The Influence of Job Placement and Human Relations with Age as a Moderating Variable on Employee Performance of PT. KSA

The Influence of Job Placement and Human Relations with Age as a Moderating Variable on Employee Performance of PT. KSA

Mavirly Guviyun, Netty Laura, Ktut Silvanita

Universitas Kristen Indonesia

DOI: https://dx.doi.org/10.47772/IJRISS.2024.814MG009

Received: 19 October 2024; Accepted: 24 October 2024; Published: 27 November 2024

ABSTRACT

The purpose of this research is to examine the impact of employment, human relations, and age on employee performance. The population for this study consists of employees at PT. KSA, and a probabilistic sampling technique (simple random sampling) was employed, resulting in a sample size of 55 individuals. The data analysis utilized multiple linear regression.

The findings reveal the significance values of the influences of employment, human relations, and age on employee performance, which are 0.003, 0.006, 0.059, 0.277, and 0.862, respectively. The significance values for employment and human relations are less than 0.05, indicating a statistically significant impact on employee performance. In contrast, age, as a moderating variable, along with employment and human relations moderated by age, show significance values greater than 0.05.

These results suggest that while recruitment and human relations significantly influence employee performance, age does not moderate the effects of employment and human relations. This is further evidenced by the age-adjusted significance values for employment and human relations, which are 0.277 and 0.862, respectively. Both values exceed 0.05, with regression coefficients of -0.048 and -0.010, respectively. Thus, we conclude that age does not have a significant effect and may even diminish the influence of employment and human relations on the performance of PT. KSA employees.

Keywords: Employment, Human Relations, Age, Employee Performance

INTRODUCTION

Many contemporary companies are strategically leveraging marketing strategies to expand their business reach and enhance visibility across various regions. An effective marketing approach often entails establishing additional branches or units in cities with high growth potential. Human resources (HR) play a critical role in the functionality of a company, as successful operations hinge on the active participation of employees. The effectiveness of HR management directly influences the success of the organization. This, in turn, impacts the employee recruitment process, particularly in determining placements across different branches or units of the company. To achieve their goals, organizations consistently strive to enhance employee performance. High performance from employees, characterized by effective and efficient work, is essential for meeting performance objectives. Consequently, companies implement a variety of strategies, including targeted work placement and ongoing training, to foster employee performance and ensure alignment with corporate goals (Boxall & Purcell (2016).

According to Gomes (2013), job placement is one of the most important functions in human resource management. Whether a person is appropriately placed in a particular position depends on the placement. If the placement function is not carried out well, it will automatically have fatal consequences for achieving organizational goals. According to Mathias and Jackson (2018), job placement refers to assigning individuals to positions that align with their skills and competencies. The degree to which an employee fits their job role significantly influences both the quantity and quality of their work. Proper job placement ensures that employees are not only qualified for their positions but also motivated and engaged, leading to enhanced overall performance and productivity within the organization.

Regarding job placement, humans, who cannot be denied as social creatures, always have attachments to others. The term human relations emerged, which means interaction between a person and other people, either in a work situation or in a work organization. Every day, like it or not, one employee has to meet another employee. So how important it is to maintain good relations between employees because this can affect the conditions and environment in carrying out work and building strong teamwork (Pradiksa, 2021). Well-motivated employees have a greater impact on the effectiveness of their organization. When an employee is well motivated, it shows that the company is working effectively and this is the key to the success of workers in advancing the company/institution/government they lead (Nur, 2019). So a common thread can be drawn, that human relations of leaders in a company is something that is quite vital in achieving company goals.

The focus of this research is job placement, which frequently does not align with employees’ skills or abilities. This misalignment between employees’ educational backgrounds and their roles within a company hampers their ability to improve performance. During observations at PT. KSA, researchers identified significant issues in the job placement process. The company has not effectively implemented job placement strategies, resulting in several employees being assigned roles that do not correspond to their qualifications. For example, a finance officer position typically requires candidates to have a high school/vocational education with a major in Social Sciences, or a bachelor’s degree in Accounting or Management.

However, some employees in this role possess high school/vocational backgrounds in science or bachelor’s degrees in Indonesian Literature. Consequently, these employees struggle to perform their duties effectively, which limits their competitiveness against colleagues with degrees in Management. This situation is viewed by researchers as a critical issue that warrants further investigation, aiming to enhance understanding of job placement and its relationship with human relations. Such insights are vital for company leaders striving to achieve organizational goals.

