The Effect of Rewards on Yogyakarta Grab Car Partners’ Job

Satisfaction with Motivation as an Intervening Variable

Ayudia Kumala, Arief Subyantoro, and Istiana Rahatmawati

Universitas Pembangunan Nasional Veteran Yogyakarta

Keywords: Rewards, motivations, and job satisfaction.

Abstract: The present study aims to determine the effect of rewards on Yogyakarta Grab Partners’ job satisfaction

with motivation as an intervening variable. It employed a quantitative method. The population consisted of

160 Partners, and, of these, 110 were included as the respondents. Sampling in this study uses a table to

determine the appropriate sample size of a certain population as developed by Isaac and Michael for the

percentage error of 1%, 5%, and 10%. Path analysis was conducted to analyze the data. The results of the

test and analysis reveal that rewards have a positive effect on Yogyakarta Grab Car Partners' job

satisfaction. On the other hand, they have an indirect effect on job satisfaction as mediated by motivation.

INTRODUCTION

Companies in performing their activities need

several factors that support their efforts to improve

performance and productivity. Qualified human

resources are among important factors without

which any activity in any agency or department will

remain sub-optimally executed.

Each department must realize that the success of

tasks and functions implementation depends, for the

most part, on the quality of human resources (HR).

By human resources, we mean those who dedicated

their efforts, talent, and creativity to their company.

However sophisticated the facilities and

infrastructures of an agency, it will not be moving

forward for further development without capable

employees.

To help a company move forward and grow, it

has to develop employees' skills that, in turn, will

affect their satisfaction with their jobs. Job

satisfaction can be created through the

implementation of a reward system that complies

with employees' expectations. Reward system is

critical to employees' motivation and their

performance quality that, in the end, will

improve their job satisfaction.

The reward is defined as a thing given to

motivate employees to help improve their

productivity (Tohardi, 2002). A reward system that

conforms to employees' expectations is expected to

optimize their performance and achievement. In any

organization, employees are required to meet

predetermined targets, and it is expected that these

targets can motivate them to improve their

performance. In addition, these targets will stimulate

further their effort to produce satisfactory outputs

and improve their work.

According to McClelland, when someone

perceived an urgent need, he or she will be

motivated to strive to meet the need.

Hasibuan (2008) stated that job satisfaction is an

emotional attitude that signifies a love of the job.

Such an attitude is reflected in the employee’s

morale, discipline, and performance. Some

employees may have job satisfaction that differs

from some others, despite being in the same type of

job, and this depends on their respective needs and

the system they adopted.

In this modern era, many companies provide

online-based transportation services. One of them is

Grab. Such an increase in demand for online

transportation services is indirectly demanding all

Grab partners to optimally improve their

performance. This large company also adopts a

reward and motivation system for its partners. Their

performance is periodically monitored using an

android app—such as the quality of services they

provided to their customers. Many Grab partners,

such as Grab Taxi, who remain not satisfied with

their current job. From Grab app can see that Grab

Taxi rates remain higher than those of ordinary Grab

314

Kumala, A., Subyantoro, A. and Rahatmawati, I.

The Effect of Rewards on Yogyakarta Grab Car Partners’ Job Satisfaction with Motivation as an Intervening Variable.

DOI: 10.5220/0009965403140317

In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management (ICBEEM 2019), pages 314-317

ISBN: 978-989-758-471-8

Car. This may be one of the reasons why customers’

interest in Grab Taxi diminished and, in turn,

causing low of job satisfaction among Grab Taxi

partners.

The objectives of the present study are: (1) to

determine and analyze the effect of reward on job

satisfaction; (2) to determina and analyze the effect

of reward on job satisfaction as mediated by

motivation.

2 LITERATURE REVIEW

2.1 Reward

Reward is something given to motivate employees to

help them achieve high productivity (Sondang,

2002). Indicators of rewards, according to Sondang,

are:

2.1.1 The Job Itself

he job itself as characterized by attractiveness,

opportunity to learn, and to practice to take

responsibility as well as to love the job.

2.1.2 The Wage

The right of workers or laborers as given or paid in

the form of money to them in compliance with a

certain work agreement.

2.1.3 The Co-workers

Cooperation between co-workers in carrying out the

tasks.

2.2 Job Satisfaction

Job satisfaction is a general attitude of an individual

toward his or her job (Robbins, 2002). Indicators of

job satisfaction according to Robbins are:

2.2.1 Mentally Challenging Job

In general, individuals prefer jobs that provide

opportunities to use their skills and abilities and

provide a variety of tasks, freedom and feedback

about their performance.

2.2.2 Appropriate Rewards

Employees want a payment system that is fair,

unambiguous, and in compliance with their

expectations.

2.2.3 Favorable Working Condition

Employees need a work environment that is

comfortable for their personal selves and that allows

them to perform well.

2.2.4 Supportive Colleagues

Supportive colleges are reflected in mutual respect,

loyalty and tolerance between one another, open

attitude, and intimacy between employees

2.3 Motivation

Motivation came up when someone perceived

urgency for meeting a need, and, thereby, he or she

will be motivated by the need (McClelland, 2008).

Indicators of motivation, according to McClelland,

are as follows:

2.3.1 Need for Achievement

Employees will strive to present their highest

achievement in a realistic yet challenging way for

their career advancement.

