Motivation and HRM Factors Relation

POLISH JOURNAL OF MANAGEMENT STUDIES 2020
Nadeak B., Naibaho L. Vol.22 No.2
MOTIVATION AND HRM FACTORS RELATION TO THE

EMPLOYEE LOYALTY
Nadeak B., Naibaho L.*
Abstract: The employee loyalty is an essential factor for the organizational success and has
gain the intentions of well renowned researchers and regulators globally. Thus, the basic
purpose of this study was to examine the role of education & training, internal communication,
organizational culture and employee motivation on employee loyalty. Moreover, mediation of
employee motivation is also assessed in the present study. The data is collected from workers in
the Indonesian education sector using systematic random sampling. The usable response rate in
67.18%. The data is analyzed using PLS 3.2.9. The results have revealed that there exists a
positive relationship between education & training, internal communication, organizational
culture, motivation and loyalty. Additionally, the mediating role of motivation is confirmed, as
well. The findings of the study are helpful for HRM practitioners and policymakers to develop a
strategy for making employees loyal. This study fills the gap between limited studies conducted
regarding employee loyalty in the education sector.
Keywords: employee loyalty, motivation, communication, training, Indonesia
DOI: 10.17512/pjms.2020.22.2.18
Article history:
Received July 29, 2020; Revised October 2, 2020; Accepted October 19, 2020
Introduction
In the world of business, there have been a number of changes since the last two
decades. In the past, an employee who was hired once was considered a lifetime
employee. But this notion is not applicable now. The market is very competitive. A
number of new employers are looking for employees. Therefore, a loyal employee is
key to gain a competitive advantage in this scenario. The main concern for every
organization is its employees because of increasing pressure at the workplace. In order
to achieve maximum output and productivity by the employees, motivation is the key.
In literature, a number of different ways are discussed to motivate the employees. A
*
Bernadetha Nadeak, M.Sc. in Education Management, Postgraduate Program Universitas
Kristen Indonesia, Jakarta. Indonesia; Lamhot Naibaho, English Education Department,
Faculty of Teacher and Training Education, Universitas Kristen Indonesia, Jakarta. Indonesia.
 corresponding author: bernadetha.nadeak@uki.ac.id
 lamhot.naibaho@uki.ac.id
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2020 POLISH JOURNAL OF MANAGEMENT STUDIES
Vol.22 No.2 Nadeak B., Naibaho L.
few of these ways include staying in touch with employees, appreciating the employers
because of their performance, and many other ways. Employees are needed by the
organization, and organizations need employees. Each stakeholder has expectations
from each other, and this expectation must be fulfilled by these stakeholders (Mehta,
Singh, Bhakar, & Sinha, 2010).
The factors of motivation lie in the internalized drive towards the thoughts that
dominates the certain moment. Individual, as well as overall performance of the
organization, is directly impacted by the motivation of the employee. Motivation
works as the catalyser for the employees working in a certain organization to complete
the assigned tasks in a better way than the normal routine. Employees run the
organization as they are the basic part of the organization. Each employee working in
the organization contributes to achieving organizational goals. It is important for the
organization to provide ample resources to employees so they can complete their tasks
and remain motivated. The top management of organizations should seek ways to
combine motivation and internal strength of the organizational employees to achieve
the organizational goals and objectives (Sekhar, Patwardhan, & Singh, 2013).
Organizations are looking for the ways by which they can gain and retain the
competitiveness of the business in this competitive environment. Among other factors,
the effectiveness of the organization is dependent upon the HRM factors. The main
purpose of the HR policies of the organization is to get a favourable outcome from the
employees. A number of studies have mentioned different HR factors that affect
overall organizational output and create motivation among employees (Mason, 2017;
Bilan et al., 2020).
Researchers have pointed out that organizations must look for HRM strategies that can
contribute to enhancing the capabilities of the individuals. Motivated employees are
the major concern for the HR strategies which are adopted by the organization. For this
purpose, different tools are adopted by the organization that includes career
development, training, employment opportunities, communication with employees, job
security and overall organizational culture, which promotes the personal growth of the
employees. Therefore, it is key to study the factors that enhance employee motivation.
(Hassan, 2016).
Within the service education sector, organizational culture plays a very important role
in shaping the behaviour of employees. Among many other metaphors, culture is one
that is used to understand and explore the organization. It shed light on a different
aspect of the organization, which are critical for organizational success and employees
(Warrick, 2017).
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Within any organization, communication is the key to its smooth functioning. In order
to attain organizational objectives and goals, communication is an important tool.
Moreover, communication is also regarded as the basic core of progress and profit in
the education sector. There can be many disadvantages of miscommunication like
employee rotation, the lower performance by the employee, lack of information and
misunderstanding. Poor performance is also the outcome of a lack of communication
because of the inability of managers. If the employees do not trust their managers, and
they do not communicate, the same will be the outcome. Good communication among
the employees may impact their motivation and long-term goals in terms of personal
development. Companies are successful in achieving their goals, which priorities to
communicate with their employees, and they have set a proper department to develop
and enhance communication (Chitrao, 2014). Further education and training of the
employees is also an important HR strategy to motivate the employees so they can
perform their tasks well. Further education of employees helps them to gain new
knowledge, which can be beneficial for an organization. Moreover, training can help
the employees to gain new skills, which can be important for the long-term success of
the organization.
Indonesia is one of the growing economies of ASEAN countries. Education is an
important sector and contributes majorly to the country. Positive growth is enjoyed by
the education industry of Indonesia in 2019. In this aspect, employees are key to
maintain production at the required level. Therefore, the objective of the present study
is to examine the role of HR factors like education and training, organizational culture,
and internal communication to develop motivation and keep employees loyal.
Literature review
The employees who stay in the organization for a longer period of time are considered
loyal. A number of factors are associated with the loyalty of the employees.
Organizations can enjoy a number of benefits of employee loyalty. For example, the
employee who is loyal always focuses on providing superior services to the customers
and producing good quality products. On the other hand, a number of different factors
are listed by the past researchers that impact employee loyalty. These factors include a
promotion, incentives, salaries, benefits and many others. Basically, these factors
create motivation among the employees, which leads to loyalty development. The
employees who are loyal to the education sector always focus on producing good
quality goods and services, which are important to achieve long term profitability for
the education sector. Therefore, researchers have pointed out that the behavioural
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loyalty of the employees is the outcome of organizational commitment and motivation