As social creatures, humans possess a variety of relative characteristics, each individual exhibiting unique feelings and thoughts. In this context, the researcher aims to examine age as a moderating variable influencing employee performance. This interest has led to the formulation of the research titled “The Effect of Job Placement and Human Relations with Age as a Moderating Variable on Employee Performance at PT. KSA.”

LITERATURE REVIEW

Employee Performance

According to Macau et al. (2021), achieving optimal performance is a primary goal for management in every organization. However, an individual’s skills and expertise are not always readily observable, making it essential to evaluate them based on the quality and quantity of their work in relation to organizational job specifications. Objective performance assessments are crucial as they provide valuable insights to managers regarding employee needs, promotion eligibility, and behavioral observations. In this context, performance encompasses the various tasks performed by employees.

Performance” is indeed a key metric in evaluating employees in organizations, where it reflects both individual contributions and collective achievements. Defined as the level of success in completing tasks within a designated period, performance aligns with achieving specific goals tied to an employee’s role. According to Armstrong (2014), performance evaluation considers whether an employee meets expectations through quantitative or qualitative measures such as productivity, quality of output, and goal attainment.

Moreover, organizational performance extends beyond individuals, encompassing team achievements and overall success metrics, underscoring the impact of collaboration and cohesion in the workplace (Schermerhorn et al., 2010). Evaluating performance, therefore, serves not only as a personal benchmark but as an organizational asset that aligns individual goals with the broader mission, enhancing both individual and collective efficacy within the organization.

As stated by Mangkunegara (2018), performance refers to the results of an individual’s work in both quality and quantity, accomplished while fulfilling their designated responsibilities. Likewise, Siagian (2015) defines performance as an individual’s comprehensive capacity to effectively pursue work objectives and diverse targets, achieving optimal outcomes with a relatively minimal ratio of effort compared to the results obtained. Muaja et al. (2017) have also successfully demonstrated a positive and significant influence of job placement on employee performance.

According to Indahingwati and Nugroho (2020), employee performance can be assessed using three indicators: discipline, responsibility, and teamwork. These indicators can be elaborated as follows:

1. Discipline
2. Responsibility
3. Teamwork

From the explanations mentioned above, it can be concluded that employee performance is the outcome or achievement of individuals within an organization aimed at attaining the company’s objectives. Employee performance is closely linked to the overall performance of the organization. The successful achievement of organizational goals inherently depends on the effective utilization of available resources and the active involvement of employees. Employees play a crucial role in driving and executing various organizational initiatives to reach these objectives.

Job Placement

Job placement, also known as placement, is the action taken by a company or organization to assign employees to positions that are in line with their capabilities, expertise, and knowledge, ensuring a match with the requirements of the roles within the company. According to Muharram (2023), employees should possess the capacity to take accountability for any errors that might arise while executing their assigned tasks. The objective is to cultivate job satisfaction and attain optimal work performance. Job placement entails positioning an individual in a suitable job role, and the degree to which an employee fits their role can significantly impact the quantity and quality of the work they produce.

According to Hakim (2019), employee job placement is a step after the selection process, where prospective employees who pass the selection are placed in positions or jobs that require it, while being given appropriate authority. Apart from that, according to Siagian (2016), placement is the final stage of the selection process. Elbadiansyah (2019) defines work placement as a policy taken by the head of an organization, company, or personnel department to determine whether an employee is still suitable or not suitable to be placed in a certain position or title. Based on the above understanding, it can be concluded that the placement of employees, both new and existing employees, in the right positions and must match the employee’s qualifications with the requirements of the position, an employee must also be able to take responsibility for all risks for the tasks assigned to him. Indicators that influence job placement according to Rivai and Sagala (2011) are explained as follows:

1. Education
2. Job skills
3. Work experience
4. Physical and mental health

Human Relation

Human relations is a focus on psychological aspects which include nature, character, behavior, personality and other psychological dimensions that humans have towards achieving happiness and satisfaction (Lewin, 1947).

According to Hasibuan (2014), Human relations includes harmonious relationships that are built through individual awareness and readiness to combine personal desires for the common good. Nur (2015) states that human relations is an element in human resource management that facilitates communication between people, promotes mutual understanding, and forms mutually understanding attitudes, opinions or behavior in carrying out tasks.