2.3.2 Need for Power

It is defined as the desire to control or influence the

surroundings, to have authority over others and to

have ideas to win the games.

2.3.3 Need for Affiliation

It is defined as the desire to form close and warm

relationships. Individuals reflect the desire to have

close relationships, cooperative and friendship with

others.

Figure 1. Conceptual Framework

3 RESEARCH METHODS

The present study employed a quantitative method

using statistic calculation as the analytical basis. The

population consisted of 160 Partners and, of these,

110 were included as the respondents. Sampling in

this study uses a table to determine the appropriate

sample size of a certain population as developed by

The Effect of Rewards on Yogyakarta Grab Car Partners’ Job Satisfaction with Motivation as an Intervening Variable

315

Isaac and Michael for the percentage error of 1%,

5% and 10%.

3.1 Validity and Reliability Testing

To measure the correlation between variables, we

use Bartlett Test of Spericity. When the result is less

than 0.5, this means that the correlation matrix has a

significant correlation with a number of variables.

The item validity statement can be seen in Corrected

item-total Correlation that, according to Azwar

(2012), can be considered as valid when R table > R

Count, or at a significance level below 0.05.

According to Ghozali (2006), a construct or variable

is considered reliable when the Cronbach alpha level

is less than 0.6.

3.2 Data Analysis Techniques

The model or technique of data analysis used in this

study is Path Analysis. It is an extension of the

multiple linear regression models. In other words, it

is an extension of regression analysis to estimate the

relationship quality between predetermined variables

on a theoretical basis. What path analysis can do is

determining the relationship between three or more

variables, and it cannot be used to confirm or reject

imaginary causality hypothesis.

4 RESULTS AND DISCUSSION

4.1 Research Result

Path analysis model for phase 1 describes the effect

of work motivation (X) on job satisfaction (Z)

expressed in the following formula:

Z = P2X (1)

Table 1. Results of Path Analysis for Phase 1

Variable Koef.

Path

t Sig.t Sig. 5%

Reward 0.727 11.003 0,000 Signifikan

Variabel dependen: motivasi

R Square = 0.529

The path analysis for phase 1 produces the

following regression equation:

Motivation = 0.727 reward

Path analysis for phase 2 that describes the effect

of reward (X) and motivation (Z) on employee job

satisfaction (Y) can be expressed by the following

formula:

Job satisfaction = P1 reward + P3 motivation

Table 2. Results of Path Analysis for Phase 2

Variable Koef. Path t Sig.t Sig. 5%

Reward .286 3.333 .001 Significant

Motivation .559 6.512 .000 Significant

Dependent Variable: job satisfaction

Adj R Square = 0.621

The path analysis for phase 2 in Table 2

produces the following regression equation:

Job Satisfaction = 0.286 reward + 0.559

motivation

The overall estimation results of the hypothesis

relationship model among three variables in this

study can be presented in the following path

diagram:

Figure 2: Path Diagram.

4.2 Relationship between Variables

Table 3. Direct Effect, Indirect Effect and Total Effect of

Reward on Job Satisfaction are mediated by motivation

Direct Effect

X  Y

(p1)

= 0.286

Indirect Effect

X Z  Y

(p2 x p3) = 0.727 x

0.559

= 0.406939

Total Effect

Direct Effect + Indirect Effect =

0.286 + 0.406939= 0.692393

4.3 Discussion

4.3.1 The Direct Effect of Reward on Job

Satisfaction

The results of path analysis show that reward has a

significant effect on job satisfaction.

ICBEEM 2019 - International Conference on Business, Economy, Entrepreneurship and Management

316

The company provides rewards when the

employees' performance complies with or exceeds

the predetermined standard. The company needs to

pay special attention to the partners' job satisfaction

by giving them rewards in accordance with their

work performance. Job dissatisfaction can lead to

employees' or partners' turnover and decreased work

morale among them. To increase employees' job

satisfaction, improvement of the reward system is a

necessary step to take.

4.3.2 The Indirect Effect of Reward on Job

Satisfaction as Mediated by Motivation

The results of path analysis indicate that reward has

an indirect effect on job satisfaction through

motivation. Partners’ motivation will drive them to

work optimally to achieve job satisfaction. The

effect of motivation is so strong that it should be

considered to be one of the important factors by the

company in order to keep its partners motivated.

Partners' perception of reward--in addition to other

compensations—given by the company will

determine their work behavior. The reward could

improve work motivation only if the partners

perceived that they are fairly rewarded. Partners who

show a high level of work motivation tend to feel

happy and satisfied because they have met the

need(s) that motivate them. Therefore, the amount of

reward received by partners will improve their

motivation and job satisfaction.

5 CONCLUSION

Based on the results of data analysis and discussion,

the following conclusions are withdrawal influences

the satisfaction of foreign tourists on heritage

attractions in Kota Gede, Yogyakarta. The quality of

the destination influences the satisfaction of foreign

tourists on heritage attractions in Kota Gede,

Yogyakarta. Tourist motivation influences the

satisfaction of foreign tourists on heritage tourism in

Kota Gede, Yogyakarta. Tourism, destination

quality, and tourist motivation together have an

influence on tourist satisfaction with heritage

tourism in Kota Gede, Yogyakarta.

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