Analysis of the factors affecting employee productivity at the Regional Planning and Development Agency of Mimika Regency

Published: Feb 25, 2025

Abstract:

Purpose: This study aims to examine the determinants of employee productivity at the Regional Planning and Development Agency (Bappeda) in Mimika Regency. Specifically, it investigates (1) the relationship between salary and employee productivity, (2) the relationship between work relationships and employee productivity, (3) the effect of the work environment on productivity, and (4) the impact of promotion on productivity.

Research Methodology: A quantitative method using SEM-PLS correlational analysis was applied. Data were obtained via a Likert-scale questionnaire. The study conducted validity, reliability, and hypothesis testing to assess relationship strength and significance among variables, ensuring robust measurement and accurate evaluation of the proposed research model.

Results: The study found salary (X?) negatively influenced productivity, indicating the need to reassess compensation. Work relationships (X?) and environment (X?) positively affected productivity, highlighting collaboration and supportive conditions. Promotion (X?) showed no significant effect, suggesting weaknesses in promotion mechanisms requiring attention to improve organizational motivation and employee outcome.

Conclusions: Employee productivity is more strongly influenced by relational and environmental factors than salary and promotion. Therefore, organizational improvements should focus on fostering positive relationships and enhancing the physical and psychological work environments.

Limitations: This study was limited to a single regional agency, which may have affected the generalizability of the findings. Additionally, the cross-sectional design does not capture the long-term dynamics.

Contribution: This study contributes to the public sector human resource management literature by highlighting the relative importance of workplace relationships and conditions over financial and promotional factors in improving employee productivity.

Keywords:
1. Employee Productivity
2. Promotion
3. Salary
4. Work Environment
5. Work Relationships
Authors:
1 . Daud Erwin Ayamiseba
2 . Halomoan Hutajulu
3 . Elsyan R. Marlissa
How to Cite
Ayamiseba, D. E., Hutajulu, H., & Marlissa, E. R. (2025). Analysis of the factors affecting employee productivity at the Regional Planning and Development Agency of Mimika Regency. Journal of Multidisciplinary Academic Business Studies, 2(2), 113–130. https://doi.org/10.35912/jomabs.v2i2.3068

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References

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    Becker, G. S. (1993). Human Capital: A Theoretical and Empirical Analysis: The University of Chicago Press.

    Benson, A., Li, D., & Shue, K. (2019). Promotions and the Peter Principle. The Quarterly Journal of Economics, 134(4), 2085-2134. doi:https://doi.org/10.1093/qje/qjz022

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    Emmanuel, O. O. (2023). Dependency and underdevelopment in the third world countries: A Nigeria experience. Journal of Governance and Accountability Studies, 3(2), 137-155. doi:https://doi.org/10.35912/jgas.v3i2.1964

    Fadli, M. (2020). The Role Of The Regional Development Planning Agency (BAPPEDA) In The Participative Development Planning Process. Meraja journal, 3, 149-161. doi:http://dx.doi.org/10.33080/mrj.v3i2.107

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    Patrick, O. A., Chike, N., & Phina, O. N. (2022). Workplace Bullying and Performance of Employees: Manufacturing Firms Perspective in Anambra State. Annals of Human Resource Management Research, 2(2), 117-129. doi:https://doi.org/10.35912/ahrmr.v2i2.1339

    Robbins, S. P., Judge, T. A., & Vohra, N. (2019). Organizational Behaviour by Pearson 18e: Pearson Education India.

    Sadeghi, S., & Barzegari, J. (2020). Accounting in the fourth industrial revolution: Exploration of digital currency exchanges using AHP method. Annals of Management and Organization Research, 2(1), 25-40. doi:https://doi.org/10.35912/amor.v2i1.556

    Sivarajah, U., Weerakkody, V., Waller, P., Lee, H., Irani, Z., Choi, Y., . . . Glikman, Y. (2016). The role of e-participation and open data in evidence-based policy decision making in local government. Journal of Organizational Computing and Electronic Commerce, 26(1-2), 64-79. doi:https://doi.org/10.1080/10919392.2015.1125171

    Sugiyono, & Sutopo, S. (2021). Metode penelitian kuantitatif kualitatif dan R dan D. Bandung: Alfabeta.

    Todaro, M. P., & Smith, S. C. (2009). Economic development: Pearson education.

    Yeh, C., Macaluso, C., & Hershbein, B. (2022). Monopsony in the US Labor Market. American Economic Review, 112(7), 2099-2138. doi:https://doi.org/10.1257/aer.20200025

