TITLE PAGE THE RELATION OF RISK ALLOWANCE WITH JOB SATISFACTION AND WORK MOTIVATION OF OFFSHORE EMPLOYEES IN CHEVRON COMPANY
By Eka Swani 19009161
Undergraduate Program School of Business and Management Institut Teknologi Bandung
THE RELATION OF RISK ALLOWANCE WITH JOB SATISFACTION AND WORK MOTIVATION OF OFFSHORE EMPLOYEES IN CHEVRON COMPANY
EKA SWANI 19009161
Examination Date: August 15st, 2012 Graduation Date: October 20th, 2012 Undergraduate of Business and Management Program Institut Teknologi Bandung Final Project Advisor: Ir. John Welly, MSc
ABSTRACT According to Sherman, working environment condition is one of the factor that is need to be considered in giving compensation instead of the three factors which are skill, effort, and responsibility that established into compensation directly or indirectly. This is why employees at east Kalimantan received higher compensation package especially those working offshore compared to employees working at Sumatra or Jakarta because of the higher risk they have to bear in their current activities. While Wage Compensation for Dangerous Work Revisited by Peter Dorman; Paul Hagstrom, an Industrial & Labor Relations Review, has been addressing two issues crucial to the interpretation of study attempting to estimate wage compensation for dangerous work, no such relationship has been investigated in the relation toward employee motivation and satisfaction. Chevron is Indonesia's largest oil producer, with total daily production averaging 477,000 barrels of liquids in 2010 and daily production of natural gas of 611 million cubic feet. With the risk of working offshore, Chevron differentiate the compensation packages for offshore employee at east Kalimantan that is determined at PKB in Section IV article 26 act 3 referring about compensation for work in particular operation. In the PKB applied for 2011-2013 there is a demand from the union or SPNCI for Chevron to increase their risk allowance. This demand did not fulfilled by Chevron considering the level of risk allowance the employees received right now.This research is tried to address the issue regarding risk allowance and its relation toward job satisfaction and work motivation in Chevron Company concerning the job safety there (zero accident) in respect toward Hygiene and JCM theory; for job satisfaction- and
Howlet Theory; for work motivation. Thus in the end of the research the importance of this benefit and how its bring satisfaction and motivation there will be answered. The model build in this research is based on the reconstruction model used by Jacques Igalens and Patrice Roussel (1999) in The Interaction between Risk Allowance, Work Motivation, and Job Satisfaction journal. Thus, the questionnaires that are divided into two categories; employee job satisfaction and work motivation survey, is based on this model. The questionnaires are spread to 203 offshore employees in Chevron Company at East Kalimantan. Discriminant analysis is used in the process of data analysis as statistical method that is used to help understand the relationship between risk allowance with job satisfaction and work motivation." There are various tests of significance that can be used in discriminant analysis. One that is used in this research is based on Wilks lambda, which provides an assessment of the discriminating power of the function derived from the analysis. If this value is found to be statistically significant, then the set of independent variables can be assumed to differentiate between the groups of the categorical variable The result of this research based on the discriminant analysis show that there is a difference between satisfied employees with a non satisfied one with its correlation with risk allowance. Thus, risk allowance of an offshore employee has a positive correlation with the level of satisfaction. In term of motivation, the discriminant analysis revealed that risk allowance does not influence or have a correlation with the level of employees’ motivation. This suggests that risk allowance does not follow hygiene and JCM theory. In this case the absence of the allowance will not de-motivate the employees. In other word the existence of risk allowance; whether it exist or not, will not have any influence to the motivation of Chevron offshore employees. Key Words: Risk Allowance, Job Satisfaction, Work Motivation, Offshore Employees, Chevron
THE RELATION OF RISK ALLOWANCE WITH JOB SATISFACTION AND WORK MOTIVATION OF OFFSHORE EMPLOYEES IN CHEVRON COMPANY
EKA SWANI 19009161
Tanggal Sidang: 15 Agustus 2012 Tanggal Wisuda: 20 Oktober 2012 Program Sarjana Bisnis dan Manajemen Institut Teknologi Bandung Pembimbing: Ir. John Welly, MSc,
ABSTRAKSI Menurut Sherman, kondisi lingkungan kerja adalah salah satu faktor yang harus diperhatikan dalam pemberian kompensasi selain dari 3 faktor lannya yaitu kemampuan, usaha, dan tanggung jawab yang mempengaruhi kompensasi baik secara langsung maupun tidak langsung. Hal inilah yang menyebabkan mengapa pegawai-pegawai di Kalimantan Timur mendapatkan gaji yang lebih tinggi terlebih lagi mereka yang bekerja di lapangan lepas oantai dibandingkan dengan pegawai-pegawai yang bekerja di Sumatra atau Jakarta yang disebabkan oleh tingkat resiko yang harus mereka tanggung dalam melakukan pekerjaan sehari-hari. Walau Wage Compensation for Dangerous Work Revisited oleh Peter Dorman; Paul Hagstrom, an Industrial & Labor Relations Review telah memabwa isu penting dalam penentuan estimasi kompensasi untuk pekerjaan-pekerjaan beresiko, belum ada studi yang melakukan penelitian untuk mengetahui hubungannya terhadap motivasi dan kepuasan pegawai. Chevron adalah penghasil mimyak terbesar di Indonesia dengan total produksi perhari rata-rata 477.000 barel minyak pada tahun 2010 dan produksi perhari natural gas yang mencapai 611 juta kubik. Dengan resiko bekerja sebagai pekerja lepas pantai, Chevron membedakan paket kompensasi untuk para pegawai ini yang ditentukan dalam bab 4 artikel 26 ayat 3 yang menyatakan kompensasi untuk bekerja didaerah tertentu. Di dalam PKB tahun 2011-2013 ini, para serikat pekerja dari Chevron atau SPNCI meminta
