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Examining the Impact of Job Security and Motivation on
Organizational Performance: The Mediating Roles of Job
Satisfaction and Organizational Commitment in PDAM Tirta
Montala, Aceh Besar, Indonesia
Munazir, Muhammad Adam, Sofyan Idris
Master of Management Study Program, Faculty of Economics and Business, Syiah Kuala University
DOI : https://doi.org/10.51583/IJLTEMAS.2024.130716
Received: 18 July 2024; Accepted: 01 August 2024; Published: 20 August 2024
Abstract: This research aims to analyze the influence of job security and motivation on organizational performance with job
satisfaction and organizational commitment as intervening variables at PDAM Tirta Montala, Aceh Besar Regency. The number
of respondents was 153 people. The selection of respondents used a census approach. The research results show that there is a
significant influence of the 5 direct hypothesis influences that were tested. Likewise, of the 2 indirect hypotheses tested, both
have a significant influence. The study conducted at the Tirta Montala Regional Drinking Water Company (PDAM) in Aceh
Besar has important managerial implications for the sustainability and development of this company. These implications can
guide managers and stakeholders in making strategic decisions, optimizing performance, and increasing operational efficiency
Keywords: Job Security' Motivation, Organizational Performance, Job Satisfaction and Organizational Commitment
I. Background
Organizational performance is an important aspect that must be studied in a PDAM Tirta Montala because it has a direct impact
on the success and continuity of the business (Lucky, EOI, Minai, MS, & Rahman, HA 2013). Organizational performance
reflects the extent to which PDAM Tirta Montala achieves its goals. Evaluation of organizational performance helps in assessing
the extent to which PDAM Tirta Montala has succeeded in implementing strategies and achieving predetermined targets (Bakotić,
D. (2016). PDAM Tirta Montala which has good organizational performance tends to be more competitive. High performance
enables PDAM Tirta Montala to stand out in the market, attract customers, and compete effectively with competitors. Strong
organizational performance creates an environment that supports growth and innovation (Kalogiannidis, S. 2021). development,
and creating of innovative products or services.
However, the question is how the goal of improving organizational performance can be achieved as planned. Not all PDAM Tirta
Montala management who are given the mandate to manage the organization can fulfill the expectations of PDAM Tirta Montala
owners to place PDAM Tirta Montala as a well-performing organization.
This also happened to PDAM Tirta Mountala Aceh Besar. Customers have submitted many complaints regarding PDAM Tirta
Montala's services. A resident of Monsinget Hamlet, Gampong Kajhu, Baitussalam District, Aceh Besar Regency named Lestari
admitted that he was disappointed with the services provided by PDAM Tirta Mountala. The reason is that water has not flowed
to residents' homes for a week. The result of no water supply from PDAM, said Lestari, has had an impact on his daily activities
(Tati Firdiyanti 2023; Muhammad Fahmi 2023).
PDAM Tirta Mountala Aceh Besar is PDAM Tirta Montala which is responsible for the supply and distribution of drinking water
in the Aceh Besar Regency area. As PDAM Tirta Montala's drinking water area, PDAM Tirta Mountala has a strategic role in
ensuring the availability of clean, safe and affordable drinking water for the people in the area. PDAM Tirta Montala is operated
by the Aceh Besar Regency government to meet the population's basic needs for access to clean water, as well as ensuring the
maintenance of water quality in accordance with applicable health and safety standards. Through efficient and sustainable
distribution efforts, PDAM Tirta Mountala plays a role in improving the welfare of local communities through reliable and quality
drinking water services.
Existing literature generally explores affective, continuity, and normative commitment, there is limited understanding of Public
Service Commitment (Kalogiannidis, S. (2021), a specific dimension of commitment that specifically applies to organizations
operating in the field of public service, such as PDAM Tirta Mountala. However, Public Service Commitment which includes
employee dedication and loyalty to the mission of providing clean and easily accessible water to the community, which reflects a
commitment to community welfare, has not been widely discussed, although it is considered very important for public utility
organizations its impact on overall organizational performance remains unexplored.
