The role of employee performance mediation on organizational performance

This study aimed to analyze the effect of employee training and development, motivation, work environment, employee competence on employee performance, and organizational performance. This study also aims to analyze employee performance as a mediating variable on organizational performance. The method of this research used SEM-PLS analysis. This research used all civil servants employees in The Regional Technical Implementing Unit for Goods Quality and Certification Testing Center (UPTD BPSMB) of the Jambi Province, Indonesia. This research concluded that Organizational performance is influenced by motivation, employee competence, work environment, and employee performance. Training and development, motivation, and work environment affect employee performance. Training and development, employee competence, work environment affect organizational performance mediated by employee performance. However, the influence of motivation on organizational performance cannot be mediated by employee performance.


INTRODUCTION
Employee performance and organizational performance are very closely related. The achievement of organizational goals cannot be separated from the resources owned by the organization. It runs by employees who play an active role as actors in achieving their goals (Pasolong, 2019).
The Regional Technical Implementing Unit for Goods Quality and Certification Testing Center (UPTD BPSMB) of the Jambi Province, Indonesia, is the executor of the Industry and Trade Office's operational, technical duties. As the only quality testing and certification agency in Jambi province, UPTD BPSMB has the task of carrying out testing, calibration, and quality certification of goods and providing technical guidance to producers, exporters, and the business world as the general public.
The results from The Public Satisfaction Index Survey of the UPTD BPSMB in 2018 result about 76.02%, it is included in the IKM conversion interval range with good service quality (score B). It indicates that UPTD BPSMB's performance hasn't optimal yet. Judging from the science of Human Resource Management, many factors affect organizational performance.
One of the successes of organizational performance can be seen from employee training provided by the organization. Kinisa (2019) found that the T & D (Training & development) program increased employee performance and overall organizational performance in Tanzania's banking industry. Meanwhile, Samwel (2018) found that employee training significantly affects drilling companies' performance in the Geita, Shinyanga, and Mara regions in Tanzania. However, the study also found a lack of effective training and development policies in drilling companies. Meanwhile, Mangkunegara & Agustine (2016) conducted a study at Hospital X in Indonesia, showing that training, motivation, and work environment simultaneously have a significant positive effect on doctor performance.
Motivation is the thrust of an employee to work. Motivation can affect many things in an organization. Geelmaale's research (2019) shows that if employees are positively motivated and rewarded, it will increase their worthiness and productivity to improve organizational performance. Meanwhile, Mangkunegara & Agustine's (2016) research where motivation is reflected by two indicators, namely intrinsic and extrinsic motivation, shows that training, motivation, and work environment simultaneously have a significant positive effect on the performance of doctors in X hospital in Indonesia. While Nizam & Shah's research in Pakistan (2015) concluded by testing job performance and recognizing employee performance, and motivating them by giving appropriate rewards, employees will be satisfied. Thus, their output level increases and improves organizational performance.
Employee competencies are skills and knowledge supported by work attitudes and their application in high-performance tasks and jobs that refer to the specified job requirements. Therefore, competent employees are an essential factor if a company survives in a rapidly changing environment. Research conducted by Osei & Ackah (2015) shows that competent employees will significantly contribute to the entire organization's performance. Meanwhile, the research findings carried out by Hanafi & Ibrahim (2018) revealed that employee competence has a direct impact on service performance and customer experience and that it is significant, and that customer experience has a direct impact on service performance.
