo Cahyo Kresnanto 2) ,Rini Raharti 3) ,Nurwiyanta 4) ,Adi Surahman 5) ,Kholifah Fil Ardhi 6) 1) Universitas Janabadra Yogyakarta, Indonesia / Email:[email protected] 2) Universitas Janabadra Yogyakarta, Indonesia / email: [email protected] 3) Universitas Janabadra Yogyakarta, Indonesia / email:[email protected] 4) Universitas Janabadra Yogyakarta, Indonesia / email:[email protected] 5) Universitas Janabadra Yogykarta, Indonesia / email:[email protected] 6) Universitas Muhammadiyah Yogyakarta, Indonesia / Email:[email protected] ABSTRACT : The aims of this research to know and obtain empirical evidence of: (1) simultaneous influence between situational leadership and competence on work motivation; (2) partial influence between the situational leadership and competence on employee motivation; (3) simultaneous influence between situational leadership and competence on the performance; (4) Partial influence between situational leadership and competence on the performance; (5) the effect of work motivation on the performance of employees; (6) situational leadership, competence and motivation influence to the performance of employees.The data source used is primary data and secondary data. Type of sampling technique using probability sampling with proportional stratified random sampling method. The samplesare 210 employees. The results: (1). Situational Leadership and Competence Leadership variables simultaneously affect the work motivation; (2). Situational Leadership has no effect partially on work motivation; (3). The competence partially affects the employee's work motivation; (4). Situational Leadership and Competence simultaneously have a positive effect on the performance of employees; (5). Situational leadership partially has no effect on the performance of employees; (6). Competence partially affects the Performance of employees; (7). Work motivation affects the performance of employees. (8). Situational Leadership, Competence, and Work Motivation simultaneously affect the Performance of Employees. Keyword: Situational Leadership, Competence, Work Motivation, Employee Performance INTRODUCTION In the draft of State Budget (RAPBN) 2018, the government is targeting oil lifting of 800 thousand barrels per day (bpd). This figure is below the 2017 target of 815 bpd and 820 bpd in 2016. For medium-term targets, oil lifting even reaches only 651-802 bpd by 2021. While gas lifting in 2018 is set at 1.2 barrels of oil equivalent per day (boepd) or up from the previous year at 1.15 boepd. The domestic lifting gas target has also declined since 2015. This condition is a challenge especially for companies engaged in Upstream Oil and Gas (Kemenkeu RI, 2017). Referring to business as usual performance, as stated in the Work Program and Budget (WP & B) proposed by a number of Contractor Cooperation Contract (KKS), the level of production capability in 2017 is still below the target of only 808 thousand bpd oil and at 1.15 million boepd gas (SKK Migas, 2017). The high rate of oil and gas achievement above the average capacity level of PSC Contractors becomes a mild task for all elements that play a role in the Upstream Oil and Gas Industry.

Transcript of SITUATIONAL LEADERSHIP AND COMPETENCY TOWARDWORK ...

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SITUATIONAL LEADERSHIP AND COMPETENCY TOWARDWORK MOTIVATION AND ITS IMPACT ON EMPLOYEE PERFORMANCE OF

SERVICE COMPANY WORKING ATWELL INTERVENTION DIVISION OF PERTAMINA HULU MAHAKAM

Titi Laras 1) ,Nindyo Cahyo Kresnanto2) ,Rini Raharti3) ,Nurwiyanta4) ,Adi Surahman5) ,Kholifah

Fil Ardhi6)

1) Universitas Janabadra Yogyakarta, Indonesia / Email:[email protected]

2) Universitas Janabadra Yogyakarta, Indonesia / email: [email protected] 3) Universitas Janabadra Yogyakarta, Indonesia / email:[email protected] 4) Universitas Janabadra Yogyakarta, Indonesia / email:[email protected]

5) Universitas Janabadra Yogykarta, Indonesia / email:[email protected] 6)Universitas Muhammadiyah Yogyakarta, Indonesia / Email:[email protected]

ABSTRACT : The aims of this research to know and obtain empirical evidence of: (1) simultaneous influence between situational leadership and competence on work motivation; (2) partial influence between the situational leadership and competence on employee motivation; (3) simultaneous influence between situational leadership and competence on the performance; (4) Partial influence between situational leadership and competence on the performance; (5) the effect of work motivation on the performance of employees; (6) situational leadership, competence and motivation influence to the performance of employees.The data source used is primary data and secondary data. Type of sampling technique using probability sampling with proportional stratified random sampling method. The samplesare 210 employees. The results: (1). Situational Leadership and Competence Leadership variables simultaneously affect the work motivation; (2). Situational Leadership has no effect partially on work motivation; (3). The competence partially affects the employee's work motivation; (4). Situational Leadership and Competence simultaneously have a positive effect on the performance of employees; (5). Situational leadership partially has no effect on the performance of employees; (6). Competence partially affects the Performance of employees; (7). Work motivation affects the performance of employees. (8). Situational Leadership, Competence, and Work Motivation simultaneously affect the Performance of Employees. Keyword: Situational Leadership, Competence, Work Motivation, Employee Performance