Chevron untuk meningkatkan tingkat tunjangan resiko mereka. Permintaan ini tidak dipenuhi oleh perusahaan melihat pertimbangan dari tingkat tunjangan resiko yang saat ini diberikan oleh Chevron. Penelitian ini mencoba untuk melihat hubungan antara tunjangan resiko terhadap tingkat kepuasan dan motivasi kerja para pegawai di perusahaan Chevron dari sudut pandang keselamatan kerja (zero accident) berdasarkan teori Hygiene dan JCM teori untuk kepuasan kerja dan Howlet dan segitiga motivasi teori untuk motivasi kerja. Sehingga diakhir penelitian dapat terjawab pentingnya manfaat tunjangan resiko dan bagaiman ia membawa kepuasaan dan motivasi kerja akan terjawab. Model yang dibangun dalam penelitian ini adalah berdasarkan model yang digunakan oleh Jacques Igalens dan Patrice Roussel (1999) dalam jurnal The Interaction between Risk Allowance, Work Motivation, and Job Satisfaction journal. Sehingga kuisioner yang dibagi menjadi 2 kategori; kepuasan kerja pegawai dan motivasi survey, dibuat berdsarkan model ini. Kuisioner disebarkan ke 203 pegawai lepas pantai di perusahaan Chevron di Kalimantan Timur. Analisis diskirminan digunakan dalam proses penganalisisan datasebagai metode statistical yang digunakan untuk membantu pemahaman terhadap hubungan tunjangan resiko dengan kepuasan dan motivasi kerja. Ada beberapa signifikansi tes yang digunakan dalam diskriminan analisis. Salah satu yang digunakan dalam penelitian ini adalah Wilks Lambda, yang memberikan hasil diskriminan berdasarkan fungsi yang berasal dari analisis. Jika angka ini berada pada level signifikan maka variable independen pada setiap grup bias diasumsikan berbeda dan mempengaruhi. Hasil berdasarkan diskriminan analisis menunujukkan adanya perbedaan antara pegawai yang puas dengan pegawai yang tidak puas terhadap korelasinya dengan tunjangan resioko. Sehingga tunjangan resiko dari pegawai lepas pantai mempunyai korelasi positif dengan level kepuasan kerja. Dalam hal motivasi, diskirminan analisis menunjukkan tidak adanya korelasi antara tunjangan resiko dengan motivasi kerja pegawai. Hal ini menunjukkan bahwa tunjangan resioko tidak mengikuti aturan hygiene dan JCM teori. Dalam kasus ini ketidakhadiran dari tunjangan ini tidak akan membuat para pegawai menjadi tidak termotivasi dalam berkerja. Dengan kata lain keberadaan dari tunjangan resiko tidak mempengaruhi motivasi pekerja pegawai lepas pantai di perusahaan Chevron. Kata Kunci: Tunjangan Resiko, Kepuasan kerja, Motivasi kerja, Pegawai Lepas Pantai, Chevron
VALIDATION PAGE
THE RELATION OF RISK ALLOWANCE WITH JOB SATISFACTION AND WORK MOTIVATION OF OFFSHORE EMPLOYEES IN CHEVRON COMPANY
By: Eka Swani ID No: 19009161
Undergraduate Program School of Business and Management Institut Teknologi Bandung
Supervisor
(Ir. John Welly, MSc)
FOREWORD This page will be dedicated to everyone who had helped me in the making of this research paper. First of all I want to thank God for his graciousness in always giving me strength and determination to be able to focus on my final project in order to be able to get my bachelor degree in School of Business and Management. I have learned so many things in the process of creating this final project that can change me into a better person. I also get much knowledge that I am sure will be very useful in my future. This project involve a lot of person who continue to help me, give me critics, guide me, give me an input, and also supporting me in the making of this paper. Therefore in this opportunity I would like to give my appreciation and gratitude to the following people: 1. God who always guides me, give me strength, determination, and guide me when I was in the dark to keep on and continue on finishing my final project. 2. Beloved family, they always continue to support me, cheer me up, and continue to encourage me and also give an input regarding my final project with their experience and knowledge. They are always there for me whenever I need their support in order to be able to finish my final project. 3. Mr. Ir. John Welly, MSc, as my supervisor in doing my final project. I thank you for always spare some time to continue to guide me through the process of creating my final project and for being so patience and kind in supervising me. I can finish my final project all thanks to your very big contribution as my supervisor sir. 4. Beloved boyfriend, he continues to support me, cheer me up, encouraging me to continue doing my project and to never give up and meet my target. 5. All of my friends, tutor, and lecturer in School of Business and Management who has give a lot of contribution in my research by always giving me support, input, encouragement, and knowledge I thank all of you mention above with my heart and I give my most appreciation and gratitude because you all had help me in my process of creating this research paper. Encourage me, company me, support me, and give me input and critics, and any other. I also realize that I’m still making a mistake in this paper consider I’m still learning and therefore I appreciate if the reader of my research paper can give me some feedback and input to help me improve this paper. Thank you for your concern and time.