In this context, human relations are essential for meeting employees’ physical and psychological needs, enhancing work enthusiasm and productivity. Leaders play a crucial role by motivating their teams and fostering unity. Effective human relations include open communication and supportive gestures, ensuring employees feel valued and connected. This perspective views employees as individuals whose interactions significantly influence production outcomes, promoting motivation and a sense of belonging within the organization. Ultimately, a strong emphasis on human relations helps create a more engaged and productive workforce (Drucker, 1994).

According to Istijanto in (Syajidin, 2017) human relationship indicators include the following:

1. Tolerance
2. Able to accept reprimands
3. Friendly attitude
4. Be honest at work
5. Able to work together
6. Communicate with mutual respect

Age

The productive phase of an individual in the workforce is typically between the ages of 20 to 40. During this period, individuals are considered highly productive, as those under 20 are still developing necessary skills, while those nearing 40 may start to experience a decline in physical capabilities essential for production roles (Boxall & Purcell, 2016). This underscores the importance of aligning age with job responsibilities to maximize productivity within an organization.

The working-age population is defined as individuals aged 15 and older, according to Indonesian Law No. 13 of 2003. A “worker” is anyone capable of producing goods or services for personal or communal needs. In Indonesia, the age range for workers is typically classified from 15 to 64 years, although some argue that the appropriate starting age for entering the workforce is 17. Labor force participation increases with age, peaking before declining as individuals approach retirement, largely due to diminishing physical capabilities.

According to Lasut (2017), age is the time span from when an individual is born until their birthday. As one gets older, a person’s level of maturity and abilities will increase, affecting the way they think and work. In society’s view, older individuals are considered to have a higher level of maturity than younger ones. This is seen as the accumulation of experience and maturity of the soul.

At PT. KSA, the age range of the workforce ranges from 17 to 55 years, considered to be the age range that has productive performance for the workforce. Individuals under the age of 17 generally do not have sufficiently mature skills and are still in the educational process. Meanwhile, individuals aged between 36 and 50 years are considered to have a lot of work experience and sufficient years of service, so they are able to provide good performance for the company. Here are some age indicators:

1. Duration and work experience
2. Ability and expertise
3. Work experience

Hypothesis

A hypothesis is an initial conclusion that requires refinement through empirical testing and data analysis to validate its accuracy. Given the background problem description provided earlier, the author is able to propose a hypothesis, which is:

1. Job Placement (X1)

Ho: Job Placement has a significant effect on employee performance at PT. KSA

H1: Job Placement has no significant effect on employee performance at PT. KSA

2. Human Relation (X2)

Ho: Human Relations has a significant effect on employee performance at PT. KSA

H1: Human Relations has no significant effect on employee performance at PT. KSA

3. Age (Z)

Ho: Age strengthens the influence of job placement on work performance at PT. KSA

H1: Age has no significant effect on job placement at PT. KSA

RESEARCH METHOD

The population refers to a defined group that includes individuals or subjects possessing specific qualities and attributes, as identified by researchers for study and subsequent conclusions (Sugiyono, 2016: 80). In this particular study, the population comprises all employees of PT. KSA, with 60 employees.

A sample represents a portion of the population characterized by specific features. Once the target population is identified, the subsequent step involves selecting an appropriate sampling technique and determining the sample size. Questionnaires were distributed to 60 individuals within the population, but only 55 samples were completed and returned within the stipulated time frame. Consequently, this research utilized 55 samples from employees at PT. KSA.

RESULTS AND DISCUSSION

General description of the research object

PT. KSA was established in 2008 as a company focused on oil palm agribusiness. Situated in West Kalimantan, the company’s establishment commenced in 2010. Since its inception, PT. KSA has remained committed to developing a plantation business that adheres to legal regulations, prioritizes environmental sustainability, and contributes value and advantages to the surrounding community. These three aspects are essential for establishing a robust partnership between the company and society, aiming for a mutually beneficial collaboration.

PT. KSA initiated its planting efforts in 2010 within one of its oil palm plantations in West Kalimantan, coinciding with the launch of the PT training center for garden assistants. Deliberately, PT. KSA opted for a modest-sized garden, aligning with the company’s principle that a successful plantation business model involves ownership by farmers and the local community. Private companies like PT. KSA focus on factories and industrial operations. Consequently, the company maintains a close partnership with farmers.