(Khuong, Mai, & Phuong, 2020).
Motivation is considered as the basic driving force within an individual to achieve a
certain goal. It is very important for the organization to measure the motivation of the
employee. It is also necessary for the education sectors to discuss and find out the
factors which are important to create motivation among the employees. The employees
who are motivated are more effective and productive for the organization. Therefore
they play a very important role in the survival of the organization. The basic focus of
the managers is the motivation and needs of the employees who are working in the
organization. Researchers have defined motivation as the psychological process which
provides direction to the behaviour of the employee. Basically, it is the internal drive to
unmet and unsatisfied needs and the tendency to act in a purposive manner to achieve a
certain organizational goal. The behaviour of the individual is derived through the
motivation and provide the focus and direction to act in a certain manner so the
behaviour of the employee can be reinforced (Yusof, Said, & Ali, 2016).
Researchers mentioned that there are three main elements of motivation, namely work
desire, effort intensity and permanence. The work desire reflects the preference of one
task over the other. Whereas the effort intensity shows the intensity of effort, the
employees put into completing the assigned task. In the end, permanence shows the
duration in which the employee will persist some behaviour. Researchers mentioned
that there are a number of benefits of motivated workers to the organization. Such
employees will produce high-quality goods, better performance and loyalty can be
expected from such employees who will not leave the education sector in any
circumstances (Khuong & Linh, 2020). In this aspect, researchers found that
motivation among employees plays a critical role in developing loyalty among the
employees (Doña Toledo & Luque Martínez, 2020).
Organizational culture is defined by researchers as a shared pattern of basic assumption
which a group of people learns from another group of people because it is important to
solve the external problem. Thus, in order to teach this to new members of the
organization, the procedure of doing things must be correct. Organizational culture is
the combination of complex values, traditions, commitments and ideologies that are
shared throughout the organization. This set of values have the tendency to affect the
performance of the organization. It is also the source of potential innovation for the
organization as well. Managers of the organization use the organizational culture to
differentiate it from the competitive organization (Pathiranage, Jayatilake, &
Abeysekera, 2020).
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A number of studies are conducted to assess the effect of organizational culture on

