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Journal of Economics and Sustainable Development www.iiste.org 
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) 
Vol.5, No.17, 2014 
Influence of Competency, Knowledge and Role Ambiguity on Job 
Performance and Implication for PPAT Performance 
Yuliandi 
Doctoral Program of Management Science, Economics Faculty of Syiah Kuala University, Aceh, Indonesia 
Email: yuliandisyiah@gmail.com 
Abstract 
This research discusses about the competency, knowledge and role ambiguity on job performance and the 
implications for PPAT performance. The method of research is used the descriptive analysis with using 
purposive sampling. Analysis tool used is SEM run with Lisrel software. This research found that influence of 
competency 0.38 knowledge 0.32, the influence of role ambiguity 0.45 against job performance. Influence of job 
performance on PPAT performance is 0,53. The analysis showed that the positive effect of role ambiguity on job 
performance greater than influence on the attractiveness of competency and knowledge. 
Keywords: Competency, knowledge, role ambiguity, job performance 
111 
Introduction 
Competencies are useful in order to enhance human performance at work (Hoffman 1999). One of the 
most well-known definition of competency and used by many scholars would probably be on the work by 
Boyatzis (1982) where competency was described as underlying characteristics of an individual, which are 
causally (change in one variable cause change in another) related to effective job performance. Therefore a job 
competency may be a motive, trait, skill, aspect of one‟s self-image or social role, or a body of knowledge that 
an individual uses, and the existence and possession of these characteristics may or may not be known to the 
individual (Boyatzis,1982). McClelland (1973) claimed competencies and individual characteristics predicted 
successful job performance. Parry (1998) confirmed that competency correlates with job performance, which can 
be measured and enhanced through training. Similarly, job performance and competency have found to have 
positive relationship by Dhanakumars (2001) and Linders (2001). Similarly study by Heffernan and Flood (2000) 
found there is a positive relationship between competency and job performance while Armstrong (2006) 
suggested that competency could contribute to the high levels of performance between individuals as well as 
organization. Potluri and Zeleke (2009) had conducted a study among the fontliners revealed that most 
employees working at the front desk areas did not demonstrate most of the basic marketing competency 
indicators. 
Further, job performance has always been regarded as important factor in employee management. Job 
performance has been associated with the ability of the individual employees realizing their respective work 
goals, fulfilling expectations as well as attaining job targets and/or accomplishing a standard that are set by their 
organizations (Eysenck, 1998; Maathis & Jackson, 2000; Bohlander et al., 2001). 
Most people will immediately define job performance as what a person does at work. Different stages 
of job as well the complexity of a job can affect the overall performance of the jobholder (Murphy, 1989; 
Ackerman, 1997). This could mean that job performance as a construct can be defined in different ways due to 
the different stages and complexities of the job (Grubb, 1999). Sarmiento and Beale (2007) refer job 
performance as the result of two elements, which consist of the abilities and skills (natural or acquired) that an 
employee possesses, and his/her motivation to use them in order to perform a better job. Campbell et al (1993, 
pg. 40) define performance…“as synonymous with behavior. It is something that people actually does and can 
be observed. By definition, it includes only those actions or behaviours that are relevant to the organization's 
goals and that can be scaled (measured) in terms of each individual's proficiency (that is, level of contribution). 
Performance is what the organization hires one to do, and do well” (Campbell, 1990). Even though there were 
many attempts to introduce various frameworks of performance, Campbell‟s definition of performance has been 
acceptable as the basic definition for performance (Borman et al., 1997; Motowidlo et al., 1997; Schmitt & Chan, 
1998). 
Meanwhile, Campbell‟s (1990) model makes clear distinctions among performance components, 
performance determinants, and the antecedents of performance determinants. Performance components refer to 
the performance dimensions that constitute various parts of the overall job performance. Campbell posited that 
the performance components is a function of three performance determinants which are the declarative 
knowledge, procedural and skills knowledge and motivation (Campbell, 1990; Campbell et al., 1993: pg. 43) . 
These are the direct determinants of performance, which are the focus of this study. 
In detail, declarative knowledge includes knowledge about facts, principles, goals and self- knowledge, 
which represents an understanding of a given task‟s requirements. Procedural knowledge and skill includes 
cognitive skills, psychomotor skills, physical skills, self-management skills, and interpersonal skills. Motivation
Journal of Economics and Sustainable Development www.iiste.org 
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) 
Vol.5, No.17, 2014 
is a combined effect from three choice behaviours: the choice to perform, the level of effort, and the persistence 
of the effort (Campbell et al., 1993). In other words, in order to perform the behaviors in one of the dimensions, 
a person needs to know what to do (absence of ambiguity), how to do it (having the right competency) and 
possess the desire (motivation) to do it. 