By exploring the unique context of public service commitment in PDAM Tirta Mountala Aceh Besar, this research can contribute
new insights into the relationship between specific dimensions of commitment and organizational performance, by addressing
gaps in the existing literature. This research gap aims to dig deeper into the factors that influence Organizational Commitment and
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
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its implications for PDAM Tirta Montala water provider, providing actionable insights for organizational leaders seeking to
strengthen the level of commitment among employees.
II. Literature Review and Hypothesis Development
The Effect of Job Security on Job Satisfaction and Organizational Performance
According to Artz, B., & Kaya, I. (2014), job security has a significant impact on employee job satisfaction. High job security
creates an environment that provides a sense of certainty and comfort, increases motivation, and reduces stress levels. Strong job
security can also strengthen positive emotional ties to the organization and increase employee loyalty. Conversely, a lack of job
security can create uncertainty and anxiety, reduce job satisfaction, and potentially affect organizational performance (Kwabiah,
A., Hodibert, VA, & Amankwa, R. 2016); Umrani, WA, Afsar, B., Khan, M., & Ahmed, U. 2019)..
According to Lucky, EOI, Minai, MS, & Rahman, HA (2013), job security also has a significant impact on organizational
performance. Employees who feel safe tend to be more focused, dedicated and contribute positively. Job security creates a stable
foundation for productivity, reduces stress, and improves psychological well-being. By ensuring good job security, organizations
can create a strong foundation for achieving long-term goals and improving service quality (Imran, R., Majeed, M., & Ayub, A.
(2015).
H1: The Effect of Job Security on Job Satisfaction
H2: The Effect of Job Security on Organizational Performance
The Influence of Motivation on Organizational Commitment and Performance
Al-Madi, FN, Assal, H., Shrafat, F., & Zeglat, D. (2017) and also Taduvana, S. (2017) confirmed that individual motivation has a
significant influence on organizational commitment. Motivation that comes from recognition, development opportunities, and a
sense of personal accomplishment can strengthen employees' emotional ties to the organization. Motivation also has a positive
impact on organizational performance, encourages active involvement, and creates a dynamic work environment (Đorđević, B.,
Ivanović, Đ. M., Lepojević, V., & Milanović, S. 2020; Salleh, SM, Zahari, ASM, Said, NSM, & Ali, SRO 2016; Rahim, AR, &
Jam'an, A. 2018).).
H3: Influence of Motivation on Organizational Commitment
H4: Influence of Motivation on Organizational Performance
The Effect of Job Satisfaction on Organizational Performance
According to Latif, MS, Ahmad, M., Qasim, M., Mushtaq, M., Ferdoos, A., & Naeem, H. (2013), job satisfaction has a big impact
on organizational performance. Satisfied employees tend to be more productive, creative and have higher levels of performance.
A high level of satisfaction also influences employee absenteeism and turnover, maintaining a stable workforce (Miah, MM
(2018; Yousef, DA 1998).
H5: Effect of Job Satisfaction on Organizational Performance
The Influence of Organizational Commitment on Organizational Performance
Nikpour, A. (2017) states that organizational commitment has a significant impact on the overall performance of an entity.
Employees who have high commitment tend to show better performance, creating a sense of responsibility and loyalty to the
vision, mission and values of the organization. Organizational commitment also creates a positive work environment, increases
team collaboration, and supports the constructive exchange of ideas (Kwabiah, A., Hodibert, VA, & Amankwa, R. 2016).
H5: Effect of Job Satisfaction on Organizational Performance
In the context of PDAM Tirta Montala, creating a safe work environment, motivating employees, increasing job satisfaction, and
building organizational commitment are important steps to achieve optimal organizational performance. By understanding and
optimizing these factors, organizations can achieve their long-term goals, improve service quality, and ensure sustainability of
overall performance.