INTRODUCTION In the draft of State Budget (RAPBN) 2018, the government is targeting oil lifting of 800 thousand barrels per day (bpd). This figure is below the 2017 target of 815 bpd and 820 bpd in 2016. For medium-term targets, oil lifting even reaches only 651-802 bpd by 2021. While gas lifting in 2018 is set at 1.2 barrels of oil equivalent per day (boepd) or up from the previous year at 1.15 boepd. The domestic lifting gas target has also declined since 2015. This condition is a challenge especially for companies engaged in Upstream Oil and Gas (Kemenkeu RI, 2017). Referring to business as usual performance, as stated in the Work Program and Budget (WP & B) proposed by a number of Contractor Cooperation Contract (KKS), the level of production capability in 2017 is still below the target of only 808 thousand bpd oil and at 1.15 million boepd gas (SKK Migas, 2017). The high rate of oil and gas achievement above the average capacity level of PSC Contractors becomes a mild task for all elements that play a role in the Upstream Oil and Gas Industry.

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Table 1 TARGET ACHIEVEMENT OF THE NUMBER OF PRODUCTION IN EACH

KKS CONTRACTOR, YEAR 2017

No. KKS Contractor Target Achievment (in thousand of bph)

1. PT Chevron Pacific Indonesia 228,9 2. Mobil Cepu Ltd 200 3. PT Pertamina EP 84,2 4. TOTAL E&P Indonesie 52,8 5. PHE ONWJ 36,5 6. CNOOC SES Ltd 31,3 7. Chevron Indonesia Company 17,7 8. ConocoPhilips 17,4

No. KKS Contractor Target Achievment (in thousand of bph)

9. PC Ketapang Ltd 15,6 10. Petrochina International Jabung Ltd 14,4 11. Kontraktor KKS Lain 115,9

Source: SKK MIGAS 2017

Pertamina's full commitment to sustainability of production in the working area of Mahakam is also evidenced by the budget disbursed in 2018 for exploration, development and production activities. Based on data from SKK Migas, as of November 2017, the Working Area of Mahakam produces oil and condensate of 52 thousand barrels of oil per day and 1.360 million cubic feet of natural gas per day. The potential in the Mahakam block is still promising. The proven reserves as of January 1, 2016 are 4.9 TCF of gas, 57 million barrels of oil and 45 million barrels of condensate. The management of Mahakam Working Area by Pertamina makes Pertamina as a contributor of more than 30% of national oil and gas production in 2018 (Pertamina News-Room, 2018). The 2018 Working Program and Budget Agreement (SKP) by SKK Migas targets Pertamina Hulu Mahakam production of 42.01 thousand barrels of oil per day and 916 mmscf of gas per day. This figure is achieved by drilling development wells of 69 wells, 132 workover wells, 5.623 repair wells and POFD 5 oil and gas fields in Mahakam Working Area (Pertamina News-Room, 2018). Historically, the working contract of Mahakam Working Area was first signed by Total E & P Indonesie and Inpex on October 6, 1966 for a period of 30 years. Total E & P Indonesie gained participation from Inpex by the end of 1970 and determined as an operator. In 1991, Total E & P Indonesie obtained a 20-year contract extension until March 30, 2017. The Mahakam's contract has an additional period of 9 months until December 31, 2017. This increase is due to the LNG sales contract extended until December 31, 2017. In journey, this French company also listed as the largest gas producer in Indonesia and supplying about 60% of the Bontang LNG plant needs. The oil and gas production of the Mahakam block started from the Bekapai field in 1974. Since the success of the first exploration, oil and gas were successively found in seven other fields namely Handil (1974), Tambora (1974), Tunu (1977), Peciko (1983), Sisi (1986), Nubi (1992), and South Mahakam (1996) located in Kutai Kartanegara District, East Kalimantan (Energia, 2018). The big challenge must be faced by Pertamina Hulu Mahakam.