The work environment has both positive and negative effects on the psychological and well-being of employees. Research conducted in Kenya by Gitonga & Gachunga (2015) shows that the work environment significantly and positively affects government ministries' organizational performance. The psychosocial environment, as the most significant factor, has a significant positive relationship. Meanwhile, Kegel (2017) shows evidence that the design of a physical work environment can positively or negatively affect organizational success. The physical work environment affects organizational performance in performance, collaboration, innovation, effective human resource management, and profitability. The physical work environment also affects employee performance, such as engagement, performance, welfare, and satisfaction.
Employee performance is a measure of an employee's performance. Irfan et al. (2019) argue that staff performance is closely related to organizational goals or individual staff performance. Samwel's (2018) research reveals that private organizations practice performance management and have an effective performance management system to evaluate their employees' performance. Meanwhile, Kumar's research (2014) states that performance appraisal positively impacts employee abilities and organizational performance.
Based on empirical studies, there is an effect of training and development, motivation, work competence, work environment, and employee performance on organizational performance. Therefore, there are research gaps related to employee performance that can be examined at UPTD BPSMB. Training and development is an essential aspect of human resource development. Training and development will provide opportunities for employees to perform better and opportunities for careers in organizations. Owotunse's research (2018) shows that training and development have a significant relationship with employee performance and productivity. While Younas et al.'s (2018) research on the banking sector in Pakistan revealed that development leads to better employee performance, training and development improves employee performance.
Motivation determines the direction for employees to excel in the organization. Research by Olafsen et al. (2015) stated that intrinsic work motivation in salary provision does not affect employee performance, but salary payment's fairness impacts employee performance. Research by Kuvaas et al. (2017) shows that employees work better if they are intrinsically motivated. Besides, Shahzadi et al. (2014) showed that intrinsic motivation for teachers in Pakistan has a significant impact on their performance. Research by Mohamud et al. (2017) shows that financial rewards and job enrichment have a significant and positive effect on employee performance and employee motivation that affect Hormuud Company's performance in Mogadishu, Somalia. Meanwhile, Ali et al. (2016) stated that motivation plays a vital role in employee performance and job satisfaction in the IT Park sector in Peshawar, Pakistan.
Employee competency improvement can be made through increasing employee knowledge, improving employee skills, and improving employee attitudes. On the other hand, employees' motivation will arise from the employees' external motivation and internal motivation. Research by Kurniawan et al. (2018) shows that competence and motivation positively affect employee performance. At the same time, Martini et al. (2018) found that employee competence and organizational commitment dimensions showed a significant positive effect on employee performance.
The existence of a work environment that is conducive and comfortable will create enthusiasm from employees in working performance in each job. Research by Putri et al. (2019) shows that the work environment affects employee performance. A good work environment, adequate facilities, a conducive workplace, and a good relationship with colleagues and superiors will provide comfort to employees. When employees feel comfortable and support by their social environment, employees will be encouraged to work well. Meanwhile, Research Khoso et al. (2016) revealed that the factors of leadership support, job assistance, and physical work environment are positively correlated with employees' performance in five private hospitals in Hyderabad, India.
Thus, there is an effect of training and development, motivation, work competence, and work environment on employee performance from several studies. Therefore, there is a research gap about employee performance that can be examined at UPTD BPSMB.
According to previous studies' results, it can be formulated to influence training and development, motivation, work competence, and work environment on employee performance on organizational performance through employee performance. Therefore, a research gap related to employee performance as a mediator of organizational performance can be examined at UPTD BPSMB.