Figure 1. Research Framework
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III. Research Methods
3.1 Research Instruments
All measurement items were taken from previous research to ensure validity; however, slight changes to the statements were
made to fit the current analysis. For organizational performance, measurement uses 5 items adapted from Berberoglu, A. (2018).
For the Work Motivation variable, it is taken from 5 items developed by Anwar, K., & Aima, MH (2019).
For Job Satisfaction, measurement is carried out using 5 items developed by Ventakesh (2012). Then the Organizational
Commitment variable was measured using 5 measurement items developed by Bytyqi, Q. (2020).. A questionnaire with a 5 point
Likert scale was used to collect data. Apart from that, this research used in-depth interviews with several sources (informants).
This is done to obtain in-depth information related to research variables and to support the results of quantitative analysis.
3.2 Population and Research Sample
Population according to (Supriadi & Sui Pheng, 2018; Hair, Joseph F., William C. Black, Barry J. Babin, Rolph E. Anderson, &
Ronald. L. Tatham. 2014) is the total collection of elements in an area that you want to study, which consists of objects/subjects
that have certain qualities and characteristics determined by researchers to be studied and then conclusions drawn. The population
in this study were all employees at PDAM Tirta Mountala, totaling 153 employees.
3.3 Data analysis
The data analysis technique in this research is descriptive and verification. Descriptive analysis was conducted to assess the
demographic profile of respondents and the internal consistency of the constructs. (Ferdinand, Augusty. 2014). Meanwhile,
verification analysis uses SEM (Structural Equation Modeling) to verify the relationship paths between variables in this research.
(Ghozali, I. (2018). In addition, the SEM analysis software is IBM SPSS-AMOS version 22.
IV. Research Results and Discussion (Discussion)
4.1 Characteristics of Respondents
The research results showed that the respondents at PDAM Tirta Montala, Aceh Besar Regency were dominated by male
employees, namely 121 people, while there were 32 female employees. In terms of age, the largest number of respondents were in
the 31-35 year age range, with 60 people, ahead of respondents aged 26-30 years with 45 people. The majority of respondents
have employment status as permanent employees (72 people), compared to contract employees (65 people). The educational
characteristics of the respondents show that the majority have a bachelor's educational background (86 people), followed by high
school graduates (48 people) and Diploma III (7 people). Postgraduate education was attended by 12 respondents. Employee
work periods tend to be between 2-3 years, with the number of respondents being 57 people, while there are fewer people with
work periods of less than 1 year or more than 5 years.
Thus, it can be concluded that the employees of PDAM Tirta Montala, Aceh Besar Regency who were respondents have the
general characteristics of being men aged 31-35 years, with permanent employee status, with a bachelor's degree, with a work
period of 2-3 years. They are considered to be productive and innovative young workers, with the potential to improve PDAM
performance in providing quality drinking water services to the community.
4.2 Research Instrument Testing: Validity and Reliability
Construct validity testing using Average Variance Extracted (AVE) shows that all variables, namely Job Security, Motivation, Job
Satisfaction, Organizational Commitment, and Organizational Performance, have an AVE value> 0.50, meeting the construct
validity requirements. This indicates that the latent construct is able to cover most of the diversity of manifest variables involved
in the research. The existence of this strong representation indicates that the measuring tool has adequate validity.
Next, a discriminant validity test was carried out to ensure significant differences between the concepts measured. Table 4.2
shows that the diagonal values (top values) of the Job Security, Motivation, Job Satisfaction, Organizational Commitment and
Organizational Performance variables exceed the construct validity values in the same row, indicating that there are real
differences between these variables. This indicates that the discriminant coefficient meets the requirements, ensuring discriminant
validity between variables.
Reliability testing using the Cronbach Alpha (CA) method shows CA values above 0.60 for all variables, indicating an adequate
level of consistency. These results provide confidence that the measurement instruments for the variables Job Security,
Motivation, Job Satisfaction, Organizational Commitment and Organizational Performance are reliable and have high reliability.
