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ISBN : 978-602-6697-30-1
SITUATIONAL LEADERSHIP AND COMPETENCY TOWARDWORK
MOTIVATION AND ITS IMPACT ON EMPLOYEE PERFORMANCE OF
SERVICE COMPANY WORKING ATWELL INTERVENTION DIVISION OF
PERTAMINA HULU MAHAKAM
1) 2) 3) 4) 5)
Titi Laras ,Nindyo Cahyo Kresnanto ,Rini Raharti ,Nurwiyanta ,Adi Surahman ,Kholifah
6)
Fil Ardhi
1) Universitas Janabadra Yogyakarta, Indonesia / Email:titilaras07@gmail.com
2) Universitas Janabadra Yogyakarta, Indonesia / email: nindyo_ck@staff.janabadra.ac.id
3) Universitas Janabadra Yogyakarta, Indonesia / email:riniraharti@gmail.com
4) Universitas Janabadra Yogyakarta, Indonesia / email:nurwiyanta@gmail.com
5) Universitas Janabadra Yogykarta, Indonesia / email:adisurahman5758@gmail.com
6)Universitas Muhammadiyah Yogyakarta, Indonesia / Email:kholifahfilardhi@gmail.com
ABSTRACT : The aims of this research to know and obtain empirical evidence of: (1) simultaneous
influence between situational leadership and competence on work motivation; (2) partial influence
between the situational leadership and competence on employee motivation; (3) simultaneous influence
between situational leadership and competence on the performance; (4) Partial influence between
situational leadership and competence on the performance; (5) the effect of work motivation on the
performance of employees; (6) situational leadership, competence and motivation influence to the
performance of employees.The data source used is primary data and secondary data. Type of sampling
technique using probability sampling with proportional stratified random sampling method. The
samplesare 210 employees. The results: (1). Situational Leadership and Competence Leadership
variables simultaneously affect the work motivation; (2). Situational Leadership has no effect partially
on work motivation; (3). The competence partially affects the employee's work motivation; (4).
Situational Leadership and Competence simultaneously have a positive effect on the performance of
employees; (5). Situational leadership partially has no effect on the performance of employees; (6).
Competence partially affects the Performance of employees; (7). Work motivation affects the
performance of employees. (8). Situational Leadership, Competence, and Work Motivation
simultaneously affect the Performance of Employees.
Keyword: Situational Leadership, Competence, Work Motivation, Employee Performance
INTRODUCTION
In the draft of State Budget (RAPBN) 2018, the government is targeting oil lifting of 800 thousand
barrels per day (bpd). This figure is below the 2017 target of 815 bpd and 820 bpd in 2016. For
medium-term targets, oil lifting even reaches only 651-802 bpd by 2021. While gas lifting in 2018 is
set at 1.2 barrels of oil equivalent per day (boepd) or up from the previous year at 1.15 boepd. The
domestic lifting gas target has also declined since 2015. This condition is a challenge especially for
companies engaged in Upstream Oil and Gas (Kemenkeu RI, 2017). Referring to business as usual
performance, as stated in the Work Program and Budget (WP & B) proposed by a number of
Contractor Cooperation Contract (KKS), the level of production capability in 2017 is still below the
target of only 808 thousand bpd oil and at 1.15 million boepd gas (SKK Migas, 2017). The high rate of
oil and gas achievement above the average capacity level of PSC Contractors becomes a mild task for
all elements that play a role in the Upstream Oil and Gas Industry.
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ISBN : 978-602-6697-30-1
Table 1
TARGET ACHIEVEMENT OF THE NUMBER OF PRODUCTION IN EACH
KKS CONTRACTOR, YEAR 2017
No. KKS Contractor Target Achievment
(in thousand of bph)
1. PT Chevron Pacific Indonesia 228,9
2. Mobil Cepu Ltd 200
3. PT Pertamina EP 84,2
4. TOTAL E&P Indonesie 52,8
5. PHE ONWJ 36,5
6. CNOOC SES Ltd 31,3
7. Chevron Indonesia Company 17,7
8. ConocoPhilips 17,4
No. KKS Contractor Target Achievment
(in thousand of bph)
9. PC Ketapang Ltd 15,6
10. Petrochina International Jabung Ltd 14,4
11. Kontraktor KKS Lain 115,9
Source: SKK MIGAS 2017
Pertamina's full commitment to sustainability of production in the working area of Mahakam is
also evidenced by the budget disbursed in 2018 for exploration, development and production activities.