Based on the problem, it can be arranged research questions as follows: 
1. What influence of competency of the job performance? 
2. What influence of knowledge to job performance? 
3. What influence of role ambiguity to job performance? 
4. What influence of job performance to the PPAT performance? 
Based on the basis theoretical concepts and the results of previous studies prepared framework 
Job performance 
112 
empirical in this research as in Figure 1. 
Figure 1. Research Model 
Competency 
knowledge 
Role ambiguity 
H1 
H2 
H3 
The formulations of the hypothesis in this research are as follows: 
H1: competency effect job performance positively 
H2: knowledge effect job performance positively 
H3: role ambiguity effect job performance positively 
H4: job performance effect PPAT performance positively 
H4 
PPAT 
performance 
Literature Review 
Competency 
A competency is an individual characteristic that can be measured or counted reliably and that can be shown to 
differentiate significantly between superior and average performers, or between effective and ineffective 
performers. Meanwhile, competency can be described as a set of behavior patterns that an incumbent needs to 
bring to a position in order to perform its tasks and functions in the delivery of desired results or outcomes 
(Bartram, et. al, 2002; Woodruffe, 1992). Spencer and Spencer (1993) viewed competency as “an underlying 
characteristic of an individual that is causally related to criterion-referenced effective and/or superior 
performance in a job or situation” (p. 9). 
They identified five types of competency characteristics consisting of motives, traits, self-concept, 
knowledge and skills. First, motives are the things that an individual consistently thinks about or wants that 
stimulate action. Motives drive, direct and select behavior toward certain actions or goals and away from others. 
Second, traits are physical characteristics and consistent responses to situations or information. Third, self-concept 
is an individual’s attitudes, values or self-image. Fourth, knowledge is the information that an individual 
has in specific content areas. Finally, skill is the ability to perform a certain physical or mental task. 
Knowledge 
Generalization includes applying knowledge that has been discovered, invented, and produced to other relevant 
situations. It includes processes for integrating and disseminating knowledge across space and time. Reflecting 
on experience can help members to integrate new learning with current knowledge (Garvin, 1993; Wildavsky, 
1972). Moreover, training and development activities can generalize knowledge across people in the 
organization. Codification, standardization, and institutionalization processes can generalize knowledge across 
people and time, through embedding it in an organization’s systems, procedures, and products (Nelson & Winter, 
1982; Walsh & Ungson, 1991).Knowledge in this research is focus on Organization knowledge which is consists 
of three elements: skills, cognitions, and systems (Snyder & Cummings, 1995). Further, Knowledge and skill
Journal of Economics and Sustainable Development www.iiste.org 
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) 
Vol.5, No.17, 2014 
competencies tend to be visible and relatively surface characteristics, whereas self-concept, traits and motive 
competencies are more hidden, deeper and central to personality. Surface knowledge and skill competencies are 
relatively easy to develop and training is the most cost-effective way to secure those employee abilities (Spencer 
& Spencer, 1993). 
Role ambiguity 
Role Ambiguity is defined as “the absence of satisfactory information which is required in order for persons to 
accomplish their role in a satisfactory manner” (Zhao & Rashid, 2010). Meanwhile, Meyerson (1991) says that 
ambiguity could exist inside the organization and also it is possible that ambiguity may exist inside the 
individuals own cultural experience. In the same way different individuals in the organization can also 
experience different ambiguity types at unusual times. The Bedeian and Armenakis (1981) identified four 
dimensions of the role ambiguity which are goal or expectation ambiguity, process ambiguity, priority and 
behavior ambiguity. 
Ahmed (1998) suggested that without the role ambiguity, innovation is very difficult for the New 
Product Development (NPD), so in this condition the organization needs to encourage the culture for innovation 
and the organization must able to operate under the situation of ambiguity and the managers must be able to 
accept and handle. Kim and Wilemon (2002) stated that it is very important to recognize the nature of 
uncertainty for the New Product Development (NPD). 
Further, Brun et al., (2009) stated that there are two types of ambiguity one is subject ambiguity and 
other is resource ambiguity. The subject ambiguity consists of product, market, process and organizational 
resources while in the resource ambiguity multiplicity, novelty, validity and reliability are included. 
Job performance 
Kenney et al. (1992) stated that employee's performance is measured against the performance standards set by 
the organization. There are a number of measures that can be taken into consideration when measuring 
performance for example using of productivity, efficiency, effectiveness, quality and profitability measures 
(Ahuja 1992) as briefly explained hereafter. Campbell‟s (1990) model makes clear distinctions among 
performance components, performance determinants, and the antecedents of performance determinants. 
Performance components refer to the performance dimensions that constitute various parts of the overall job 
performance. Campbell posited that the performance components is a function of three performance 
determinants which are the declarative knowledge, procedural and skills knowledge and motivation (Campbell, 
1990; Campbell et al., 1993: pg. 43) . These are the direct determinants of performance, which are the focus of 
this study. 