Mahakam block is a mature field that must be developed in a special way, because this block has different reservoir characteristics than most of the field. Appropriate technology should continue to be developed by searching and learning different things as well as innovating for production reliability. The technology and solid team coordination is an answer to help maintain and increase oil and gas production in the Mahakam Block. Another challenge in today's digital era, we must accept the fact that the conditions around us are increasingly uncertain. One of the challenges that must be faced in the business world is VUCA world. VUCA which stands for Volatility, Uncertainty, Complexity and Ambiguity is a picture of the situation in the business world today. Volatility is a very rapid dynamics of change, Uncertainly defined as a lack of predictability of issues and events that occur, Complexity is the disruption and chaos that surrounds every organization. Improving the quality of Human Resources within the Company of Pertamina Hulu Mahakam is not only done to employees of Pertamina Hulu Mahakam company itself, but also to employees of the Contractor company (Service Company) working for Pertamina Hulu Mahakam in accordance with the standards set by the company . Contracting companies (service companies) are frontliners as job executors, especially under the Well

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Division of Intervention. The Company Contractor (Service Company) is still active in the year 2017 as follows:

Table1.

CONTRACTOR COMPANY(SERVICE COMPANY)UNDER

WELL INTERVENTION DIVISION

No. Company Name Unit Employee number in PHM area 1 Elnusa - Slickline

- Snubbing - Coil Tubing - Well Testing

150

2. Nesitor - Slickline 125 3. Schlumberger - Slickline

- Electricline 95

4. Adimas - Well Testing 45 5. Baker - Electricline 22

Jumlah 437 Source: Technical Admin TTH, 2017.

Competence is a dimension of behavior that exists behind competent performance that shows how people behave when they perform their role well. Chompetence is a basic characteristic of personnel who become the determinants of success or failure to do a job or in certain situations. On the other hand, the company's demands on employees must also be balanced with the increased competence required. With situational leadership and adequate competence improvement to employees are expected to provide motivation and improve the performance of each employee increased. Motivation that exists when a person will realize a behavior directed towards the goal of achieving the goal of satisfaction. So motivation is not something that can be observed, but it is something that can be inferred because of a visible behavior.

Several previous studies that examine the factors that affect employee motivation and employee performance have been done. Leadership and competence are found to be related to employee work motivation. The better the leadership factor, the higher the employee's performance can be expected. The higher the employee competency, the higher the employee's performance (Widyatmini and Hakim, 2008). Research conducted by Primanda and Azzuhri (2014), showed that work motivation significantly influence to employee performance. While from research Agustina (2010), From result of analysis which have been done, intrinsic motivation and extrinsic motivation have real effect to employee performance. Based on the research background as described previously, the problem in this research can be formulated as follows: a. How is the simultaneous influence between situational leadership and competence on employee

motivation of the Contractor (Service Company) working under the Well Intervention division of Pertamina Hulu Mahakam?

b. What is the partial influence between situational leadership and competence on employee motivation of the Contractor (Service Company) working under the Well Intervention division of Pertamina Hulu Mahakam?

c. How is the simultaneous influence between situational leadership and competence on the performance of Contractor employees (Service Company) working under the Well Intervention division of Pertamina Hulu Mahakam?

d. What is the partial influence between situational leadership and competence on the performance of Contractor employees (Service Company) working under the Well Intervention division of Pertamina Hulu Mahakam?

e. What is the effect of working motivation on the performance of Contractor's employees (Service Company) working under the Well Intervention division of Pertamina Hulu Mahakam?

f. What is the influence of situational leadership, competence and motivation on the performance of Contractor employees (Service Company) working under the Well Intervention division of Pertamina Hulu Mahakam?

Literature Review And Hypothesis

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Figure:1.The Grand Theory

The influence of Situational Leadership toward Working Motivation

Situational leadership is a leadership activity in its efforts to influence, encourage, guide, direct and mobilize employees by approaching the particular situation and maturity level of subordinates who led. The situational leadership theory developed by Robert House called The Pathgoal theory in the Sujak quote (1990: 17) suggests the "hope" theory in motivation which says that people will be motivated by two expectations of the ability to do a task and a sense of belief that if the employee can do a good job of obtaining a valuable gift for himself. Situational leadership uses the same two dimensions of leadership as Fiedler recognizes: the behavior of tasks and relationships. But Hersey and Blanchard (1998: 13) go so far as to assume each dimension as high or low and then combine them into four specific leader behaviors: telling, selling, participating, delegating ). So leadership in the Hersey and Blanchard theories puts forward the situational leadership style of leaders who have adapted their leadership style to the needs of the situation. According to previous research Syamsuddin (2016) and Sinollah (2014), both studies show that situational leadership styles are instructional, consultative and delegates have a positive and significant influence on employee work motivation. From the description above it can be concluded that Situational Leadership will affect the growth of employee work motivation. Employees need motivations that come from outside of himself which of course very need to be considered by a leader. The leader of a company in motivating employees should be able to provide equipment, create a good working environment, provide employee opportunities to develop a career, enabling employees to improve their morale, which is the driving force to motivate employees in directing all their potential.