Based on data from SKK Migas, as of November 2017, the Working Area of Mahakam produces oil
and condensate of 52 thousand barrels of oil per day and 1.360 million cubic feet of natural gas per day.
The potential in the Mahakam block is still promising. The proven reserves as of January 1, 2016 are
4.9 TCF of gas, 57 million barrels of oil and 45 million barrels of condensate. The management of
Mahakam Working Area by Pertamina makes Pertamina as a contributor of more than 30% of national
oil and gas production in 2018 (Pertamina News-Room, 2018). The 2018 Working Program and
Budget Agreement (SKP) by SKK Migas targets Pertamina Hulu Mahakam production of 42.01
thousand barrels of oil per day and 916 mmscf of gas per day. This figure is achieved by drilling
development wells of 69 wells, 132 workover wells, 5.623 repair wells and POFD 5 oil and gas fields
in Mahakam Working Area (Pertamina News-Room, 2018). Historically, the working contract of
Mahakam Working Area was first signed by Total E & P Indonesie and Inpex on October 6, 1966 for a
period of 30 years. Total E & P Indonesie gained participation from Inpex by the end of 1970 and
determined as an operator. In 1991, Total E & P Indonesie obtained a 20-year contract extension until
March 30, 2017. The Mahakam's contract has an additional period of 9 months until December 31,
2017. This increase is due to the LNG sales contract extended until December 31, 2017. In journey, this
French company also listed as the largest gas producer in Indonesia and supplying about 60% of the
Bontang LNG plant needs. The oil and gas production of the Mahakam block started from the Bekapai
field in 1974. Since the success of the first exploration, oil and gas were successively found in seven
other fields namely Handil (1974), Tambora (1974), Tunu (1977), Peciko (1983), Sisi (1986), Nubi
(1992), and South Mahakam (1996) located in Kutai Kartanegara District, East Kalimantan (Energia,
2018). The big challenge must be faced by Pertamina Hulu Mahakam.
Mahakam block is a mature field that must be developed in a special way, because this block has
different reservoir characteristics than most of the field. Appropriate technology should continue to be
developed by searching and learning different things as well as innovating for production reliability.
The technology and solid team coordination is an answer to help maintain and increase oil and gas
production in the Mahakam Block. Another challenge in today's digital era, we must accept the fact that
the conditions around us are increasingly uncertain. One of the challenges that must be faced in the
business world is VUCA world. VUCA which stands for Volatility, Uncertainty, Complexity and
Ambiguity is a picture of the situation in the business world today. Volatility is a very rapid dynamics
of change, Uncertainly defined as a lack of predictability of issues and events that occur, Complexity is
the disruption and chaos that surrounds every organization. Improving the quality of Human Resources
within the Company of Pertamina Hulu Mahakam is not only done to employees of Pertamina Hulu
Mahakam company itself, but also to employees of the Contractor company (Service Company)
working for Pertamina Hulu Mahakam in accordance with the standards set by the company .
Contracting companies (service companies) are frontliners as job executors, especially under the Well
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ISBN : 978-602-6697-30-1
Division of Intervention. The Company Contractor (Service Company) is still active in the year 2017 as
follows:
Table1.
CONTRACTOR COMPANY(SERVICE COMPANY)UNDER
WELL INTERVENTION DIVISION
No. Company Name Unit Employee number in PHM area
1 Elnusa - Slickline 150
- Snubbing
- Coil Tubing
- Well Testing
2. Nesitor - Slickline 125
3. Schlumberger - Slickline 95
- Electricline
4. Adimas - Well Testing 45
5. Baker - Electricline 22
Jumlah 437
Source: Technical Admin TTH, 2017.
Competence is a dimension of behavior that exists behind competent performance that shows
how people behave when they perform their role well. Chompetence is a basic characteristic of
personnel who become the determinants of success or failure to do a job or in certain situations. On the
other hand, the company's demands on employees must also be balanced with the increased
competence required. With situational leadership and adequate competence improvement to employees
are expected to provide motivation and improve the performance of each employee increased.