different factors. They also inspect the effect of organizational culture on employee
motivation. Researchers reported that culture is an important factor of the internal
organizational surrounding. It is important for the organization to choose the employee
having a suitable employee who has the required skills and experience. The
organization will get benefit from such employees. Organizational goals and objectives
will be negatively impacted if they hire the wrong employee. Different researchers
have used different methods to assess the relationship between motivation and culture.
Some researchers have reported that employee motivation is straight impacted by the
organization's culture. If the organizational culture is better, the motivational level of
employees will be high. In order to create motivation among the employees,
organizations focus on strong culture. The organizational usefulness can be interrupted
because of bad organizational culture. On the other hand, the good culture of the
organization can hold and appeal to the ability of the organization over the competitors.
Thus, the organizational culture is very important for the business world because it
plays an important role in creating motivation among employees (Weerasinghe, 2017).
Communication among the employees is one of the most important assets in today’s
knowledge world. For any business, communication plays a very critical role in its
success. Communication plays a very important role in creating a positive perception
among employees. Communication among employees working in an organization is as
important as external communication with other stakeholders (Chitrao, 2014). The
concept of motivation and communication are inter-related. The internal
communication that is effective plays a very vital role in the creation of a positive
attitude among employees for their work and organization. Additionally, motivation
and employee satisfaction are positively impacted by the internal communication
within the education sector. Employees, as a result of internal communication, perform
better, and they start to trust each other as well. In order to make employees feel that
they need to motivate themselves, organizations should focus on building cohesive
teams throughout the organization (Zvirbule, 2015).
If any new system is introduced in the organization, communication plays a very
important role in accepting the change. Employees may get involved in
misunderstanding and incomprehension because of poor communication among
employees. It is very important for the managers to be aware of the fact that employees
can get de-motivated because of the inadequate system at a different level of
organization. In order to mitigate such a situation, the organizational system must
focus on communicating all news with employees (Rajhans, 2012). In order to create
motivation among employees to work, communication among employees can be used
by the managers as a tool of motivation. It is critical that the employees know timely
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regarding the salary system of the organization, transparency of the salary being paid,
the variation in the salary package in terms of variable and fixed percentage and in the
end, the important conditions for the increment in fee (Zvirbule, 2015).
The organized way in which development is provided to the employees by the
organization with the purpose of improving the quality of existing and new employees
is known as training (Ozkeser, 2019). Education is referred to as steps that lead to
acquiring new knowledge with the purpose of organizational growth. Educational and
development programs are provided by the organization to the employees so they can
gain new knowledge and skills. Employee education is getting strategically important
for education sectors in the present business environment. Therefore, it is very
important for the survival of the organization to invest in the continued development
and education of the organization (Nadeem, Khawaja, Beg, Naeem, & Majid, 2013).
The aim of the training is to improve the abilities and behaviour of the employees. The
pieces of training are provided to employees so they can improve their skills for the
organizations. The knowledge and skills of the employees are widened because of the
training programs of the organization. It develops confidence among the employees,
and they become motivated to perform their tasks to achieve organizational goals and
objectives. The training of employees is reported to have a significant impact on the
motivation of the employees. As a result, the employees who are motivated are more
enthusiastic about working for the success of the organization by achieving their
personal tasks (Ozkeser, 2019). Increased level of motivation and improved
performance is the outcome of the training and education program. These programs are
very vital for the accomplishment of organizational goals. The employees become
more motivated when they are involved in the training and development programs. As
a result, they can achieve organizational as well as personal goals effectively
(Hanaysha & Hussain, 2018).
Below are given the hypotheses of the present study
H1: Employee Motivation and Employee Loyalty are significantly related to each other.
H2: Education & Training and Motivation are significantly related to each other.
H3: Internal communication and Employee Motivation are significantly related to each
other.
H4: Organizational Culture and Employee Motivation are significantly related to each
other.
H5: Employee Motivation is a significant mediator between Education & Training and
Employee Loyalty.
H6: Employee Motivation is a significant mediator between internal communication
and Employee Loyalty.
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H7: Employee Motivation is a significant mediator between Organizational Culture

and Employee Loyalty.
Following framework is developed from above mentioned hypotheses
Organizational
culture
Internal
communication
Employee Employee
motivation Loyalty
Education and
training
Figure 1: Research framework
Materials and methods