  1. Amalia, Z., & Oktavia, V. (2024). Faktor – Faktor Yang Mempengaruhi Produktivitas Karyawan Bappeda Kabupaten Jepara: Insentif, Disiplin Kerja dan Motivasi Kerja. Jurnal EMT KITA, 8, 1265-1276. doi:http://dx.doi.org/10.35870/emt.v8i4.3030
  2. Armstrong, M., & Taylor, S. (2023). Armstrong's Handbook of Human Resource Management Practice: A Guide to the Theory and Practice of People Management: Kogan Page Publishers.
  3. Azar, J., Marinescu, I., & Steinbaum, M. (2022). Labor Market Concentration. Journal of Human Resources, 57, 167-199. doi: https://doi.org/10.3368/jhr.monopsony.1218-9914R1
  4. Becker, G. S. (1993). Human Capital: A Theoretical and Empirical Analysis: The University of Chicago Press.
  5. Benson, A., Li, D., & Shue, K. (2019). Promotions and the Peter Principle. The Quarterly Journal of Economics, 134(4), 2085-2134. doi:https://doi.org/10.1093/qje/qjz022
  6. Dessler, G., & Varrkey, B. (2005). Human Resource Management, 15e: Pearson Education India.
  7. Dwiyanti, N. M. C., Luh Putu Agustini Karta, N., Cintya, N. P., & Bendesa, I. N. G. P. (2023). Strategi Pemasaran Museum Gunung Api Batur sebagai Daya Tarik Wisata Edukasi di Kabupaten Bangli. Jurnal Studi Perhotelan dan Pariwisata, 2(1), 37-45. doi:https://doi.org/10.35912/jspp.v2i1.2565
  8. Emmanuel, O. O. (2023). Dependency and underdevelopment in the third world countries: A Nigeria experience. Journal of Governance and Accountability Studies, 3(2), 137-155. doi:https://doi.org/10.35912/jgas.v3i2.1964
  9. Fadli, M. (2020). The Role Of The Regional Development Planning Agency (BAPPEDA) In The Participative Development Planning Process. Meraja journal, 3, 149-161. doi:http://dx.doi.org/10.33080/mrj.v3i2.107
  10. Ghorbani, S., & Khanachah, S. N. (2021). Providing a framework for knowledge sharing in knowledge-based organizations according to social capital indicators. Annals of Management and Organization Research, 1(4), 271-284. doi:https://doi.org/10.35912/amor.v1i4.490
  11. Ghozali, I. (2014). Structural Equation Modeling Metode Alternatif dengan Partial Least Squares (PLS).
  12. Ghozali, I., & Latan, H. (2015). Partial Least Squares Konsep Teknik dan Aplikasi dengan Program Smart PLS 3.0. Semarang: Universitas Diponegoro Semarang.
  13. Habib, L., & Mehzabin, M. A. (2024). Motivation for Knowledge Management Approach and Future Prospects: A Review of Perspectives in Bangladeshi Organisations. Annals of Human Resource Management Research, 4(2), 127-151. doi:https://doi.org/10.35912/ahrmr.v4i2.2472
  14. Hair Jr, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European business review, 26(2), 106-121.
  15. Mankiw, N. G. (2015). Principles of Economics: Cengage Learning.
  16. Manning, A. (2021). Monopsony in Labor Markets: A Review. ILR Review, 74(1), 3-26. doi:https://doi.org/10.1177/0019793920922499
  17. Manning, A., & Petrongolo, B. (2024). Monopsony in Local Labour Markets. Oxford Open Economics, 3(1), 951-958. doi:https://doi.org/10.1093/ooec/odad061
  18. North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge University.
  19. Nurjanah, S., Sadhana, K., & Sukowati, P. (2022). Study of Implementation of Policy of The Regional Development Agency in the Probolinggo Regency of Indonesia. International Journal of Advances In Scientific Research and Engineering, 08, 79-83. doi:http://dx.doi.org/10.31695/IJASRE.2022.8.8.10
  20. Pabendon, T., & Arapi, R. (2022). Analisis Kinerja Pembangunan Ekonomi Kabupaten Mimika Masa Pembangunan 2014 Sampai Dengan 2018. Journal of Economics and Regional Science, 1, 118-142. doi:http://dx.doi.org/10.52421/jurnal-esensi.v1i2.187
  21. Pangkey, S. S., Dotulong, L. O., & Saerang, R. T. (2023). Pengaruh Motivasi Kerja, Semangat Kerja Dan Disiplin Kerja Terhadap Produktivitas Pegawai Di Badan Perencanaan Pembangunan Daerah (BAPPEDA) Provinsi Sulawesi Utara. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 11(4), 1268-1275. doi:https://doi.org/10.35794/emba.v11i4.52388
  22. Patrick, O. A., Chike, N., & Phina, O. N. (2022). Workplace Bullying and Performance of Employees: Manufacturing Firms Perspective in Anambra State. Annals of Human Resource Management Research, 2(2), 117-129. doi:https://doi.org/10.35912/ahrmr.v2i2.1339
  23. Robbins, S. P., Judge, T. A., & Vohra, N. (2019). Organizational Behaviour by Pearson 18e: Pearson Education India.
  24. Sadeghi, S., & Barzegari, J. (2020). Accounting in the fourth industrial revolution: Exploration of digital currency exchanges using AHP method. Annals of Management and Organization Research, 2(1), 25-40. doi:https://doi.org/10.35912/amor.v2i1.556
  25. Sivarajah, U., Weerakkody, V., Waller, P., Lee, H., Irani, Z., Choi, Y., . . . Glikman, Y. (2016). The role of e-participation and open data in evidence-based policy decision making in local government. Journal of Organizational Computing and Electronic Commerce, 26(1-2), 64-79. doi:https://doi.org/10.1080/10919392.2015.1125171
  26. Sugiyono, & Sutopo, S. (2021). Metode penelitian kuantitatif kualitatif dan R dan D. Bandung: Alfabeta.
  27. Todaro, M. P., & Smith, S. C. (2009). Economic development: Pearson education.
  28. Yeh, C., Macaluso, C., & Hershbein, B. (2022). Monopsony in the US Labor Market. American Economic Review, 112(7), 2099-2138. doi:https://doi.org/10.1257/aer.20200025