In this way, research results can be interpreted with strong confidence, establishing a solid foundation for data analysis and
accurate conclusions in the research context.
c. Measurement Model (Measurement Model)
Convergent validity aims to recognize the validity of each relationship between the marker and the construct or latent variable. In
this research, a loading factor limit of 0.50 will be used. From the measurement calculations, it appears that there is 1 indicator
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that does not meet the requirements because it has a loading factor figure below that required, namely 0.5. So this indicator must
be eliminated. After being eliminated, the new model measurement photo is
Figure 2. New Measurement Model
The new loading factors can be seen in the table below.
Table 1. New Loading Factor
Indicator
Original Sample
(O)
T Statistics (|O/STDEV|)
P Values
a1 <- Job Security
0.851
34,448
0
a2 <- Job Security
0.81
23,634
0
a3 <- Job Security
0.787
16,988
0
a4 <- Job Security
0.834
40,352
0
a5 <- Job Security
0.74
17,682
0
b1 <- Motivation
0.833
24,916
0
b2 <- Motivation
0.832
33.15
0
b3 <- Motivation
0.867
48,278
0
b4 <- Motivation
0.616
8,837
0
b5 <- Motivation
0.547
3,712
0
c1 <- Job Satisfaction
0.83
33,759
0
c2 <- Job Satisfaction
0.836
33,956
0
c3 <- Job Satisfaction
0.798
15,236
0
c4 <- Job Satisfaction
0.638
6,767
0
c5 <- Job Satisfaction
0.765
22,377
0
d1 <- Organization Commit
0.758
14,991
0
d2 <- Organization Commit
0.83
35,847
0
d3 <- Organization Commit
0.8
29,218
0
d4 <- Organization Commit
0.838
33,892
0
d5 <- Organization Commit
0.837
47,861
0
e1 <- Organization Perform
0.814
29,534
0
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e2 <- Organization Perform
0.864
42.106
0
e3 <- Organization Perform
0.828
26,639
0
e4 <- Organization Perform
0.86
44,341
0
e5 <- Organization Perform
0.717
14,072
0
Source: Data processing results (2024)
From Table 4.9 above, it can be seen that none of them has a coefficient value below 0.5 or rounded up to 0.5. So, in terms of
factor loading, all existing indicators are said to have a loading factor that is more than the required requirements, so they are said
to be valid for inclusion in structural testing. However, before proceeding with structural testing, we will first look at the
suitability of the model to see how fit the model that is built is according to the existing data. Testing is carried out with Goodness
of Fit.
4.3 Verifying Hypothesis Testing
4.3.1 Direct Hypothesis Testing
After all assumptions have been met, the next hypothesis test will be carried out as proposed in the previous chapter. Testing of
the 6 direct hypotheses of this research was carried out based on the Critical Ratio (CR) value of a causal relationship from the
SEM processing results as in table 4.11 below.
Table 4.21 Results of Direct Influence Hypothesis Testing
Original
Sample
Sample
Mean
Standard
Deviation
T Statistics
P
Values
Job Satisfaction -> Organization
Performance
0.214
0.215
0.065
3.3
0.001
Job Security -> Job Satisfaction
0.697
0.7
0.045
15.4
0
Job Security -> Organization
Performance
0.406
0.402
0.068
5,939
0
Motivation -> Organizational
Commitment
0.578
0.588
0.044
13,032
0
Motivation -> Organization
Performance
0.153
0.154
0.056
2,719
0.007
Organization Commitment ->
Organization Performance
0.205
0.205
0.05
4,115
0
Hypothesis 1 examined the relationship between job satisfaction and organizational performance. The test results revealed a t-
statistics value of 3.3 with a p-value of 0.001, indicating a significant relationship. The low p-value supports rejecting the null
hypothesis, thereby confirming that job satisfaction significantly impacts organizational performance.