Bandung, 2 August 2012
Eka Swani NIM: 19009161
TABLE OF CONTENT
TITLE PAGE .....................................................................Error! Bookmark not defined. ABSTRACT .......................................................................Error! Bookmark not defined. VALIDATION PAGE .......................................................Error! Bookmark not defined. FOREWORD .....................................................................Error! Bookmark not defined. TABLE OF CONTENT ...................................................................................................... 1 LIST OF FIGURE..............................................................Error! Bookmark not defined. LIST OF TABLES .............................................................Error! Bookmark not defined. CHAPTER I .......................................................................Error! Bookmark not defined. INTRODUCTION .............................................................Error! Bookmark not defined. 1.1 Background ..............................................................Error! Bookmark not defined. 1.2 Problem Identification ..............................................Error! Bookmark not defined. 1.3 Research Objectives .................................................Error! Bookmark not defined. 1.4 Scope of Research ....................................................Error! Bookmark not defined. 1.5 Benefits of Research.................................................Error! Bookmark not defined. 1.6 Report Structure .......................................................Error! Bookmark not defined. CHAPTER 2 ......................................................................Error! Bookmark not defined. THEORETICAL FRAMEWORK .....................................Error! Bookmark not defined. 2.1 Risk Allowance ........................................................Error! Bookmark not defined. 2.2 Hazardous Environment ...........................................Error! Bookmark not defined. 2.2 Job Satisfaction ........................................................Error! Bookmark not defined. 2.3 Work Motivation ......................................................Error! Bookmark not defined. 2.4 The Interaction between Risk Allowance, Work Motivation, and Job SatisfactionError! Bookmark not defined. 2.6 Discriminant Analysis ..............................................Error! Bookmark not defined. CHAPTER 3 ......................................................................Error! Bookmark not defined. RESEARCH METHODOLOGY.......................................Error! Bookmark not defined. 3.1 Methodology Chart ..................................................Error! Bookmark not defined. 3.2 Methodology Explanation ........................................Error! Bookmark not defined.
3.2.1 Problem Identification .......................................Error! Bookmark not defined. 3.2.2 Objective ............................................................Error! Bookmark not defined. 3.2.3 Scope of Research .............................................Error! Bookmark not defined. 3.2.4 Literature Study .................................................Error! Bookmark not defined. 3.2.5 Building Model ..................................................Error! Bookmark not defined. 3.2.6 Data Collection ..................................................Error! Bookmark not defined. 3.2.7 Data Analysis .....................................................Error! Bookmark not defined. 3.2.8 Conclusion .........................................................Error! Bookmark not defined. CHAPTER 4 ......................................................................Error! Bookmark not defined. DATA ANALYSIS ............................................................Error! Bookmark not defined. 4.1 Data Interpretation....................................................Error! Bookmark not defined. 4.1.1 Satisfaction ........................................................Error! Bookmark not defined. 4.1.2 Motivation .........................................................Error! Bookmark not defined. CHAPTER 5 ......................................................................Error! Bookmark not defined. CONCLUSION AND RECOMMENDATION .................Error! Bookmark not defined. 5.1 Conclusion................................................................Error! Bookmark not defined. 5.2 Recommendation......................................................Error! Bookmark not defined. REFERENCES ..................................................................Error! Bookmark not defined. APPENDIX ........................................................................Error! Bookmark not defined.
LIST OF FIGURE Figure II-1 J.Igalens and P.Roussel Model ....................................................................... 22 Figure II-2 The Triangle Model ........................................................................................ 23 Figure III-1 Methodology Chart ....................................................................................... 26 Figure III-2 Model for Risk Allowance with Job Satisfaction and Work Motivation ...... 29
LIST OF TABLES Table III-1 Sample Size by Krejcie and Morgan ...............Error! Bookmark not defined. Table IV-1 Tests of Equality of Groups Means for SatisfactionError! Bookmark not defined. Table IV-2 Pooled Within-Groups Matrices......................Error! Bookmark not defined. Table IV-3 Log Determinants ............................................Error! Bookmark not defined. Table IV-4 Test Results .....................................................Error! Bookmark not defined. Table IV-5 Eigenvalues .....................................................Error! Bookmark not defined. Table IV-6 Wilks' Lambda ................................................Error! Bookmark not defined. Table IV-7 Structure Matrix ..............................................Error! Bookmark not defined. Table IV-8 Classification Results ......................................Error! Bookmark not defined. Table IV-9 Test of Equality of Group Means for MotivationError! Bookmark not defined.