Method 
This research is using descriptive analysis which aims to test the four (4) research hypothesis that has been 
determined. Object research is the employee and the management of PPAT in Indonesia. Random sampling from 
populations in this research is the employee and the management of PPAT, which is also, participates in making 
process PPAT performance is, as well as living in Indonesia. 
For taking sampling, researcher using opinion of Hair, et al.( 2010) then the number of the sample used 
in this study was 100 sample. The sampling technique used in this study is non probability sampling. the random 
purposive sampling method.( Ferdinand, 2006, p. 195-196). Data obtained from the questionnaire were analyzed 
using tables, simple percentages, cross tabulations, charts, Pearson’s Product Moment Correlation (PPMC). Data 
which contain variables were measured using a 5-point Likert scale (Malhotra, 2010) In order to effectively 
carryout inferential analysis, the items coded for descriptive analysis were transformed into dummy variables 
Statistical computation was done with the aid of SPSS 17.0 for Windows and SEM by using Lisrel 8.0. 
113 
Results and Discussion 
Analysis of data processing is using Structural Equation Model (SEM) in Full analysis model which is 
intended to test models and the hypothesis that was developed in the study. The results of data processing for 
analysis full model SEM can be seen in Table 1. From the result of data processing, researcher summarized 
result for the SEM analysis which is have Good fit value as table 1 below.
Journal of Economics and Sustainable Development www.iiste.org 
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) 
Vol.5, No.17, 2014 
Table .1 
Result Model in Goof of Fit 
Goodness-Of-Fit Index Cut-off Value Result Exp. 
Chi-Square 105,267; df=83 99,792 Good 
Probability ³ 0,05 0,101 Good 
GFI >0,90 0,908 Good 
AGFI >0,90 0,866 Marginal 
TLI >0,95 0,968 Good 
CFI >0,95 0,975 Good 
RMSEA £ 0,08 0,040 Good 
Based on the calculation results through the structural equation model by Lisrel of the hypothesis in this 
study can be accepted (as seen in the picture. 1), the results in compliance criteria goodness of fit; chi square= 99, 
792 probability = 0, 101; CMIN/ DF = 1, 202; GFI =0, 908; TLI = 0, 968; CFI = 0, 975; RMSEA = 0, 040. 
The results of data processing in the overall model shows that all indicators used to form research 
model is in compliance criteria in the goodness of fit (table 1). All the goodness of fit shown in column results if 
data in compliance with most of the conditions where these values in the value range requirements shown in the 
column cut of value. 
In the test the feasibility of full model- Structural Equation Model (Table 1), there is the criteria 
goodness of fit the marginal the AGFI ie by 0, 866, and this under the requirements AGFI ≥ 0, 90, it is due to 
some other factors that can affect the study variables that have not been put into variable in this study. 
114 
Hypothesis Testing 
In this step, testing is based on result of data processing with SEM analysis to prove purposed 
hypothesis in this research. Hypothesis Testing is done by analyze result of data processing for C.R. value and P 
value as table 2. C.R. value and P value should fill condition ± 1,96 and ≤ 0,05. Based on all result of testing, all 
hypotheses are accepted. 
Table 2 
Regression Weight (Hypothesis Testing) 
Variables Est. S.E C.R P 
Job performance ← Competency 0.358 0.163 2.185 0.018 
Job performance ← Knowledge 0.322 0.160 2.243 0.031 
Job performance ← Role ambiguity 0.445 0.193 2.109 0.013 
PPAT performance ← Job performance 0.534 0.101 4.184 0.000 
Hypothesis Testing I 
Hypothesis 1 in this research is competency has a positive effect on job performance. Parameter 
estimation of the perceived quality on the product buying interest showed significant positive results with the 
value of CR = 2.185; CR ³ 2.00 with a probability of 0.018. Therefore, the probability value of <0.05, it can be 
concluded that the variables affect the competency on job performance. Thus the first hypothesis acceptable 
means to positively influence the competency of the job performance. It is means Hypothesis I is accepted 
Hypothesis Testing II 
Hypothesis II in this research is knowledge has a positive effect on job performance. Parameter 
estimation between knowledge against job performance showed significant positive results with the value of CR 
= 2.243; CR ³ 2.00 with a probability of 0.031. Therefore, the probability value of <0.05, it can be concluded that 
the variables affect the knowledge on job performance. Thus the second hypothesis acceptable means to 
positively influence the knowledge of the job performance. It is means Hypothesis II is accepted 
Hypothesis Testing III 
Hypothesis III in this research is role ambiguity has a positive effect on job performance. Parameter 
estimation between role ambiguity against job performance showed significant positive results with the value of 
CR= 2,109; CR ³ 2,00 with a probability of 0.013. Therefore, the probability value of <0.05, it can be concluded 
that the variables affect the role ambiguity on job performance. Thus the third hypothesis acceptable. It is means 
Hypothesis II is accepted 
Hypothesis Testing IV 
Hypothesis IV in this research is job performance has a positive effect on PPAT performance.