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In Hypothesis 2, the relationship between job security and job satisfaction was analyzed. The results showed a t-statistics value of
15.4 with a p-value of 0, confirming a significant relationship. It can be concluded that job security significantly influences the
level of job satisfaction.
Hypothesis 3 focused on the relationship between job security and organizational performance. The test results indicated a t-
statistics value of 5.939 and a p-value of 0, confirming a significant relationship. The rejection of the null hypothesis suggests that
job security has a notable impact on organizational performance. Hypothesis 4 explored the effect of motivation on organizational
commitment. The analysis showed a t-statistics value of 13.032 and a p-value of 0, indicating a very significant relationship. The
low p-value highlights the high impact of motivation on organizational commitment. Hypothesis 5 investigated the relationship
between motivation and organizational performance. The test results yielded a t-statistics value of 2.719 and a p-value of 0.007,
showing a significant relationship. Although the impact is not as strong as other hypotheses, motivation still significantly
influences organizational performance.
Finally, Hypothesis 6 analyzed the effect of organizational commitment on organizational performance. The results revealed a t-
statistics value of 4.115 and a p-value of 0, demonstrating a significant effect. The rejection of the null hypothesis confirms that
high organizational commitment positively impacts organizational performance.
V. Managerial Implications
The study at PDAM Tirta Montala in Aceh Besar provides significant managerial insights that can guide strategic decisions to
optimize performance and enhance operational efficiency. Managers and stakeholders can leverage these findings to make
impactful changes. Increasing job satisfaction is crucial; implementing policies and programs that improve the work environment
and facilities can boost employee satisfaction, leading to higher productivity and better customer service. Strengthening job
security is another key area; focusing on effective job security measures, such as ensuring job stability and a supportive work
environment, can significantly enhance employee satisfaction and performance.
Additionally, encouraging motivation and organizational commitment is essential. Developing incentive programs and reinforcing
company values can improve team performance and employee contributions. Optimizing personnel systems is also vital;
enhancing aspects like payroll and career development opportunities can increase overall satisfaction, motivation, and
commitment among employees. Focusing on employee development through training and development programs can improve
qualifications and competencies, positively impacting organizational performance. Lastly, improving communication and
engagement within the organization can strengthen employees' sense of ownership, increase their motivation, and reinforce their
commitment to the company's goals.
These implications encourage a holistic approach to human resource management at PDAM Tirta Montala, to create a better work
environment and improve overall organizational services.
VI. Conclusion
From the results of the study at PDAM Tirta Montala in Aceh Besar, there are conclusions that have important implications for
operational sustainability and organizational development. This study explores the relationship between job satisfaction, job
security, motivation, organizational commitment, and organizational performance. The conclusions of this analysis provide an in-
depth look at the company's internal dynamics, providing direction for further action.
The results of the analysis show that job satisfaction has a significant impact on organizational performance at PDAM Tirta
Montala. The positive relationship between employee job satisfaction and organizational performance emphasizes the importance
of prioritizing aspects that influence job satisfaction, such as the work environment, personnel policies, and career development
opportunities. This conclusion illustrates the need for management to understand employee needs and expectations to create
supportive working conditions, creating a healthy balance between job demands and individual satisfaction. Other findings
suggest that job security has a positive impact on job satisfaction and organizational performance, providing a basis for improving
job security policies and practices. Management can consider providing better job security, transparent communication about job
security policies, and creating a stable work environment. Employee well-being and confidence in the stability of their jobs can
create a solid foundation for increased productivity and overall organizational performance.
Other key findings highlight the importance of motivation and organizational commitment. By knowing that motivation has a
positive effect on organizational commitment, and both have a positive impact on organizational performance, PDAM Tirta
Montala management can design strategies to increase employee motivation and commitment. Incentive programs, career
development opportunities, and a motivating organizational culture can be a focus for strengthening employee engagement and
their contributions to organizational goals.
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