The Effect Of Application Of Good Corporate Governance On Employee Performance At PT Perkebunan Nusantara IV (Persero) Bahbutong

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The Effect of Application of Good Corporate Governance on Employee Performance at PT Perkebunan Nusantara IV (Persero) Bahbutong

Introduction

Good Corporate Governance (GCG) is a set of principles and practices that aim to promote transparency, accountability, and fairness in the management of a company. In recent years, there has been a growing recognition of the importance of GCG in improving employee performance and overall organizational success. This study aims to investigate the effect of the application of GCG on employee performance at PT Perkebunan Nusantara IV (Persero) Bahbutong, a leading company in the palm oil industry.

Background

PT Perkebunan Nusantara IV (Persero) Bahbutong is a state-owned enterprise that plays a significant role in the Indonesian palm oil industry. The company has a large workforce and operates in a highly competitive market. In recent years, the company has faced challenges in maintaining high employee performance and productivity. In response to these challenges, the company has implemented various initiatives to improve its GCG practices.

Methodology

This study uses a quantitative approach to investigate the effect of GCG on employee performance. The population of this study consists of all employees of PT Perkebunan Nusantara IV (Persero) Bahbutong. A random sampling technique was used to select 91 employees as samples for this study. The data was collected through a survey questionnaire that was administered to the selected employees.

Data Analysis

The data was analyzed using descriptive analysis and simple regression. The simultaneous significant test (F test) and the coefficient of determination (R²) were used to examine the relationship between GCG and employee performance. The results of the analysis show that the R² value is 0.136, which means that 13.6% of employee performance variables can be explained by the application of GCG.

Discussion

The results of this study suggest that the application of GCG has a positive impact on employee performance. The study found that employees who work in a company with good GCG practices tend to have higher work motivation and productivity. This is because GCG creates a more transparent, accountable, and participatory work environment, which leads to increased employee engagement and motivation.

However, the study also found that other factors, such as promotion, compensation, and work assessment, contribute to 86.4% of employee performance that cannot be explained by GCG. This suggests that companies need to pay attention to these other factors in order to create a good balance in the work environment.

Conclusion

In conclusion, this study provides evidence that the application of GCG has a positive impact on employee performance. However, it also highlights the importance of considering other factors that influence employee performance. Companies need to integrate all these aspects in order to create an optimal work environment that is beneficial for both employees and the company.

Recommendations

Based on the findings of this study, the following recommendations are made:

  1. Improve GCG practices: Companies should continue to improve their GCG practices in order to create a more transparent, accountable, and participatory work environment.
  2. Consider other factors: Companies should also consider other factors that influence employee performance, such as promotion, compensation, and work assessment.
  3. Integrate all aspects: Companies should integrate all these aspects in order to create an optimal work environment that is beneficial for both employees and the company.

Limitations

This study has several limitations. Firstly, the study only examined the effect of GCG on employee performance and did not consider other factors that may influence employee performance. Secondly, the study only used a random sampling technique to select employees as samples, which may not be representative of the entire population.

Future Research

Future research should aim to investigate the effect of GCG on employee performance in other companies and industries. Additionally, future research should also examine the impact of other factors that influence employee performance, such as promotion, compensation, and work assessment.

References

  • [List of references cited in the study]

Appendix

  • [Appendix containing additional data and information]

Table of Contents

  1. Introduction
  2. Background
  3. Methodology
  4. Data Analysis
  5. Discussion
  6. Conclusion
  7. Recommendations
  8. Limitations
  9. Future Research
  10. References
  11. Appendix
    Frequently Asked Questions (FAQs) about the Effect of Good Corporate Governance on Employee Performance

Q: What is Good Corporate Governance (GCG)?

A: Good Corporate Governance (GCG) refers to a set of principles and practices that aim to promote transparency, accountability, and fairness in the management of a company. It involves the implementation of policies and procedures that ensure the company is managed in a responsible and ethical manner.

Q: How does GCG affect employee performance?

A: The application of GCG has a positive impact on employee performance. It creates a more transparent, accountable, and participatory work environment, which leads to increased employee engagement and motivation. This, in turn, results in higher productivity and better performance.

Q: What are the key principles of GCG?

A: The key principles of GCG include:

  1. Transparency: The company should be transparent in its operations and decision-making processes.
  2. Accountability: The company should be accountable for its actions and decisions.
  3. Fairness: The company should treat all employees fairly and without bias.
  4. Participation: The company should involve employees in decision-making processes.
  5. Responsibility: The company should take responsibility for its actions and decisions.

Q: How can companies implement GCG?

A: Companies can implement GCG by:

  1. Establishing a code of conduct: The company should establish a code of conduct that outlines the principles and values of the company.
  2. Implementing policies and procedures: The company should implement policies and procedures that ensure transparency, accountability, and fairness.
  3. Providing training and development: The company should provide training and development opportunities for employees to ensure they understand the principles and practices of GCG.
  4. Encouraging employee participation: The company should encourage employee participation in decision-making processes.
  5. Monitoring and evaluating: The company should monitor and evaluate its GCG practices to ensure they are effective.

Q: What are the benefits of GCG?

A: The benefits of GCG include:

  1. Improved employee performance: GCG leads to increased employee engagement and motivation, resulting in higher productivity and better performance.
  2. Increased transparency: GCG promotes transparency in the company's operations and decision-making processes.
  3. Improved accountability: GCG ensures the company is accountable for its actions and decisions.
  4. Enhanced reputation: GCG enhances the company's reputation and credibility.
  5. Better decision-making: GCG leads to better decision-making processes.

Q: What are the challenges of implementing GCG?

A: The challenges of implementing GCG include:

  1. Resistance to change: Employees may resist changes to the company's policies and procedures.
  2. Lack of resources: The company may not have the necessary resources to implement GCG.
  3. Cultural barriers: The company's culture may not be conducive to GCG.
  4. Lack of understanding: Employees may not understand the principles and practices of GCG.
  5. Monitoring and evaluation: The company may struggle to monitor and evaluate its GCG practices.

Q: How can companies measure the effectiveness of GCG?

A: Companies can measure the effectiveness of GCG by:

  1. Conducting surveys: The company can conduct surveys to measure employee engagement and motivation.
  2. Analyzing data: The company can analyze data to measure the impact of GCG on employee performance.
  3. Monitoring and evaluating: The company can monitor and evaluate its GCG practices to ensure they are effective.
  4. Conducting audits: The company can conduct audits to ensure compliance with GCG principles and practices.
  5. Seeking feedback: The company can seek feedback from employees and stakeholders to ensure GCG is effective.