In 2015, PT. KSA began acquiring several palm oil companies, establishing a corporate value known as SENYUM DARI HATI. This acquisition continued in 2017, and PT. KSA now participates in local and international palm oil trade, primarily exporting palm oil, castor oil, spices, and essential oils, while focusing on local markets for sugar, cloves, and tobacco. The company caters to a diverse range of clients.

The company achieved sustainable growth from 2013 to 2017 by optimizing land through strategic planting. Subsequently, in the period from 2018 to 2022, the company aimed to capitalize on the developed commodities to generate revenue and profits. In 2013, the sales of PT. KSA amounted to IDR 90.9 billion, experiencing a significant increase to IDR 2.01 trillion by 2017. It’s noteworthy that the company’s revenue doesn’t solely rely on palm oil; thus, by 2022, palm oil’s contribution is projected to be 58%, with the remaining 42% attributed to other commodities. Presently, PT. KSA has allocated 75 thousand hectares for oil palm, 14.1 thousand hectares for sugar cane, 3,000 hectares for cloves, and 2,700 hectares for castor oil plants.

Characteristics of Respondents

In this research, 55 participants were surveyed by distributing questionnaires to all employees of PT. KSA in Palmerah, West Jakarta. The researcher established specific criteria for selection, including individuals who have been employed at PT. KSA for a minimum of one year, aged between 17 and 54 years, and possess at least a high school diploma or an equivalent qualification.

It’s worth noting that the respondents included 15 males and 40 females, with the largest age group being 21-25 years. The data showed that 39 respondents (70.9%) had been employed for 1-2 years, 11 respondents (20%) for 2-5 years, and 5 respondents (9.1%) for over 5 years. The majority of respondents had tenure of 1-2 years with the company.

Descriptive Statistics

Table 1 Descriptive Statistics Test Results

Source: Own calculation

Based on Table 1 it is evident that:

1. In the Job Placement variable (X1) as the independent variable, the mean value is 33.34 with a standard deviation of 4.33. The minimum value is 23.00 and the maximum value is 40.00. In the context of job placement, literature indicates that effective placement is crucial for enhancing employee satisfaction and productivity. According to Boxall and Purcell (2016), proper job placement aligns individual skills with organizational needs, leading to better performance outcomes. Additionally, research by Mathias and Jackson (2018) emphasizes that fitting employees into roles that match their competencies can significantly influence the overall work environment and job satisfaction. Hence, understanding job placement metrics, like the mean and standard deviation, can provide valuable insights for organizational improvements.
2. In the Human Relation variable (X2) as the independent variable, the mean value is 25.92 with a standard deviation of 3.07. The minimum value is 18.00 and the maximum value is 30.00. This suggests that the responses regarding human relations among employees are relatively clustered around the mean, indicating a generally positive perception of human relations within the organization.
3. Moving on to the Age variable (Z) as the intervening variable, it has a mean value of 11.18 with a standard deviation of 2.10. The minimum value is 6.00 and the maximum value is 15.00. This indicates a varied age distribution among respondents, which may influence their performance and engagement within the organization.
4. As for the Employee Performance variable (Y) as the dependent variable, the mean value is 21.25 with a standard deviation of 2.92. The minimum value is 12.00 and the maximum value is 25.00. This suggests that while there is a reasonable level of performance among employees, there are variations that could indicate differing levels of engagement or effectiveness in their roles. Exploring factors influencing performance, such as job placement and human relations, could provide valuable insights into improving overall employee output and satisfaction.

Moderated Regression Analysis (MRA) test

Table 2 Moderated Regression Analysis Coefficient Test Results

Source: Own calculation

Drawing from the information presented in Table 2, the outcomes of hypothesis testing through multiple linear regression enable an analysis of the regression model in the subsequent manner:

Y = 16.165 + 0.595X₁ + 0.449X₂ + 0.410Z + -0.048X1Z + e

To elaborate further:

a. The constant value of 16.165 represents the baseline employee performance (Y) when keeping variables X1, X2, Z, X1*Z, and X2*Z constant, indicating it stays at 16.165 units. This means that even without the influence of these factors, the expected performance level remains at 16.165 units, serving as a reference point for evaluating the effects of the independent variables on employee performance.