The influence of Competency toward Working Motivation

Competence is a basic characteristic of the individual casually associated with the motivation to change or get a better achievement. Moving from this concept then it must be distinguished between competent and competency. Competent refers to one's work field while competency refers to the underlying behavioral dimension of competent performance. The result of Ngatemin and Arumwanti's research on the Influence of Competence on the motivation of hotel worker in north sumatera shows that the competence has significant effect on employee's motivation. Research by Rahman et al (2014) also showed that Competence significantly influence the performance of factory employees in PT.Jember Indonesia. Based on the results of these studies indicate that the competence of employees is a manifestation of all forms of ability possessed. Employees will be motivated if the competencies held in accordance with what is expected by the company. These competencies will have an impact on the level of confidence in work. Employees with high competence will tend to show their ability through achievement in the company.

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The influence of Situational Leadership, Competency Toward Working Motivation. The implementation research results on situational leadership is applied with the motivation programs provided by leaders with the aim to improve employee performance with motivation. Robins, (2008) says that with one's leadership it is able to influence the motivation or competence of individuals. Previous research results by Widyatmini and Hakim (2008) show that leadership and competence are found to be related to employee working motivation. The better the leadership factor, the higher the performance of employees can be expected. The higher the competence of employees, the higher the performance of employees. Based on the description on the results of previous research, in essence a leader has a role to influence his subordinates to want and able to work well in accordance with what he wants and for his company. Leaders with the ability and authority can influence the group to achieve the goals by providing motivation and improve the competence of subordinates (employees) as a means to provide readiness to employees in order to have the ability and willingness, so there arises a motivation / motivation to carry out its work in order to achieve a certain goal . The influence of Situational Leadership Toward Employee Performance

Employee performance is also supported by employee motivation level in doing the job. The result of Rahman et al (2014) shows that there is a significant influence of Situational leadership on employee performance is proven correct or acceptable. Leadership within a company is very important because within the company must consist of several people who join to achieve the same goal. But if within the company there is no one who can lead well then the company will not run in accordance with what was planned before. The results of this study in accordance with the opinion Robbins(2006) leadership is the ability to influence a group toward the achievement of goals. Leadership is more based on an urgent to do the role of influencing and directing effectively so that organization goals can be achieved as well. So based on the description of some previous research that has been done can be concluded that situational leadership style consisting of instruction behavior, consultation behavior, behavior of participation and behavior of delegation all contribute significantly to employee performance. The role of leadership style will be important and necessary to harmonize the various needs and also to create a conducive working situation. In addition, it can encourage employees to behave in accordance with established corporate goals. From the various ways that the leader in moving his subordinates to achieve company goals in the end must also be able to generate performance from his subordinates. Indirectly leadership style of a leader participate determine the formation of employee performance. The better one's leadership style towards subordinates, the higher the performance of the subordinate.

The influence of Competency toward Employee Performance Research conducted by Ismail and Abidin (2010), explains that competence has a significant effect on performance. Employee competence is the most influential factor followed by other human capital such as work experience and education level. Wang (2007), in his research also explains the competence and performance of each other has a positive relationship. The interaction of core competencies, such as levels and educational background, work experience, and trainings that have been followed, may reveal interference effects on employee performance. Similarly, in earlier similar studies, although respondents based on different occupations in the corporate industry also found evidence that employee competence had a positive effect on their performance. From some research results can be concluded that the competence is the driving force of a performance and determinant of high quality of a performance, and th quality of performance of the implementation of certain activities. Competence is the dominant variable that affect performance. A person must have competence in doing every field that will be done. Competence in the form of understanding and experience of each employee to the job given, so the higher the employee's competence then the employee's performance is expected to be better. The Influence of Working Motivation toward Employee Performance Giving the right work motivation will be very helpful in the ongoing employment of employees and the results achieved. Motivation is a state of mental and mental attitude that gives human energy, encouragement or direction, behavior towards achieving satisfaction. Employee motivation will increase the skill, experience, and earnestness of work, so as to achieve maximum work result. Giving responsibilities, challenges, direction and opportunities will motivate employees to excel. Therefore the importance of providing employee motivation will be very helpful in solving the problems faced by employees so that will be more excited and confident. In research Primanda and Azzuhri (2015), showed that work motivation significantly influence employee performance. While from research of