Journal of Economics and Sustainable Development www.iiste.org 
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) 
Vol.5, No.17, 2014 
Parameter estimation between job performance against PPAT performance showed significant positive results 
with the value of CR=4,184; CR ³ 2,00 with a probability of 0,000. Therefore, the probability value of <0.05, it 
can be concluded that the variables affect the job performance on PPAT performance. Thus the fourth hypothesis 
acceptable. It is means Hypothesis IV is accepted 
After testing hypotheses, some summarized can be derived from the results of this study was: 
1) Competency is one of factor in influencing job performance in this study. Effect of competency to job 
performance of PPAT employee is 0, 38. The increase competency can be done by means always develop 
Human research’s competencies. This result is also proved previous research which is stated that 
competency effect job performance positively. 
2) Knowledge is the second factor affecting the job performance in this study. Knowledge can be achieved 
through skill and training meaningful, this result is also proved previous research which is stated that 
knowledge effect job performance positively. 
3) Role ambiguity is the important factor that has a positive influence on job performance, in this study role 
ambiguity influence the high than other dependent variables. This result is also proved previous research 
which is stated that role ambiguity effect job performance positively. 
4) PPAT performance influenced by job performance. This result is also proved previous research which is 
stated that job performance effect PPAT performance positively. 
In order to improve the job performance then PPAT employee should try to improve the job 
performance in a way to do training activities and skill development to improve not only the competency but 
also another. Improve knowledge especially through the indicator skill appear and knowledge though training 
with role ambiguity. 
Conclusion 
This study carried out to answer research problems that are increasing PPAT performance can be done by 
increasing the job performance of employee. The increase in job performance, PPAT can be done by creating 
and improve the competency and knowledge of employee. The creation and increased competency and 
knowledge both in products and service are the process of the realization of an increase in job performance that 
can encourage the realization of PPAT performance. The results of this study proves that job performance which 
was built- based role ambiguity able to direct and in the end will encourage the achievement of job performance 
the appropriate target. In other words, role ambiguity is directly affecting the job performance. 
REFERENCES 
Ackerman, P.L. (1987). Individual differences in skill learning: An integration of psychometric and information 
processing perspective. Psychological Bulletin, 102, 3-27. 
Armstrong, M. (2006). A Hand Book of Human Resource Management Practices. (10th ed.). London: Kogan 
115 
Page Ltd. 
Bohlander, G., Snell, S., & Sherman, A. (2001). Managing human resources. Australia: South-Western College 
Publishing. 
Borman, W. C., Hanson, M. A., & Hedge, J. W. (1997). Personnel selection. Annual Review of Psychology, 48, 
299-337. 
Boyatzis, R.E. (1982). The competent manager. New York: John Wiley & Sons. 
Campbell, J. P. (1990). Modeling the performance prediction problem in industrial and organizational 
psychology. In M. D. Dunnette & L. M. Hough (Eds.), Handbook of industrial and organizational 
psychology (Vol.1, pp. 687-732). Palo Alto: Consulting Psychologists Press. 
Campbell, J. P., McCloy, R. A., Oppler, S. H., & Sager, C. E. (1993). A theory of performance. In E. Schmitt, W. 
C. Borman, & Associates (Eds.), Personnel selection in organizations (pp. 35–70). San Francisco: Jossey- 
Bass. 
Dhanakumars, V.G. (2001). Performance Appraisal in Rubber Board Extension Delivery Systems (RBEDS). 
Manage Extension Research Review, 2 (2), 174-190 
Eysenck, M. (1998). Psychology: an integrated approach. New York: Addison-Wesley Longman Ltd. 
Grubb, A. D. (1999). The effect of tenure and job complexity on the contributions of task and contextual 
performance to overall performance. (Doctoral dissertation). Retrieved from ProQuest Dissertations and 
Theses database. (AAT 9945766). 
Hoffman T. (1999). The meaning of competency, Journal of European Industrial Training, 24 (6) 275-85. 
Heffernan, M. M., & Flood, P. C. (2000). An exploration of the relationships between the adoption of managerial 
competencies, organizational characteristics, human resource sophistication and performance in Irish 
organizations. Journal of European Industrial Training, 24 (2), 128-136. 
Linders, J.R., (2001). Competency Assessment and Human Resource Management Performance of County 
Extension Chairs in Ohio. Journal of Agriculture Education, 24 (4): 21-31.
Journal of Economics and Sustainable Development www.iiste.org 
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Maathis, R.L., & Jackson, J.H. (2000). Human resource management. Australia: South-Western: College 
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Publishing. 
McClelland, D.C. (1973). Testing for Competence Rather Than for Intelligence. American Psychologist, 28, 1- 
14. 