In the present research, the quantitative method is adopted to gather the data from the
employers working in the education sector of Indonesia. Researchers have defined the
quantitative approach as the way of collecting the data by using statistical tools. The
analysis is also done by using statistical tools. A probability sampling design was
adopted by using systematic random sampling to reach the respondents. Researchers
have pointed out that random respondents are selected to collect the data by using
random sampling. The data was collected through questionnaires, which were adopted
from past studies. From the distributed questionnaires, a total of 387 usable
questionnaires were received back, having a response rate of 67.18%. The received
questionnaire was entered in SPS for initial analysis like the detection of outliers and
multicollinearity issues. Later PLS 3.2.9 was used for further analysis.
Results
In order to test the model proposed in the present study, Smart PLS 3.2,9 was used.
This tool is used to assess the relationship among the proposed hypothesis. It has two
steps. First step is known as measurement model which is used basically to reliability
as well as validity of the data gathered. The measurement model is also known as outer
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model (Hair, Ringle, & Sarstedt, 2011). Reliability is defined by Sekaran and Bougie
(2010) as the mechanism to check whether the instrument measure the concept which
they are intent to measure on constant basis. On the other hand, validity of the
instrument is defined as the instrument’s ability to measure the concept.
The measurement model of PLS assess the validity of the data through discriminant
validity and internal consistency is used to check the reliability of the data. As per the
criteria of measurement model, the outer loading of items must be more than 0.5
(Wong, 2013). As per the values reported in table 1, this criterion is fulfilled in present
study.
Table 1. Outer Loading

EM ET EL IC OC
EL1 0.848
EL2 0.884
EL3 0.871
EL4 0.838
EM1 0.789
EM2 0.769
EM3 0.785
EM4 0.744
EM5 0.775
EM6 0.746
EM7 0.768
EM8 0.723
ET1 0.855
ET2 0.874
ET3 0.799
IC1 0.899
IC2 0.903
IC3 0.897
IC4 0.821
OC1 0.821
OC10 0.584
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OC2 0.686
OC3 0.671
OC4 0.677
OC5 0.798
OC6 0.833
OC7 0.758
OC8 0.763
OC9 0.788
Note: EL= employee loyalty, ET= education and training, EM= employee motivation, IC=
internal communicatoon, OC= organizational culture
In the next phase, composite reliability and Cronbach alpha are calculated for which
the minimum value should be more than 0.7. On the other hand, the value of AVE
known as average variance extracted must be more than 0.50 (Hair Jr, Matthews,
Matthews, & Sarstedt, 2017). The convergent validity during validity testing shows the
estimate of specific item which a latent variable measure. The AVE calculate the level
of change that a variable catches from the other variables (Henseler, Ringle, & Sarstedt,
2015). Table 2 shows the values of reliability, validity and AVE in present study.
Table 2. Reliability
Cronbach's rho_A Composite Average Variance Extracted
Alpha Reliability (AVE)
EM 0.897 0.901 0.918 0.582
ET 0.796 0.797 0.881 0.711
EL 0.883 0.884 0.919 0.741
IC 0.903 0.908 0.932 0.775
OC 0.907 0.911 0.924 0.550
From the values mentioned in table above, it is evident that the measurement model is
reliable. The values of AVE in present study are more than 0.5 whereas CR and
Cronbach Alpha are also more than 0.70 (Hair Jr, Sarstedt, Hopkins, & Kuppelwieser,
2014). These figures are shown in Table 3.
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Table 3. Discriminant Validity

