Abstract

This study examines the impact of employee competence and discipline on performance in a company in Pamekasan Regency. Although previous research has linked competencies to performance, the specific interaction between discipline and competencies and their combined effect on performance is less explored. This study aims to fill this knowledge gap by assessing how competence directly affects performance and how it affects employee discipline which in turn affects performance. Using structural equation modeling on data from 39 respondents, findings show that competence significantly improves performance directly, and also indirectly through improved discipline. However, the direct effect of competence on performance is stronger than its indirect effect through discipline. These insights emphasize the importance of integrating a competency-based approach with a disciplined work environment to optimize employee performance. This study contributes to the competency-based performance literature and offers practical implications for improving employee productivity through competencies and targeted discipline.

Highlights:

• Direct Impact of Competence: Competence significantly enhances employee performance directly, highlighting its pivotal role in productivity.
• Role of Discipline: Discipline not only supports but also mediates the relationship between competence and performance, indicating its crucial function in organizational success.
• Comparative Influence: The direct influence of competence on performance is more pronounced than its indirect effect through discipline, suggesting primary focus on competence development for immediate performance gains.

Keywords: Competence, Discipline, Employee Performance, Structural Equation Modeling

Introduction

In an era like the current one, performance is considered very important for the continuity of company productivity activities, both companies in the industrial, trade and service sectors. Companies will of course try to achieve the goals that have been set, but it is important to know that the success of a company in its activities in achieving the goals that have been set does not only depend on the technological and operational excellence that the company has, but also depends on aspects of the human resources it has. Speaking of human resources, this is a crucial topic that is inextricably linked to any organization, be it corporate or institutional. The development of the company is also largely determined by its human resources. Human resources are essentially the people who work for an organization as organizers, thinkers, and mover-movers in order to accomplish organizational goals.

An organization's strategic use of human resources determines whether or not it is successful in reaching its objectives [1]. The performance of an organization is influenced by the type and quantity of its human resources. All organizations strive to enhance employee performance with the expectation that the company's objectives will be met. Managing all human resource-related operations inside a business in order to meet predefined goals is known as performance management [2]. Organizations can use these activities to better match their goals with those of their teams and individuals, enhance performance, inspire commitment, uphold core values, enforce discipline, and support cultural initiatives. In the opinion of [3] indicates that human resource planning—which includes work relations, service employees, work morale and attitudes, employee counseling, wage administration, work force quality, quality determination, skills list, work turnover, internal changes, and employee research—cannot be separated from performance management.

Human resources certainly have differences from each other. As a result, it is crucial for businesses to understand the potential of every employee they employ. Naturally, the business needs to be able to assess if each task assigned to its staff members is within the company's human resource capacity. Because performance is the capacity to complete tasks and meet success criteria set by the organization for workers in line with the responsibilities assigned to each worker. The execution of the prepared plan is known as performance. Human resources carry out work implementation with a high level of expertise, commitment, and discipline. In this case, of course, the role of a company is very important because being able to respect and treat human resources will influence their performance in carrying out their work.

PT. Branta Indo Niaga is a provider and exporter of frozen fish products located in Surabaya and Pamekasan. The frozen fish products produced are made from fresh Tuna and other types of fish obtained from ports in Indonesia. Commitment of PT. Branta Indo Niaga to provide quality fresh fish, cannot be separated from the role of each company member in planning, implementing and controlling the quality of quality fresh products with various effective, efficient management and production methods, employee discipline and employee competence.

The address of PT. Branta Indo Niaga is Jl. Raya Pamekasan Sampang KM.10. Given the drop in the company's sales and output, it appears that this particular company is having issues with staff performance. The following is the annual production data of PT. Branta Indo Niaga in the last 4 years:

Figure 1.Production of PT. Branta Indo Niaga Fiscal Year 2021-2023

Based on the production level table of PT. Branta Indo Niaga shows that the production and sales of PT. Branta Indo Niaga in the last 3 years did not reach the target and decreased, namely in 2021 production was 97,900 KG, fish out was 95,000 KG and achievement was 97.9% of the production target, in 2022 production was 95,000 KG, fish out was 93,400 KG and achievement was 95% of the production target and in 2023 production will be 90,000 KG, fish will come out at 85,000 KG and achievement will be 90% of the production target. Of course, this is based on human resources/employees who are not good at utilizing company resources, due to the lack of performance of employees.

This employee performance problem is based on a review of the company, and of related employees, explaining that employee competence is still not able to produce quality work because they have a low level of efficiency. [4] elucidate that the education level of PT. Branta Indo Niaga staff reflects competency, It is a combination of duties, abilities, dispositions, and an understanding of human resources to do job tasks mandated by the company. The following presents the frequency of educational background of PT. Branta Indo Niaga employees:

Figure 2.Frequency of Employee Educational Background PT. Branta Indo Niaga

Competency and work discipline are two of the many variables that might affect performance. According to [5] , high levels of competence possessed by employees will create superior performance, because competence plays a role as input, production and process in a job. As input, competency is the capacity or potential that emerges within a person to solve a problem well. Capacity here consists of knowledge, skills and behavior. Competency input can take two forms, namely abilities obtained from learning, practice or experience, and abilities acquired within the individual that influence him strongly.