Motowidlo, S. J., Borman, W. C., & Schmit, M. J. (1997). A theory of individual differences in task and 
contextual performance. Human Performance, 10, 71-83. 
Parry, S.B. (1998). Just what is a competency? Training, 35 (6), 58-64. 
Potluri, R. M., & Zeleke, A.A. (2009). Evaluation of customer handling competencies of Ethiopian employees. 
African Journal of Business Management, 3 (4), 131-135. 
Sarmiento, R., & Beale, J. (2007). Determinants of performance amongst shop-floor employees. Management 
Research News, 30 (12), 915-927. 
Schmitt, N., & Chan, D. (1998). Personal selection: A theoretical approach. Thousand Oaks, CA: Sage 
Publications.
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Influence of competency, knowledge and role ambiguity on job performance and implication for ppat performance

  • 1. Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.5, No.17, 2014 Influence of Competency, Knowledge and Role Ambiguity on Job Performance and Implication for PPAT Performance Yuliandi Doctoral Program of Management Science, Economics Faculty of Syiah Kuala University, Aceh, Indonesia Email: yuliandisyiah@gmail.com Abstract This research discusses about the competency, knowledge and role ambiguity on job performance and the implications for PPAT performance. The method of research is used the descriptive analysis with using purposive sampling. Analysis tool used is SEM run with Lisrel software. This research found that influence of competency 0.38 knowledge 0.32, the influence of role ambiguity 0.45 against job performance. Influence of job performance on PPAT performance is 0,53. The analysis showed that the positive effect of role ambiguity on job performance greater than influence on the attractiveness of competency and knowledge. Keywords: Competency, knowledge, role ambiguity, job performance 111 Introduction Competencies are useful in order to enhance human performance at work (Hoffman 1999). One of the most well-known definition of competency and used by many scholars would probably be on the work by Boyatzis (1982) where competency was described as underlying characteristics of an individual, which are causally (change in one variable cause change in another) related to effective job performance. Therefore a job competency may be a motive, trait, skill, aspect of one‟s self-image or social role, or a body of knowledge that an individual uses, and the existence and possession of these characteristics may or may not be known to the individual (Boyatzis,1982). McClelland (1973) claimed competencies and individual characteristics predicted successful job performance. Parry (1998) confirmed that competency correlates with job performance, which can be measured and enhanced through training. Similarly, job performance and competency have found to have positive relationship by Dhanakumars (2001) and Linders (2001). Similarly study by Heffernan and Flood (2000) found there is a positive relationship between competency and job performance while Armstrong (2006) suggested that competency could contribute to the high levels of performance between individuals as well as organization. Potluri and Zeleke (2009) had conducted a study among the fontliners revealed that most employees working at the front desk areas did not demonstrate most of the basic marketing competency indicators. Further, job performance has always been regarded as important factor in employee management. Job performance has been associated with the ability of the individual employees realizing their respective work goals, fulfilling expectations as well as attaining job targets and/or accomplishing a standard that are set by their organizations (Eysenck, 1998; Maathis & Jackson, 2000; Bohlander et al., 2001). Most people will immediately define job performance as what a person does at work. Different stages of job as well the complexity of a job can affect the overall performance of the jobholder (Murphy, 1989; Ackerman, 1997). This could mean that job performance as a construct can be defined in different ways due to the different stages and complexities of the job (Grubb, 1999). Sarmiento and Beale (2007) refer job performance as the result of two elements, which consist of the abilities and skills (natural or acquired) that an employee possesses, and his/her motivation to use them in order to perform a better job. Campbell et al (1993, pg. 40) define performance…“as synonymous with behavior. It is something that people actually does and can be observed. By definition, it includes only those actions or behaviours that are relevant to the organization's goals and that can be scaled (measured) in terms of each individual's proficiency (that is, level of contribution). Performance is what the organization hires one to do, and do well” (Campbell, 1990). Even though there were many attempts to introduce various frameworks of performance, Campbell‟s definition of performance has been acceptable as the basic definition for performance (Borman et al., 1997; Motowidlo et al., 1997; Schmitt & Chan, 1998). Meanwhile, Campbell‟s (1990) model makes clear distinctions among performance components, performance determinants, and the antecedents of performance determinants. Performance components refer to the performance dimensions that constitute various parts of the overall job performance. Campbell posited that the performance components is a function of three performance determinants which are the declarative knowledge, procedural and skills knowledge and motivation (Campbell, 1990; Campbell et al., 1993: pg. 43) . These are the direct determinants of performance, which are the focus of this study. In detail, declarative knowledge includes knowledge about facts, principles, goals and self- knowledge, which represents an understanding of a given task‟s requirements. Procedural knowledge and skill includes cognitive skills, psychomotor skills, physical skills, self-management skills, and interpersonal skills. Motivation