Research shows that baseline performance metrics are essential for understanding the relative impact of different variables. For instance, Organizational Behavior by Schermerhorn et al. (2010) emphasizes the importance of establishing benchmarks for performance evaluation. Similarly, Armstrong (2014) discusses how baseline metrics help organizations identify areas of improvement and assess the effectiveness of various interventions. The concept of baseline performance is also relevant in performance management frameworks, where it assists in recognizing the influence of motivational factors, team dynamics, and organizational culture (Baker, Hunt, & Andrews, 2006). Understanding these dynamics enables managers to create strategies that enhance performance beyond the established baseline, ultimately fostering a more productive work environment.

b. The coefficient value β1, 0.595, with a positive sign, signifies a positive correlation between Job Placement (X1) and employee performance (Y). This indicates that a one-unit increase in Job Placement (X1) leads to a 0.595 unit increase in employee performance (Y). Specifically, it suggests that for every one-unit increase in Job Placement, employee performance increases by 0.595 units. This relationship underscores the importance of effective job placement strategies in enhancing overall employee productivity and performance within the organization. Research supports this assertion, indicating that proper job placement aligns employee skills and interests with organizational needs, which can lead to improved job satisfaction and performance (Katz & Kahn, 1978). According to Schermerhorn et al. (2010), effective job placement not only enhances individual performance but also contributes to team cohesion and overall organizational effectiveness. Additionally, a study by Baker, Hunt, and Andrews (2006) highlights that when employees are well-placed in their roles, they are more likely to exhibit higher levels of engagement and motivation, further driving performance outcomes. This positive relationship between job placement and employee performance underscores the importance of strategic human resource practices that prioritize aligning individuals with roles that match their competencies and aspirations.

c. The coefficient value β2, 0.449, with a positive sign, indicates a positive correlation between Human Relations (X2) and employee performance (Y). This implies that a one-unit increase in Human Relations (X2) results in a 0.449 unit increase in employee performance (Y). This means that a one-unit increase in Human Relations leads to a 0.449 unit increase in employee performance. This finding emphasizes the significance of fostering strong human relations within the workplace, as they play a crucial role in enhancing employee productivity and overall organizational effectiveness. Research has shown that positive human relations contribute to a collaborative work environment, leading to improved communication, trust, and teamwork among employees (Goleman, 1998). Schermerhorn et al. (2010) emphasize that effective human relations practices can lead to greater job satisfaction, which, in turn, positively affects performance. This aligns with findings from Baker, Hunt, and Andrews (2006), who noted that strong interpersonal relationships among employees foster a culture of mutual support and motivation, driving higher levels of engagement and productivity.

Furthermore, Armstrong (2014) highlights that organizations that prioritize human relations not only see improvements in individual performance but also benefit from enhanced team dynamics, resulting in better overall performance metrics. Thus, investing in human relations strategies can be a key driver of success in any organization.

d. The coefficient value β3, 0.410, with a positive sign, demonstrates a positive correlation between Age (Z) and employee performance (Y). This suggests that a one-unit increase in Age (Z) leads to a 0.410 unit increase in employee performance (Y). This suggests that as employees gain more experience and maturity over time, their performance levels tend to improve, highlighting the importance of age and experience in enhancing productivity within the workforce. Research supports the notion that age can positively influence job performance. For instance, a study by Ng and Feldman (2010) found that older employees often exhibit higher levels of job knowledge and experience, which can translate into better performance outcomes. Similarly, Schermerhorn et al. (2010) emphasize that age often correlates with increased work-related experience, which contributes to enhanced problem-solving abilities and decision-making skills in the workplace. Moreover, a meta-analysis by Zedeck (2014) indicated that age-related experience contributes to more effective job performance, as older employees typically possess greater emotional intelligence and resilience. This highlights the role of maturity in fostering a productive work environment, as experienced employees can mentor younger colleagues and contribute to a positive organizational culture. In conclusion, recognizing the impact of age on employee performance is crucial for organizations looking to leverage the strengths of a diverse workforce, ultimately fostering an environment where experience and maturity can enhance overall productivity.