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Puspitasari (2014), there is a negative and significant influence of work motivation on employee performance at Tax Office Pratama Magelang. So, in essence motivation give positive effect to improvement of employee performance. With the motivation of employees are expected to be even more diligent to get the quality and quantity desired by the Company, so that employee performance can be maximized. When a person is motivated, he will try to do everything in his power to realize what he wants. But not necessarily hard efforts that will produce the expected productivity, if not channeled in the direction desired company. So companies should set job standards and add factors to the performance of an employee in improving performance. In order to really be able to assess employees optimally in improving employee performance. The Influence of Situational Leadership, Competency Toward Employee Performance The research conducted by Wahyuning (2016), showed that situational leadership style can improve employee performance. Besides, it is also situational leadership style able to increase employee competence which ultimately employee competence can improve employee performance. Thus the competence of employees mediate partially influence the leadership style in improving employee performance. So from the description of previous research can be concluded that the leadership style and improvement of competence in essence aims to encourage job passion, job satisfaction, and high employee work productivity, in order to achieve maximum organizational goals. Without leadership, the relationship between individual goals and organizational goals may be chaos. An effective leader is not only shown by the amount of power held and how to use it, but is shown by the leader's attention to the improvement of subordinate ability, subordinate welfare, commitment to subordinate growth to improve performance.

Figure:2.Research Paradigm

Hypothesis The hypothesis is a temporary assumption, where the truth must be reexamined. Based on the framework then, the researcher can put forward hypothesis (interim allegation) as follows: Hypothesys 1:Situational leadership and competence simultaneously have a positive effect on the

employee's motivation to work under the Well Intervention division of Pertamina Hulu Mahakam.

Hypothesis 2: Situational leadership and competence are partially positively influenced by the employee's working motivation working under the Well Intervention division of Pertamina Hulu Mahakam.

Hypothesis 3: Situational leadership and competence simultaneously have a positive effect on the performance of Contractor employees (Service Company) working under the Well Intervention division of Pertamina Hulu Mahakam.

Hypothesis 4:Situational leadership and competencies partially positively affect the performance of Contractor employees (Service Company) working under the Well Intervention division of Pertamina Hulu Mahakam.

Hypothesis 5: Work motivation positively affects the performance of Contractor employees (Service

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Company) working under Well Intervention division of Pertamina Hulu Mahakam. Hypothesis 6:Situational leadership, competence and motivation have a positive effect on the

performance of the Contractor (Service Company) working under the Well Intervention division of Pertamina Hulu Mahakam.

Research Methodology In this research, the dataare primary data and secondary data. According to Sekaran (2000), also

distinguishes the type of sampling technique which is divided into 2 (two) kinds, namely: probability and non-probability sampling. In this research, the researcher uses probability sampling with proportional stratified random sampling method which means a sampling method where the population element is divided into groups called strata and disproportional stratified random sampling that is determining the number of samples, if the population is stratified but not proportional, in terms of this is especially the employees because there are only 4 employee then 4 employees are taken as samples. Population according to Sugiyono (2010) is a generalization region consisting of objects / subjects that have certain qualities and characteristics set by researchers to be studied and then drawn conclusions. The population in this study are 437 employees including employees from Elnusa, Schlumberger, Nesitor, Adimas and Baker. While the sample is part of that population. In sampling the research should be careful and meet the rules in the sample selection. However, the quality of a study is not solely determined by the size of the sample, but by the solidity of the theoretical foundations, the research design and implementation and processing. The sampling technique to be used is the proportional stratified random sampling method that is a random sample selection where it can be done by first classifying a population into sub-sub populations. The sample then are selected from each sub-population by the lottery method. The lottery method is a simple random sampling method whose process is done by using a draw pattern. The result of the sweepstakes is the selected sample. Determination of sample size in this study was calculated based on the opinion of Solvin, where the sampling error rate of 5%, with the following formula:

𝑛𝑛 = 4371+437(0,05)2 = 208,84 ~ (Round to 210 Employee)

So the minimum sample size to be taken in this study are 210 employees of the Contractor

(Service Company) under the Well Intervention Division of Pertamina Hulu Mahakam. The sample is then allocated proportionally to the sub-populations based on the following formula:

ni = Ni x n N ni: the number of stratum sample (sub population) number i = the number of each strata (sub

population) Ni :the number on stratum (sub population) number i = the number in each sub population N : the total number of population = the number on entire sub population = 437 N = the numer of sample = 210

The population in this study is all employees of the Contractor (Service Company) under

the Well Intervention Division of Pertamina Hulu Mahakam. The allocation of sample calculations from each strata (sub-population) can be seen in table 3 follows:

Table 3.