  • 2. Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.5, No.17, 2014 is a combined effect from three choice behaviours: the choice to perform, the level of effort, and the persistence of the effort (Campbell et al., 1993). In other words, in order to perform the behaviors in one of the dimensions, a person needs to know what to do (absence of ambiguity), how to do it (having the right competency) and possess the desire (motivation) to do it. Based on the problem, it can be arranged research questions as follows: 1. What influence of competency of the job performance? 2. What influence of knowledge to job performance? 3. What influence of role ambiguity to job performance? 4. What influence of job performance to the PPAT performance? Based on the basis theoretical concepts and the results of previous studies prepared framework Job performance 112 empirical in this research as in Figure 1. Figure 1. Research Model Competency knowledge Role ambiguity H1 H2 H3 The formulations of the hypothesis in this research are as follows: H1: competency effect job performance positively H2: knowledge effect job performance positively H3: role ambiguity effect job performance positively H4: job performance effect PPAT performance positively H4 PPAT performance Literature Review Competency A competency is an individual characteristic that can be measured or counted reliably and that can be shown to differentiate significantly between superior and average performers, or between effective and ineffective performers. Meanwhile, competency can be described as a set of behavior patterns that an incumbent needs to bring to a position in order to perform its tasks and functions in the delivery of desired results or outcomes (Bartram, et. al, 2002; Woodruffe, 1992). Spencer and Spencer (1993) viewed competency as “an underlying characteristic of an individual that is causally related to criterion-referenced effective and/or superior performance in a job or situation” (p. 9). They identified five types of competency characteristics consisting of motives, traits, self-concept, knowledge and skills. First, motives are the things that an individual consistently thinks about or wants that stimulate action. Motives drive, direct and select behavior toward certain actions or goals and away from others. Second, traits are physical characteristics and consistent responses to situations or information. Third, self-concept is an individual’s attitudes, values or self-image. Fourth, knowledge is the information that an individual has in specific content areas. Finally, skill is the ability to perform a certain physical or mental task. Knowledge Generalization includes applying knowledge that has been discovered, invented, and produced to other relevant situations. It includes processes for integrating and disseminating knowledge across space and time. Reflecting on experience can help members to integrate new learning with current knowledge (Garvin, 1993; Wildavsky, 1972). Moreover, training and development activities can generalize knowledge across people in the organization. Codification, standardization, and institutionalization processes can generalize knowledge across people and time, through embedding it in an organization’s systems, procedures, and products (Nelson & Winter, 1982; Walsh & Ungson, 1991).Knowledge in this research is focus on Organization knowledge which is consists of three elements: skills, cognitions, and systems (Snyder & Cummings, 1995). Further, Knowledge and skill
  • 3. Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.5, No.17, 2014 competencies tend to be visible and relatively surface characteristics, whereas self-concept, traits and motive competencies are more hidden, deeper and central to personality. Surface knowledge and skill competencies are relatively easy to develop and training is the most cost-effective way to secure those employee abilities (Spencer & Spencer, 1993). Role ambiguity Role Ambiguity is defined as “the absence of satisfactory information which is required in order for persons to accomplish their role in a satisfactory manner” (Zhao & Rashid, 2010). Meanwhile, Meyerson (1991) says that ambiguity could exist inside the organization and also it is possible that ambiguity may exist inside the individuals own cultural experience. In the same way different individuals in the organization can also experience different ambiguity types at unusual times. The Bedeian and Armenakis (1981) identified four dimensions of the role ambiguity which are goal or expectation ambiguity, process ambiguity, priority and behavior ambiguity. Ahmed (1998) suggested that without the role ambiguity, innovation is very difficult for the New Product Development (NPD), so in this condition the organization needs to encourage the culture for innovation and the organization must able to operate under the situation of ambiguity and the managers must be able to accept and handle. Kim and Wilemon (2002) stated that it is very important to recognize the nature of uncertainty for the New Product Development (NPD). Further, Brun et al., (2009) stated that there are two types of ambiguity one is subject ambiguity and other is resource ambiguity. The subject ambiguity consists of product, market, process and organizational resources while in the resource ambiguity multiplicity, novelty, validity and reliability are included. Job performance Kenney et al. (1992) stated that employee's performance is measured against the performance standards set by the organization. There are a number of measures that can be taken into consideration when measuring performance for example using of productivity, efficiency, effectiveness, quality and profitability measures (Ahuja 1992) as briefly explained hereafter. Campbell‟s (1990) model makes clear distinctions among performance components, performance determinants, and the antecedents of performance determinants. Performance components refer to the performance dimensions that constitute various parts of the overall job performance. Campbell posited that the performance components is a function of three performance determinants which are the declarative knowledge, procedural and skills knowledge and motivation (Campbell, 1990; Campbell et al., 1993: pg. 43) . These are the direct determinants of performance, which are the focus of this study. Method This research is using descriptive analysis which aims to test the four (4) research hypothesis that has been determined. Object research is the employee and the management of PPAT in Indonesia. Random sampling from populations in this research is the employee and the management of PPAT, which is also, participates in making process PPAT performance is, as well as living in Indonesia. For taking sampling, researcher using opinion of Hair, et al.( 2010) then the number of the sample used in this study was 100 sample. The sampling technique used in this study is non probability sampling. the random purposive sampling method.( Ferdinand, 2006, p. 195-196). Data obtained from the questionnaire were analyzed using tables, simple percentages, cross tabulations, charts, Pearson’s Product Moment Correlation (PPMC). Data which contain variables were measured using a 5-point Likert scale (Malhotra, 2010) In order to effectively carryout inferential analysis, the items coded for descriptive analysis were transformed into dummy variables Statistical computation was done with the aid of SPSS 17.0 for Windows and SEM by using Lisrel 8.0. 113 Results and Discussion Analysis of data processing is using Structural Equation Model (SEM) in Full analysis model which is intended to test models and the hypothesis that was developed in the study. The results of data processing for analysis full model SEM can be seen in Table 1. From the result of data processing, researcher summarized result for the SEM analysis which is have Good fit value as table 1 below.