Methods

According to the method, this type of research is quantitative research (causal relationship), which is research into the cause and effect relationship of the independent variable (independent) and the dependent variable (dependent). The population of interest for this study consisted of all 39 employees of PT. Branta Indo Niaga. The sampling technique that will be used in this research is saturated/census sampling, because the population size is not greater than 100 respondents. According to [6] , Saturated sampling is a sampling technique that is used when the population is small enough to sample every member of the population. So the author took all respondents from the population at PT. Branta Indo Niaga, namely 39 respondents / employees. This study's data analysis method makes use of partial least squares (PLS). Variance- or component-based structural equation modeling is the methodology used in PLS, a structural equation modeling (SEM) model.

Figure 3.Conceptual Framework

Results and Discussion

Figure 4.Data Outliers

From table 3, According to the respondent data, the maximum distance value is 22,078, which is less than the maximum distance outlier that was stated (32.909). As a result, the data can be considered high-quality and can be used for further study. processed one more time using a sample consisting of 39 participants.

Figure 5.Outer Loading

An additional tool for assessing the validity of indicators is the cross loading table. This table shows that an indicator is considered valid if its factor loading value on each variable is greater than its factor loading on the other variables, and invalid if it is less than the indicator of other variables.

Figure 6.Average Variances Extracted (AVE)

If there is a correlation between an indicator and the variable that is more than 0.5 and/or the p value is significant, then the indicator is considered real and a measure of the variable. We call this factor loading. Convergent validity is satisfied for indicators on the Competence variable (X1 = 0.689; X2 = 0.635; X3 = 0.699) as well as for indicators on other variables (> 0.5), per Table 4 loading factor. According to Table 4's study results, every indicator of the research variables—discipline, employee performance, and competence—has a loading factor larger than 0.5, meaning that each one satisfies the requirements for convergent validity.

Table 4 indicates that convergent validity is met if the significant value (p-Value) for each indicator in the Competence variable (e.g., p-value for X1 = <0.001; other variables) < 0.05. The analysis's findings demonstrate that all of the research variables' indicators—discipline, competence, and employee performance—are significant because their p-values are less than 0.05, indicating that they satisfy the convergent validity requirement.

The value of the average variance extracted (AVE) indicates The substantial indicator variance found in the hidden variable is the next measurement model. Moreover, significant validity for the latent variable is indicated by a convergent AVE value larger than 0.5. By examining the average variance extracted (AVE) value for each construct (variable), reflective indicator variables are displayed. If each construct has an AVE value greater than 0.5, a good model is needed. Table 5 displays the test results. It is valid because the AVE value for the constructs (variables) of competence, discipline, and employee performance is greater than 0.5.

The composite reliability rating serves as a gauge for construct reliability. An indicator is considered reliable if it consistently measures the latent variable and has a composite reliability value more than 0.70. The variable constructs of competence, discipline, and employee performance have composite reliability values larger than 0.7, indicating their reliability, according to test results in Table 6.

Figure 7.Realibilty Test

The bootstrap resampling approach was used to test the hypothesis. The t test statistic is the one that is employed [7] . A model goodness-fit test called the R-Square value is used to evaluate the structural model. The equation between latent variables' R-square value indicates if the inner model has been tested. For employee performance, the coefficient of determination (R2) is equal to 0.675. This suggests that 67.50% of the phenomenon or issue around employee performance can be explained by the model. The remaining percentage (32.50%) is accounted for by mistakes and other factors that are not included in the model, competence and discipline are the only factors contributing to this.

Figure 8.Path Coefficients

From table 7 A path coefficient of 0.565 indicates a substantial positive relationship between competence and discipline, with a p-value 0.015 less than the value of α = 0.10 (10%). Competence therefore substantially improves employee performance, as shown by a path coefficient of 0.285, where the p-value is 0.023 smaller than the value α = 0.10. Discipline, on the other hand, significantly improves employee performance, as evidenced by a path coefficient of 0.322 and a p-value of 0.011 that is lower than the 10% α = 0.10 value.

Figure 9.Inderect Effects

According to Table 8, the impact of competence on employee performance through discipline is 0.087, with a p-value of 0.115 being higher than the α = 0.10 (10%) value. This indicates that the direct influence of competence on employee performance outweighs the indirect influence.