SAMPLING CALCULATION

No Company Name Number of Employee

Calculation Number of Sample

(%)

Number of Sampel

(rounded)

1. Elnusa 150 (150/437)x 209 71,739 72

2. Nesitor 125 (125/437)x 209 59,782 60

3. Schlumberger 95 (95/437)x 209 45,434 45 4. Adimas 45 (45/437)x 209 21,521 22

21 NeNn

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5. Baker 22 (22/437)x 209 10,521 11 Total 437 208,997 210

Source: data managed by researcher After allocation, the total samples to be collected are 210 employees with locations at Well Intervention Barge operating in Tambora, Tunu and Handil Site, Pertamina Hulu Mahakam working area, East Kalimantan.

I. Discussion And Result The Influence Simultaneously affect Situational Leadership and Competency toward Employee Performance

The result of Linier Regression analysis shows that the variables of situational leadership and competence simultaneously affect the work motivation of contractor employees who work under the division of Well Intervention Pertamina Hulu Mahakam (Based on the result of F test on regression equation 1 obtained F count> F table). This can be interpreted, if the better implementation of situational leadership and employee competence level then the employee's work motivation will also be high. Conversely, the worse the implementation of situational leadership and the level of employee competence hence employee work motivation will also fall. Based on regression equation 1, the value of Adjusted R2 is 0,247 (24,7%). It shows that the variation of independent variable used in the model (situational leadership and competence) is able to explain 24,7% variation of work motivation variable and the rest is explained by other variables not included in this research model. This shows that all the indicators that are inside the variable have been done well as expected. The results showed a positive or influential effect on work motivation because all indicators have been applied well, so it has a good effect on employee work motivation. Providing support with the implementation of situational leadership as well as continuous improvement of employee competence will motivate employees both intrinsically and extrinsically. The results of this study are in line with previous research by Rahman et al (2014), indicating that employee competence is a manifestation of all capabilities possessed. Employees will be motivated if the competencies held in accordance with what is expected by the company. Situational leadership and competence are found to be related to employee work motivation. The better the leadership factor, the higher the performance of employees can be expected. The higher the competence of employees, the higher the performance of employees.

The Influence of Situational Leadership Toward Working Motivation of Employee

The result of linear regression analysis shows that the variable of influence of situational leadership on work motivation based on t test in regression 1 obtained tcount <ttable (1,753 <1,971), so Ho is accepted. So it can be concluded that situational leadership does not affect the work motivation of contractor employees (Service Company) working under the division Well Pertamina Mahakam. In this research in situational leadership does not affect the growth of employee motivation. Employees need motivations that come from outside himself, but in this case the motivation does not arise from a leader. Leaders need to increase their performances to foster motivation for the employees they lead. Leaders in motivating employees should be able to set an example, create a comfortable working environment, provide employee opportunities to develop a career, allowing employees to improve morale, which is the driving force to motivate employees in directing all the potential they have. The result of this study is not in line with previous research conducted by Syamsuddin (2016) and Sinollah (2014), where both research results show that situational leadership style instruction, consultation and delegation models have a positive and significant influence on employee work motivation. There are many other factors that influence the motivation of the employees of the Service Company who work under the Well Intervention division of Pertamina Hulu Mahakam. One is the application of high standards of occupational health and safety, so that employees are always motivated to work safely, following all rules and procedures that have been established with the presence or absence of supervisory leaders / supervisors. This makes a leader not a dominant factor that affects employee motivation. The Influence of Competency Toward Working Motivation of Employee

The result of linear regression analysis showed that the variable of competence influence on work motivation based on t test in regression 1 obtained tcount> ttable (6,276> 1,971), so Ho is rejected. The value of t count is positive, it means that the positive effect of increasing competence will increase the motivation of employee contractor (Service Company) working under Well Intervention division of Pertamina Hulu Mahakam. Employee competence is a manifestation of all capabilities possessed. Employees will be motivated if the competencies held in accordance with what is expected by the company. These competencies will have an impact on the level of confidence in work. Employees with high competence will tend to show their ability through achievement in the company. This research