  • 4. Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.5, No.17, 2014 Table .1 Result Model in Goof of Fit Goodness-Of-Fit Index Cut-off Value Result Exp. Chi-Square 105,267; df=83 99,792 Good Probability ³ 0,05 0,101 Good GFI >0,90 0,908 Good AGFI >0,90 0,866 Marginal TLI >0,95 0,968 Good CFI >0,95 0,975 Good RMSEA £ 0,08 0,040 Good Based on the calculation results through the structural equation model by Lisrel of the hypothesis in this study can be accepted (as seen in the picture. 1), the results in compliance criteria goodness of fit; chi square= 99, 792 probability = 0, 101; CMIN/ DF = 1, 202; GFI =0, 908; TLI = 0, 968; CFI = 0, 975; RMSEA = 0, 040. The results of data processing in the overall model shows that all indicators used to form research model is in compliance criteria in the goodness of fit (table 1). All the goodness of fit shown in column results if data in compliance with most of the conditions where these values in the value range requirements shown in the column cut of value. In the test the feasibility of full model- Structural Equation Model (Table 1), there is the criteria goodness of fit the marginal the AGFI ie by 0, 866, and this under the requirements AGFI ≥ 0, 90, it is due to some other factors that can affect the study variables that have not been put into variable in this study. 114 Hypothesis Testing In this step, testing is based on result of data processing with SEM analysis to prove purposed hypothesis in this research. Hypothesis Testing is done by analyze result of data processing for C.R. value and P value as table 2. C.R. value and P value should fill condition ± 1,96 and ≤ 0,05. Based on all result of testing, all hypotheses are accepted. Table 2 Regression Weight (Hypothesis Testing) Variables Est. S.E C.R P Job performance ← Competency 0.358 0.163 2.185 0.018 Job performance ← Knowledge 0.322 0.160 2.243 0.031 Job performance ← Role ambiguity 0.445 0.193 2.109 0.013 PPAT performance ← Job performance 0.534 0.101 4.184 0.000 Hypothesis Testing I Hypothesis 1 in this research is competency has a positive effect on job performance. Parameter estimation of the perceived quality on the product buying interest showed significant positive results with the value of CR = 2.185; CR ³ 2.00 with a probability of 0.018. Therefore, the probability value of <0.05, it can be concluded that the variables affect the competency on job performance. Thus the first hypothesis acceptable means to positively influence the competency of the job performance. It is means Hypothesis I is accepted Hypothesis Testing II Hypothesis II in this research is knowledge has a positive effect on job performance. Parameter estimation between knowledge against job performance showed significant positive results with the value of CR = 2.243; CR ³ 2.00 with a probability of 0.031. Therefore, the probability value of <0.05, it can be concluded that the variables affect the knowledge on job performance. Thus the second hypothesis acceptable means to positively influence the knowledge of the job performance. It is means Hypothesis II is accepted Hypothesis Testing III Hypothesis III in this research is role ambiguity has a positive effect on job performance. Parameter estimation between role ambiguity against job performance showed significant positive results with the value of CR= 2,109; CR ³ 2,00 with a probability of 0.013. Therefore, the probability value of <0.05, it can be concluded that the variables affect the role ambiguity on job performance. Thus the third hypothesis acceptable. It is means Hypothesis II is accepted Hypothesis Testing IV Hypothesis IV in this research is job performance has a positive effect on PPAT performance.