1. The Influence Of Competence o n Discipline

Tests of statistical significance show that the competency variable significantly improves discipline. This suggests that competency is a characteristic that influences work discipline because competent people take their work seriously and have high work discipline when assigned assignments that match their talents. If employees have high competence and are in accordance with their profession, this can lead to high levels of discipline because employees will have a sense of responsibility when employees have expertise in that professional field.

Work discipline and employee competency are two crucial components that are interconnected and support both individual and corporate success. When employees have the knowledge, skills and abilities needed to complete their tasks well, they will feel more confident and motivated to work so they will be disciplined in their work. This sense of self-confidence fosters a sense of responsibility and commitment to work, encouraging them to comply with regulations and complete tasks on time. Competent employees have a better understanding of company expectations and standards regarding performance and behavior. They find it easier to follow established rules and procedures, because they understand the goals and reasons behind them. This minimizes violations and increases compliance with work discipline. Apart from that, employee competency allows them to work efficiently and productively. They are able to complete tasks quickly and accurately, thereby reducing stress and disappointment. This fosters a positive and conducive work environment, where employees feel valued and trusted, thereby increasing discipline and minimizing violations. Work discipline is essentially influenced by employee competency. When employees have the knowledge, skills, and abilities needed to perform well, they will be more motivated, compliant, and committed to company standards. This creates a positive and productive work environment, where work discipline is the main basis for individual and organizational success.

These findings are consistent with the study that was done by [8] that competence has a positive effect on employee work discipline. So the level of discipline is influenced by competence. Apart from that, it is also in accordance with research by [9] which shows that there is a positive and significant relationship so that there is an influence of competency on employee work discipline at the Population and Civil Registry Service of Enrekang Regency.

2. The Influence of Discipline o n Employee Performance

The study's findings indicate that discipline has a considerably favorable impact on worker performance, indicating that it is a factor that is seen to be crucial in determining how well workers perform. thus, an employee's performance will be inversely correlated with their level of work discipline; that is, the higher their discipline, the better [10].

Discipline is an important factor that can significantly influence employee performance. Disciplined employees always arrive on time and attend work according to the specified hours. This shows their commitment to their work and maintaining the smoothness and quality of their performance. Disciplined employees are able to focus on their tasks and avoid distractions while working [11]. They comply with established rules and procedures, so they can complete tasks effectively and efficiently. Disciplined employees comply with the rules and norms that apply in the organization. They are responsible for their duties and work, and always try to achieve the targets they have set. Disciplined employees have a high work ethic and strong work spirit. They are motivated to give their best and strive hard to achieve success in their work. Disciplined employees are able to work well with their colleagues. They respect each other, help each other, and work together to improve their performance. In essence, discipline is a fundamental value that every employee must have. With good work discipline, employees can improve performance, achieve goals, and benefit the organization as a whole [12].

The findings of this study are consistent with earlier research showing that discipline improves worker performance. Research by [13] demonstrates that work discipline has a favorable and substantial impact on employee performance; so, improving work discipline will affect employee performance inside the organization. Research by [14] shows that work discipline has a good level of influence on performance. If the company succeeds in encouraging employees to be disciplined in every task, it is possible that performance will increase. And research by [15] shows that discipline has a significant positive effect on employee performance.

3. The Influence of Competence o n Employee Performance Through Discipline

The study's findings indicate that competence has a stronger direct impact on employee performance than it does on employee performance through an indirect effect obtained through discipline. Workplace discipline and employee competency are two crucial components that improve worker performance and are tied to one another. Competent employees have a better understanding of the expectations and performance standards set by the organization so that this will make employees more disciplined in their work, they are able to translate organizational goals into concrete actions and complete tasks according to the standards that have been set. This minimizes errors and failures, and improves the quality of work results. Employee competencies enable them to manage time and priorities more effectively. They are able to make careful plans, determine task priorities, and complete work on time. This increases work efficiency and productivity, thereby improving overall performance. High employee competency supports the ability to communicate and collaborate well. They are able to convey information clearly and effectively, collaborate with colleagues, and build positive relationships with others. This increases synergy and collaboration within the team, thereby improving employee performance. And in essence, employee competency has a positive effect on work discipline and improves employee performance. Competent employees have a better understanding of performance expectations and standards, are able to manage time and priorities effectively, solve problems appropriately, communicate and collaborate well, and are always willing to learn and develop.The results of this research are in accordance with previous research.

Conclusion

Based on data analysis and discussion of research results, it can be concluded that competence can contribute to discipline, this shows that the higher the competence possessed by an employee, the more disciplined the employee will be. Meanwhile, discipline can contribute to employee performance. This shows that the more disciplined the employee, the more employee performance will increase. Then the influence of competence on employee performance also contributes, this shows that the higher the competence possessed by the employee, the better the employee's performance. Furthermore, the indirect influence of competence on employee performance through discipline is smaller than the direct influence of competency on employee performance.

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