EM ET EL IC OC
EM 0.763
ET 0.488 0.843
EL 0.477 0.657 0.861
IC 0.432 0.311 0.369 0.880
OC 0.366 0.345 0.272 0.242 0.742
Figure 2 shown below also highlighted the measurement mdoel that show the loadings
of the items. All the items have more 0.70 loading values that is indication of valid
convergent validity.
Figure 2: Measurement model
The next stage is to measure the discriminant validity of the data. For a data,
discriminant validity is confirmed when the loading of the item is more than own
variable then the remaining variables. Therefore, Fornell and Larcker (1981) procedure
was adopted in present study for the assessment of discriminant validity through the
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difference of AVE value’s square root of every variable which must be more than the
values obtained as the correlation of other values. Table 3 above shows the criteria is
fulfilled in present study and shows that discriminant validity is met in present study.
On the basis of above results, it is evident that measurement model is valid.
The next stage is to assess the structural model which in this study is used to analyse
the direct as well as mediation results. For this purpose, bootstrapping procedure is
adopted using subsamples of 500. One tail test is applied for which the minimum value
if T must be more than 1.645 for the hypotheses to be accepted. Table below shows the
direct results of present study. These are shown in Table 4.
Table 4. Direct Results

Beta SD T Value P Values Decision
H1 EM -> EL 0.477 0.049 9.842 0.000 Supported
H2 ET -> EM 0.338 0.060 5.672 0.000 Supported
H3 IC -> EM 0.283 0.056 5.026 0.000 Supported
H4 OC -> EM 0.181 0.046 3.908 0.000 Supported
From the above table, it is revealed that the EM and EL have positive significant
relationship supporting H1 (Beta=0.477, t= 9,842). Additionally, ET and EM are also
statistically significant positively, supporting H2 (Beta= 0.338, t= 5.672). Furthermore,
H3 is also supported because of positive significant result of IC and EM (Beta=0.283,
t= 5.026). In the end, H4 is also supported as relationship of OC and EM are also
positively significant (Beta =0.181 and t=3.908).
Table 5. Indirect Results

Beta SD T-Value P Decision
Values
H5 ET -> EM -> EL 0.161 0.039 4.166 0.000 Supported
H6 IC -> EM -> EL 0.135 0.031 4.397 0.000 Supported
H7 OC -> EM -> 0.086 0.023 3.684 0.000 Supported
EL
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From the table 5 it is evident that EM mediates significantly between, ET, IC, OC and
EL, supporting H5, H6 and H7. Thus, all indirect hypotheses of present study are also
supported.
Figure 3: Structural Model

In the end, study assessed the R square of the present study. R square is calculated to
check the variance caused in dependent variable as a result of independent variables.
According to Cohen (1988) 0.02 is weak, 0.13 is considered as moderate and 0.26 is
considered as substantial. R square values if present study is mentioned in table 6.
Table 6. R Square
R Square
EM 0.353
Employee Loyalty 0.228
Note: EL= employee loyalty, EM= employee motivation
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Result discussions
This study proposed four direct and three mediating hypotheses. The study proposed a
positive relationship between Employee motivation and employee loyalty as H1. The
results demonstrate that both EM and EL are positively significant. Thus, H1 is
supported. This finding is in line with the outcomes of Ahmed, Rehman, and Amjad
(2013) who also examined and found that the job satisfaction motivate the employees
that could enhance their loyalty. On the other hand, H2 stated that there is a positive
relationship between ET and EM. The findings of the present study support the claim,
and H2 is supported. These outcomes are matched with the findings of Lis and
Szczepanska-Woszczyna, (2015) who also exposed that employee motivation can be
achieved by best practices of HRM such as training. Later, H3 proposed a positive
relationship between IC and EM. The results show a significant positive relationship
supporting H3 and these outcomes supported by the study of Azman, Afiqah, Madi,
and Huda (2013) who also exposed that HR practices has motivated the employees.
Furthermore, H4 is also supported by claiming a positive relationship between OC and
EM. In the end, EM mediates significantly among OC, IC, ET and EL, supporting H5,
H6 and H7 and these outcomes are similar to the outcomes of the Kot-Radojewska and
Timenko (2018) who also exposed that the employee motivation could effects the
organizational culture effects on HR practices and employee loyalty. The direct results
of the present study are also in line with the findings of (Chitrao, 2014; Ozkeser, 2019).
Conclusion and recommendations