METHODS
This research is quantitative research with an explanatory type. This study used a survey method for all civil servants in UPTD BPSMB Jambi Province, with as many as 19 people. Data collection used a questionnaire with a 5-point Likert scale instrument (Strongly disagree to agree strongly). Furthermore, the operational definition of this research is in Table 1. Employee training refers to programs that provide information, new skills, or professional development opportunities for employees (Olalere & Adegnuba, 2013

RESULTS AND DISCUSSION
Based on Table 2, the knowledge indicator, from the employee competencies variable, is in the medium category. Meanwhile, all other indicators of all existing variables are in the high category. It shows that the respondents provide a good picture of this study's indicators at the UPTD BPSMB Furthermore, Figure 2. is the calculation result of the initial research model. According to Ghozali (2008), the measurement model's convergent validity with reflective indicators can be seen from the correlation between item scores/indicators and their construct scores. This correlation is known as the loading factor (outer loading). Indicators are considered reliable if they have a positive correlation value above 0.70. However, at the scale development research stage, loading 0.5 to 0.6 is still acceptable.  Based on the loading factor value (Figure 3), Average Variance Extracted, and Composite Reliability (Table 3), each variable's indicators are reliable and valid, reflecting their respective variables. I tested the structural model's goodness of fit against the inner model using predictive-relevance (Q2) values. The predictive-relevance result shows that the diversity of data that can be explained by the model is 88.79%. This result indicates that the research model has predictive-relevance and can be used for hypothesis testing.  Table 5 illustrates the ability to reflect the effect between variables. Employee training and development (ETD) does not have a significant effect on organizational performance. It is due to the absence of comprehensive training and development planning at UPTD BPSMB. The results do not support the results of research conducted by Kinisa (2019)  Motivation (M) has a significant influence on organizational performance. Thus motivation can improve organizational performance both from external effectiveness as well as internal justice. This study support the results of research conducted by Geelmaale (2019), Mangkunegara & Agustine (2016), and Nizam & Shah (2015).
Employee competence (EC) has a significant influence on organizational performance. This result support Osei & Ackah's (2015) and Hanafi & Ibrahim's (2018) research. The work environment (WE) has a significant influence on organizational performance. It supports research by Gitonga & Gachunga (2015) and Kegel (2017).
Employee performance (EP) has a significant influence on organizational performance. This result supports the research by Samwel (2018) and Kumar (2014). Employee Training and development has a significant influence on organizational performance, support the research by Owotunse (2018) and Younas et al. (2018).
Motivation (M) has a significant effect on employee performance. The results of this study support the results of research conducted by Olafsen et al. (2015), Mohamud et al. (2017), Kuvaas et al. (2017), Shahzadi et al. (2014), andAli et al. (2016) Employee competence (EC) has a significant influence on employee performance (EP). The results support Kurniawan et al. (2018) and Martini et al. (2018). The working environment (WE) has a significant effect on employee performance (EP). These results support the research by Putri et al. (2019) and Khoso et al. (2016). Furthermore, to test the mediating effect on employee performance, the Sobel Ttest was conducted. The recapitulation of the mediation test is given in Table 6. Employee performance (EP) can mediate the effect of employee training and development (ETD) on organizational performance (OP). The results of this study reinforce and support previous empirical research, which states that employee performance mediates the relationship between training and employee development and organizational performance. (Owotunse, 2018;Younas et al., 2018;Kinisa, 2019;Samwel, 2018;Mangkunegara & Agustine, 2016).
Employee performance (EP) is not able to mediate the influence of motivation (M) on organizational performance (OP). It happens because UPTD BPSMB employees' motivation is still low to improve individual employee performance so that ultimately it also does not affect organizational performance. It indicates that motivation in the form of internal motivation and external motivation cannot be mediated by employee performance in work quality, work quantity, attendance, and the ability to work together on organizational performance in external effectiveness and internal justice.
This result is related to the research findings stating that there is no effect of training and development on organizational performance, motivated by the mutation policy for trained staff. UPTD BPSMB is forced to return to training and development for other staff. This condition impacts the loss of employee motivation so that, in the end, it does not affect organizational performance.
Employee performance (EP) can mediate the influence of employee competence (EC) on organizational performance (OP). This result strengthens and supports previous empirical research that states that employee performance mediates the relationship between employee competence and organizational performance. (Kurniawan et al., 2018;Martini et al., 2018;Osei & Ackah, 2015;Hanafi & Ibrahim, 2018).
Furthermore, employee performance (EP) can mediate the influence of the work environment (WE) on organizational performance (OP). This study's results strengthen and support previous empirical research that states that employee performance mediates the relationship between work environment and organizational performance. (Putri et al., 2019;Khoso et al., 2016;Kegel, 2017;Gitonga & Gachunga, 2015).

Conclusion
Organizational performance is influenced by motivation, employee competence, work environment, and employee performance. Training and development, motivation, and work environment affect employee performance. Training and development, employee competence, work environment affect organizational performance mediated by employee performance. However, the influence of motivation on organizational performance cannot be mediated by employee performance.

Recommendation
Training and development programs can synchronize the needs for meeting organizational development and employee competency development to increase employees' capacity by organizational needs. Furthermore, UPTD BPSMB can become the organization that employees expect to improve competence and achievement.
Future researchers hope to discuss the training system and employee development to support the theory of organizational development and organizational competitiveness.