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shows that competence has a significant effect on employee work motivation. The result of this research is in line with research of Ngatemin and Arumwanti (2013), competence is a thing which is related with ability, knowledge / insight, and attitude which become a guide in doing job responsibilities done by employee. With the competencies of employees will bring motivation for career improvement and employee performance. The Influence Simnultaneously of Situational Leadership and Competency Toward Employee Performance

The result of Linier Regression analysis shows that the variables of situational leadership and competence simultaneously affect the performance of contractor employees (Service Company) working under the division of Well Intervention Pertamina Hulu Mahakam (Based on the results of F test on regression equation 2 obtained F count> F table). Thus Ha is accepted. This means that the better the implementation of situational leadership and employee competence level then the employee performance will also be high. Conversely, the less good the implementation of situational leadership and employee competence level then the employee performance will also decrease. For regression equation 2 the value of Adjusted R2 is 0,189 (18,9%), this indicates that the variation of independent variable used in the model (situational leadership and competence) is able to explain 18.9% variation of employee performance variable, and the rest is explained by other variables not included in this research model. Situational leadership and competence enhancement are essentially aimed at encouraging workplace passion, job satisfaction, and high employee productivity, in order to achieve maximum organizational goals. Without leadership, the relationship between individual goals and organizational goals may be chaos. An effective leader is not only shown by the amount of power held and how to use it, but is shown by the leader's attention to the improvement of subordinate ability, subordinate welfare, commitment to subordinate growth to improve performance. This study shows that situational leadership and competence have a significant effect on employee performance. The results of this study are in line with research conducted by Wahyuning (2016) where situational leadership style can improve employee performance. Besides, it is also situational leadership style able to increase employee competence which ultimately employee competence can improve employee performance.

The Influence of Situational Leadrship Toward Employee Performance

The result of linear regression analysis shows that the variable of influence of situational leadership on employee performance based on t test on regression 2 obtained tcount <ttable (1,450 <1,971), so Ho is accepted. Thus situational leadership has no effect on the performance of contractor employees (Service Company) working under the Well Intervention division of Pertamina Hulu Mahakam. Leadership is initially identified as the focal point of the process taking place within the group. In addition, leadership is regarded as an art to create compliance, but more recently, leadership is as an influence caused by differences in roles or as an initial driving force of working relationships. But in the midst of an increasingly complex and progressive era with a better level of intelligence required the existence of a more democratic leadership figure that is expected to increase the effectiveness and productivity of subordinates. This is due to the direct involvement of its staff in dealing with a problem or work independently. In this study, situational leadership styles consisting of instructional behavior, consultation behavior, participation behavior and delegation behavior do not contribute significantly to employee performance. The role of leadership style does not become necessary to harmonize the various needs and also to create a conducive working situation. The results of this study are not in line with previous research done by Rahman et al (2014) which shows that the hypothesis states that there is a significant influence of situational leadership on employee performance is proven or acceptable. The work culture formed within the Well Intervention division of Pertamina Hulu Mahakam is a work culture that emphasizes the principle of compliance with all regulations that have been established in the corporate environment. There are many binding rules and instructions for employees in the work, whether it is the Company Rule, Standard Operating Procedure, Site Standing Instruction, and Job Risk Assessment. All such regulations shall be complied with inherent sanctions if a violation is committed. So the role of a leader becomes insignificant in improving employee performance. Whether or not a leader is supervising, employees will continue to work in accordance with the work program and rules that have been set to achieve the expected results of the work. The Influence of Competency toward Employee Performance

The result of linear regression analysis shows that the variable of competence influence to employee performance based on t test on regression obtained tcount> ttable (5,354> 1,971), so Ho is rejected. So it can be concluded that the competence affects the performance of contractor employees

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(Service Company) working under the division Well Intervention Pertamina Hulu Mahakam. Thus competence is part of a person's personality deep enough and permanent. Competence is not a temporary possession of capability. Competence can be therefore used to predict a person's behavior in various situations and work tasks. Similarly competencies can actually be used to predict a person's performance and can show who works better than others based on certain or standards. Employee performance is the result achieved by employees in the implementation of a job given to him either in quantity or quality through a procedure that focuses on the objectives to be achieved and with the fulfillment of implementation standards. To achieve good performance, the most dominant element is human resources, although the planning has been well and neatly arranged but if people or personnel who implement not qualified and do not have high morale, then the plan has been prepared will be in vain . Performance achieved by employees is a very important thing in ensuring the survival of the organization. The increasingly complex business demands today require the company's agility in business. Continuous improvement in competence is needed, not just answering the changes, but also spawning innovations to always be at the forefront. This study shows that competence has a significant effect on employee performance. The results of this study are in line with the research of Ismail and Abidin (2010) which explains that competence has a significant effect on performance. Employee competence is the most influential factor followed by other human capital such as work experience and education level. Wang (2007), in his research also explains the competence and performance of each other has a positive relationship. The Influence of Working Motivation Toward Employee Performance