Motivation that exists when a person will realize a behavior directed towards the goal of achieving the
goal of satisfaction. So motivation is not something that can be observed, but it is something that can be
inferred because of a visible behavior.
Several previous studies that examine the factors that affect employee motivation and
employee performance have been done. Leadership and competence are found to be related to
employee work motivation. The better the leadership factor, the higher the employee's performance can
be expected. The higher the employee competency, the higher the employee's performance
(Widyatmini and Hakim, 2008). Research conducted by Primanda and Azzuhri (2014), showed that
work motivation significantly influence to employee performance. While from research Agustina
(2010), From result of analysis which have been done, intrinsic motivation and extrinsic motivation
have real effect to employee performance. Based on the research background as described previously,
the problem in this research can be formulated as follows:
a. How is the simultaneous influence between situational leadership and competence on employee
motivation of the Contractor (Service Company) working under the Well Intervention division of
Pertamina Hulu Mahakam?
b. What is the partial influence between situational leadership and competence on employee
motivation of the Contractor (Service Company) working under the Well Intervention division of
Pertamina Hulu Mahakam?
c. How is the simultaneous influence between situational leadership and competence on the
performance of Contractor employees (Service Company) working under the Well Intervention
division of Pertamina Hulu Mahakam?
d. What is the partial influence between situational leadership and competence on the performance of
Contractor employees (Service Company) working under the Well Intervention division of
Pertamina Hulu Mahakam?
e. What is the effect of working motivation on the performance of Contractor's employees (Service
Company) working under the Well Intervention division of Pertamina Hulu Mahakam?
f. What is the influence of situational leadership, competence and motivation on the performance of
Contractor employees (Service Company) working under the Well Intervention division of
Pertamina Hulu Mahakam?
Literature Review And Hypothesis
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ISBN : 978-602-6697-30-1
Figure:1.The Grand Theory
The influence of Situational Leadership toward Working Motivation
Situational leadership is a leadership activity in its efforts to influence, encourage, guide, direct
and mobilize employees by approaching the particular situation and maturity level of subordinates who
led. The situational leadership theory developed by Robert House called The Pathgoal theory in the
Sujak quote (1990: 17) suggests the "hope" theory in motivation which says that people will be
motivated by two expectations of the ability to do a task and a sense of belief that if the employee can
do a good job of obtaining a valuable gift for himself. Situational leadership uses the same two
dimensions of leadership as Fiedler recognizes: the behavior of tasks and relationships. But Hersey and
Blanchard (1998: 13) go so far as to assume each dimension as high or low and then combine them into
four specific leader behaviors: telling, selling, participating, delegating ). So leadership in the Hersey
and Blanchard theories puts forward the situational leadership style of leaders who have adapted their
leadership style to the needs of the situation. According to previous research Syamsuddin (2016) and
Sinollah (2014), both studies show that situational leadership styles are instructional, consultative and
delegates have a positive and significant influence on employee work motivation. From the description
above it can be concluded that Situational Leadership will affect the growth of employee work
motivation. Employees need motivations that come from outside of himself which of course very need
to be considered by a leader. The leader of a company in motivating employees should be able to
provide equipment, create a good working environment, provide employee opportunities to develop a
career, enabling employees to improve their morale, which is the driving force to motivate employees
in directing all their potential.
The influence of Competency toward Working Motivation
Competence is a basic characteristic of the individual casually associated with the motivation
to change or get a better achievement. Moving from this concept then it must be distinguished between
competent and competency. Competent refers to one's work field while competency refers to the
underlying behavioral dimension of competent performance. The result of Ngatemin and Arumwanti's
research on the Influence of Competence on the motivation of hotel worker in north sumatera shows
that the competence has significant effect on employee's motivation. Research by Rahman et al (2014)
also showed that Competence significantly influence the performance of factory employees in
PT.Jember Indonesia. Based on the results of these studies indicate that the competence of employees
is a manifestation of all forms of ability possessed. Employees will be motivated if the competencies
held in accordance with what is expected by the company. These competencies will have an impact on
the level of confidence in work. Employees with high competence will tend to show their ability
through achievement in the company.
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