The Impact of Competence and Work Environment on Employee Motivation and Performance in The Financial and Asset Management Division

Abstract

The Regional Financial and Asset Management Agency is a regional financial management technical institution that is responsible for creating a regional financial management system that is synergized and integrated with all Regional Apparatus Organizations (OPD) aimed at improving the quality of asset data that supports regional balance sheets. The not yet optimal performance of the Regional Financial and Asset Management Agency at the Bondowoso Regency Government, which is famous for producing coffee with the aim of exporting, needs to be done with the aim of improving employee performance. The novelty of this research is the improvement of performance at the Regional Financial and Asset Management Agency by considering employee competence, work environment and employee motivation. This study aims to determine the impact of employee competence, work environment on work motivation and employee performance at the Regional Financial and Asset Management Agency of Bondowoso Regency. The number of employees at the Regional Financial and Asset Management Agency of Bondowoso Regency is 61 employees, all of which will be sampled in this study. Thus the sampling technique in this study is the saturated sample technique. The analysis technique used is the Structural Equation Model (SEM) using WarpPLS 5.0. The results of data analysis show that the variables of employee competence, work environment and work motivation have a significant effect on employee performance. Variables of employee competence and work environment have a significant effect on employee work motivation. Work motivation has a significant effect on employee performance.