The result of linear regression analysis showed that the variable of competence influence on employee performance based on t test on regression 3 has tcount> ttable (5,787> 1,972), so Ho is rejected. So it can be concluded that the motivation of work affect the performance of contractor employees (Service Company) who work under the division Well Intervention Pertamina Hulu Mahakam. In this case if the work motivation is increasing, it will increase also the performance of employees. Employee motivation in a company can be considered simple but can also be a complex problem, because basically human beings are easy to be motivated by giving what ithey wants. When a person is motivated, he will try to do everything in his power to realize what he wants. Previous research on work motivation by research Primanda and Azzuhri (2015) also said that there is a positive and significant influence between work motivation and employee performance. It is also said that motivation is the dominant factor affecting employee performance. Motivation work with employee performance is also directly proportional, meaning that the higher the motivation of employees in work then the resulting performance is also higher. The Simultaneously Influence of Situational Leadership and Competency toward Employee Performance

The result of linear regression analysis showed that the variable of competence influence to employee performance based on F test result on regression equation 3 obtained F count> F table (30,774> 2,648), so Ho is rejected. So it can be concluded that the situational leadership, competence, and motivation work simultaneously affect the performance of contractor employees (Service Company) working under the division Well Well Pertamina Pertamina Hulu Mahakam. For regression equation 3 obtained Adjusted R2 value of 0.299 (29.9%), this shows that the variation of independent variables used in the model (situational leadership, competence, and work motivation) is able to explain 29.9% variation in employee performance variables, and the remainder is explained by other variables not included in this research model. Upstream oil and gas industry is an industry that has high capital and high risk properties. So it should be managed by professional leaders and workers with high technical talents and mastery, committed to building research and development. Be able to compete on a regional or international scale, drive growth through investment, build cost conscious culture, and reward performance. A leader must be able to create added value with a commercial orientation, interpersonal relationships and making decisions based on sound business principles. Leadership has an important role in the organization, where the leader is tasked to supervise and control the course of an organization. So the role of leaders here is very crucial that ensures and ensures the organization runs well and achieves targeted goals. In general, every leader always expects and strives that his subordinates have the ability and willingness to carry out and complete the tasks carried well, in order to fit certain targets that have been set. Performance are measurable actions or executions of tasks. Performance is a benchmark for how well an employee performs the tasks and work that the company is causing. Situational leadership, competence and motivation are some of the variables that influence the performance of contractor employees (Service Company) working under the Well Intervention division of Pertamina Hulu Mahakam. This study shows that situational leadership, competence and

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motivation have a significant effect on employee performance. The results of this study are in line with research conducted by Wahyuning (2016). The results show that situational leadership style, competence and motivation can improve employee performance.

Conclusion And Implication

Based on research results the research conclucion can be explain as follow: a. Situational leadership and competence simultaneously affect the work motivation of

contractor employees (Service Company) working under the division of Well Intervention Pertamina Hulu Mahakam.

b. Situational leadership partially has no effect on work motivation of contractor employees (Service Company) working under the division of Well Intervention Pertamina Hulu Mahakam.

c. Situational Leadership and Competence simultaneously have a positive effect on the performance of contractor employees (Service Company) working under the Well Intervention division of Pertamina Hulu Mahakam.

d. Situational leadership partially has no effect on the performance of contractor employees (Service Company) working under the division of Well Intervention Pertamina Hulu Mahakam.

e. Work motivation affects the performance of contractor employees (Service Company) working under the division of Well Intervention Pertamina Hulu Mahakam.

f. Situational Leadership, Competence and Work Motivation simultaneously affect the Performance of Contractor Employees (Service Company) working under Well Intervention Division of Pertamina Hulu Mahakam.

Implications

1. Social Impact With this research, it is expected to be able to help the community through Corporate Social Responsibilty means with the performance of employees meninkat earnings recall the impact of corporate profits increased, and Corporate social Responsibilty also increased.

2. Economic Impact With this research, it is expected that the employee performance will increase, the opinion will also increase, it can be seen from the impact of the economy will be stable, with stable economic field, the people are expected to be stable and the income per capita of society will increase.

3. Environment Impact From the results of this study is expected, that with increased employee performance then the environment will be more organized and the security will be stable.

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