e. The coefficient value β4, -0.048, with a negative sign, indicates that Age as a moderating variable weakens the relationship between Job Placement (X1) and employee performance (Y). Specifically, a one-unit increase in Job Placement (X1) with Age as a moderating variable results in a decrease of -0.048 units in employee performance (Y). This indicates that while Job Placement positively influences performance, the effect is diminished when accounting for the age of employees, suggesting that older employees may not respond to job placement changes as effectively as younger ones. This finding aligns with research indicating that older workers may have different motivational drivers and adaptability compared to younger employees. According to Ng and Feldman (2010), older employees may prioritize job stability and may be less inclined to embrace changes in job roles or placements, potentially resulting in lower performance enhancements from such changes.

f. Additionally, Schermerhorn et al. (2010) discuss how age can affect an employee’s openness to new roles and responsibilities, suggesting that older employees might have a stronger attachment to their established roles, which could hinder their performance when faced with new job placements. Similarly, a study by Ilgen and Schneider (2014) found that the effectiveness of job placements can vary significantly across age groups, with younger employees often showing greater adaptability and responsiveness to new placements, which enhances their performance. This underscores the importance of considering age when implementing job placement strategies, as organizations may need to tailor their approaches to maximize the effectiveness of job placements for different age groups.

g. In the moderation variable testing, the significance values for the influence of Job Placement, Human Relation, Age, and Job Placement x Age on employee performance are 0.003, 0.006, 0.059, and 0.277, respectively. The significance values of Job Placement and Human Relation being less than 0.05 indicate a significant impact on employee performance. However, Age as a moderating variable and Job Placement moderated by age do not significantly affect employee performance, as their significance values exceed 0.05. This implies that Job Placement and Human Relation significantly affect Employee Performance, while Age does not, and Job Placement moderated by age also does not significantly affect Employee Performance. This suggests that only Job Placement and Human Relations are crucial for enhancing employee performance. This finding suggests that while Job Placement and Human Relations are crucial for enhancing employee performance, Age does not play a significant moderating role in this relationship. Research supports these conclusions, indicating that effective job placement and positive interpersonal relationships within the workplace are key drivers of performance. According to Schermerhorn et al. (2010), strong human relations contribute to increased job satisfaction and, subsequently, higher performance levels. Similarly, Armstrong (2014) emphasizes that aligning job roles with employee strengths through effective placement strategies is vital for maximizing productivity. Moreover, the lack of significant effects of Age and the interaction of Job Placement moderated by Age highlights the importance of focusing on workplace dynamics rather than solely relying on age as a factor in performance outcomes. Studies have shown that while experience can benefit performance, it may not always translate into adaptability in changing job roles, particularly among older employees (Ng & Feldman, 2010). In summary, organizations should prioritize enhancing Job Placement and Human Relations to boost employee performance, as these factors have a statistically significant impact, while the influence of Age as a moderating variable appears to be negligible.

CONCLUSIONS

Based on the research results presented above, the researcher draws the following conclusions:

1. The Multiple Regression Analysis (MRA) results indicate that Job Placement has a significant and positive impact on employee performance. This implies that the better the job placement provided, the higher the employee performance. This is substantiated by a significance value of 0.003, lower than 0.05, and a regression coefficient of 0.595. Therefore, it can be concluded that job placement significantly and positively affects the performance of employees at PT. KSA.
2. The Multiple Regression Analysis (MRA) results show that Human Relation significantly and positively affects employee performance. This means that better human relations lead to an increase in employee performance. This is evidenced by a significance value of 0.006, lower than 0.05, and a regression coefficient of 0.449. Hence, it can be concluded that human relations have a significant and positive impact on the performance of employees at PT. KSA.
3. The Multiple Regression Analysis (MRA) results indicate that Age does not moderate the influence of job placement on the performance of employees at PT. KSA. This is supported by the significance value of job placement moderated by age, which is 0.277, higher than 0.05, and a regression coefficient of -0.048. Thus, it can be inferred that age does not significantly moderate and, in fact, decreases the impact of job placement on the performance of employees at PT. KSA.

Suggestions

It is suggested that PT. KSA pay more attention to the implementation of job placement and human relations while still providing an effective and efficient contribution to improving employee performance so that they remain productive and are not affected by the increasing age of employees.

Future researchers should be able to involve other variables, both as independent variables and moderating variables, because basically there are many other aspects that can influence employee performance.

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