  • 5. Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.5, No.17, 2014 Parameter estimation between job performance against PPAT performance showed significant positive results with the value of CR=4,184; CR ³ 2,00 with a probability of 0,000. Therefore, the probability value of <0.05, it can be concluded that the variables affect the job performance on PPAT performance. Thus the fourth hypothesis acceptable. It is means Hypothesis IV is accepted After testing hypotheses, some summarized can be derived from the results of this study was: 1) Competency is one of factor in influencing job performance in this study. Effect of competency to job performance of PPAT employee is 0, 38. The increase competency can be done by means always develop Human research’s competencies. This result is also proved previous research which is stated that competency effect job performance positively. 2) Knowledge is the second factor affecting the job performance in this study. Knowledge can be achieved through skill and training meaningful, this result is also proved previous research which is stated that knowledge effect job performance positively. 3) Role ambiguity is the important factor that has a positive influence on job performance, in this study role ambiguity influence the high than other dependent variables. This result is also proved previous research which is stated that role ambiguity effect job performance positively. 4) PPAT performance influenced by job performance. This result is also proved previous research which is stated that job performance effect PPAT performance positively. In order to improve the job performance then PPAT employee should try to improve the job performance in a way to do training activities and skill development to improve not only the competency but also another. Improve knowledge especially through the indicator skill appear and knowledge though training with role ambiguity. Conclusion This study carried out to answer research problems that are increasing PPAT performance can be done by increasing the job performance of employee. The increase in job performance, PPAT can be done by creating and improve the competency and knowledge of employee. The creation and increased competency and knowledge both in products and service are the process of the realization of an increase in job performance that can encourage the realization of PPAT performance. The results of this study proves that job performance which was built- based role ambiguity able to direct and in the end will encourage the achievement of job performance the appropriate target. In other words, role ambiguity is directly affecting the job performance. REFERENCES Ackerman, P.L. (1987). Individual differences in skill learning: An integration of psychometric and information processing perspective. Psychological Bulletin, 102, 3-27. Armstrong, M. (2006). A Hand Book of Human Resource Management Practices. (10th ed.). London: Kogan 115 Page Ltd. Bohlander, G., Snell, S., & Sherman, A. (2001). Managing human resources. Australia: South-Western College Publishing. Borman, W. C., Hanson, M. A., & Hedge, J. W. (1997). Personnel selection. Annual Review of Psychology, 48, 299-337. Boyatzis, R.E. (1982). The competent manager. New York: John Wiley & Sons. Campbell, J. P. (1990). Modeling the performance prediction problem in industrial and organizational psychology. In M. D. Dunnette & L. M. Hough (Eds.), Handbook of industrial and organizational psychology (Vol.1, pp. 687-732). Palo Alto: Consulting Psychologists Press. Campbell, J. P., McCloy, R. A., Oppler, S. H., & Sager, C. E. (1993). A theory of performance. In E. Schmitt, W. C. Borman, & Associates (Eds.), Personnel selection in organizations (pp. 35–70). San Francisco: Jossey- Bass. Dhanakumars, V.G. (2001). Performance Appraisal in Rubber Board Extension Delivery Systems (RBEDS). Manage Extension Research Review, 2 (2), 174-190 Eysenck, M. (1998). Psychology: an integrated approach. New York: Addison-Wesley Longman Ltd. Grubb, A. D. (1999). The effect of tenure and job complexity on the contributions of task and contextual performance to overall performance. (Doctoral dissertation). Retrieved from ProQuest Dissertations and Theses database. (AAT 9945766). Hoffman T. (1999). The meaning of competency, Journal of European Industrial Training, 24 (6) 275-85. Heffernan, M. M., & Flood, P. C. (2000). An exploration of the relationships between the adoption of managerial competencies, organizational characteristics, human resource sophistication and performance in Irish organizations. Journal of European Industrial Training, 24 (2), 128-136. Linders, J.R., (2001). Competency Assessment and Human Resource Management Performance of County Extension Chairs in Ohio. Journal of Agriculture Education, 24 (4): 21-31.
  • 6. Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.5, No.17, 2014 Maathis, R.L., & Jackson, J.H. (2000). Human resource management. Australia: South-Western: College 116 Publishing. McClelland, D.C. (1973). Testing for Competence Rather Than for Intelligence. American Psychologist, 28, 1- 14. Motowidlo, S. J., Borman, W. C., & Schmit, M. J. (1997). A theory of individual differences in task and contextual performance. Human Performance, 10, 71-83. Parry, S.B. (1998). Just what is a competency? Training, 35 (6), 58-64. Potluri, R. M., & Zeleke, A.A. (2009). Evaluation of customer handling competencies of Ethiopian employees. African Journal of Business Management, 3 (4), 131-135. Sarmiento, R., & Beale, J. (2007). Determinants of performance amongst shop-floor employees. Management Research News, 30 (12), 915-927. Schmitt, N., & Chan, D. (1998). Personal selection: A theoretical approach. Thousand Oaks, CA: Sage Publications.
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