Employees are an asset to the organization. The education industry is very competitive
in the international market. Since last year, the Indonesian education industry has
performed very well. But employee loyalty is the key which can improve their
performance. For this purpose, they must focus on different HR factors to motivate the
employees. The findings of the present study show that decision-makers of the
education sector should focus on HR factors like organizational culture and training &
development in order to positively impact employee motivation. Moreover, internal
communication among employees is critical as well to shape the employee motivation
positively. This study provide the guidance to the regulators while formulating the
regulations related to the employee motivation and employee loyalty that could
enhance the organizational performance. The present study also helpful for the
upcoming studies who want to examine this area in future. The results are generalized
into the Indonesia education sector and they could improve their education practices
that are related to the employee motivation and loyalty.
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There are a few limitations in the present study as well. This study is conducted in the
education sector. This model can bring interesting results to the IT sector of India.
Moreover, it is a cross-sectional study; therefore, a longitudinal study is also
recommended. In the end, moderation of trust can be an important HR factor in this
variable. The findings of the present study are helpful for the policymakers of HRM
and education sectors to motivate their employees.
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CZYNNIKI MOTYWACYJNE I HRM ZWIĄZANE Z LOJALNOŚCIĄ

PRACOWNIKA
Streszczenie: Lojalność pracowników jest istotnym czynnikiem sukcesu organizacji i zyskała

intencje znanych na całym świecie badaczy i regulatorów. Dlatego podstawowym celem
niniejszego badania było zbadanie roli edukacji i szkoleń, komunikacji wewnętrznej, kultury
organizacyjnej i motywacji pracowników dla lojalności pracowników. W niniejszym
opracowaniu oceniano również mediację motywacji pracowników. Dane są zbierane od
pracowników indonezyjskiego sektora edukacji przy użyciu systematycznego losowego
pobierania próbek. Wskaźnik odpowiedzi użytkowej w 67,18%. Dane są analizowane za
pomocą PLS 3.2.9. Wyniki pokazały, że istnieje pozytywny związek między edukacją
i szkoleniami, komunikacją wewnętrzną, kulturą organizacyjną, motywacją i lojalnością.
Dodatkowo potwierdza się pośrednicząca rola motywacji. Wyniki badania są pomocne dla
praktyków ZZL i decydentów w opracowaniu strategii budowania lojalności pracowników.
Badanie to wypełnia lukę pomiędzy ograniczonymi badaniami dotyczącymi lojalności
pracowników w sektorze edukacji.
Słowa kluczowe: lojalność pracowników, motywacja, komunikacja, szkolenia, Indonezja
激励和人力资源管理因素与员工忠诚度有关
摘要：员工忠诚度是组织成功的重要因素，并已获得全球知名研究人员和监管机构的意图。
因此，本研究的基本目的是检验教育和培训，内部沟通，组织文化和员工激励对员工忠诚
度的作用。此外，本研究还评估了员工动机的调解。数据是使用系统随机抽样从印度尼西
亚教育部门的工人那里收集的。可用响应率为 67.18％。使用 PLS 3.2.9 分析数据。结果表
明，教育与培训，内部沟通，组织文化，动机和忠诚度之间存在正相关关系。此外，动机的
中介作用也得到了证实。该研究结果有助于人力资源管理从业者和决策者制定使员工忠
诚的策略。这项研究填补了有关教育部门员工忠诚度的有限研究之间的空白。
关键词：员工忠诚度，动机，沟通，培训，印度尼西亚
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Motivation and HRM Factors Relation

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POLISH JOURNAL OF MANAGEMENT STUDIES 2020

Nadeak B., Naibaho L. Vol.22 No.2

MOTIVATION AND HRM FACTORS RELATION TO THE

loyalty of the employees is the outcome of organizational commitment and motivation

A number of studies are conducted to assess the effect of organizational culture on

H7: Employee Motivation is a significant mediator between Organizational Culture

Figure 1: Research framework

Materials and methods

Table 1. Outer Loading

Table 3. Discriminant Validity

Figure 2: Measurement model

Table 4. Direct Results

Table 5. Indirect Results

Figure 3: Structural Model

Conclusion and recommendations

CZYNNIKI MOTYWACYJNE I HRM ZWIĄZANE Z LOJALNOŚCIĄ

Streszczenie: Lojalność pracowników jest istotnym czynnikiem sukcesu organizacji i zyskała

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