COMPANY VISIT REPORT

FACTORS INFLUENCING EMPLOYEE PERFORMANCE AT

PT. SRITEX

ANGGITA AULIA MUFIDAWATI

(20160410046)

FAKULTAS EKONOMI DAN BISNIS

UNIVERSITAS MUHAMMADIYAH YOGYAKARTA

YOGYAKARTA

2018/2019
 VALIDITY SHEET

COMPANY VISIT REPORT

FACTORS INFLUENCING EMPLOYEE PERFORMANCE AT

PT. SRITEX

Arranged by:

Anggita Aulia Mufidawati

20160410046

It has been approved by the Field Supervisor

Lecturer

Punang Amaripuja, S.E., S.T., M. IT Yogyakarta, 11th March 2019

NIP: 19701012 200501 1 013
 PREFACE

All thanks to Allah SWT for giving His mercy in writing Company Visit

Report with title “Factors Influencing Employee Performance at PT. Sritex”.

This Visit Company Report prepared to fulfill the requirements in

Visit Company Course. The author takes this topic as a means of information to

the community and a as a form of learning outcomes obtained during the

company visits that have been carried out.

Writing this report is inseparable from the guidance and support of

various parties. In this occasion, the author would like to thank as much as

possible to:

1. Allah SWT, who has given convenience in preparing this report

2. Dean of Faculty of Economic and Business Universitas Muhammadiyah

Yogyakarta that support to do this report.

3. Head of Management Department Faculty of Economic and Business

Universitas Muhammadiyah Yogyakarta that give guidance to do this report.

4. Mr. Punang Amaripuja, S.E., S.T., M.IT with patiently give suggestion and

guidance during do this Visit Company Report.

5. My Father and My Mother (Almh) and my family that always give me

support and attention to the author, to do this Visit Company Report.

6. All of my friends and bestfriends that give the author support, motivation,

and attention to the author, to do this Visit Company Report.

7. All parties who give the author support in process to do this Visit Company

Report.

As a closing sentence, the author realizes that no human is perfect, so

the author apologizes for the lack of this Visit Company Report, all crticisms

and suggestions will help the author to develop this Visit Company Report.

Yogyakarta, 11th March 2019

Anggita Aulia Mufidawati

Table of Content
VALIDITY SHEET.................................................................................................................ii
PREFACE...............................................................................................................................iii
Table of Content.......................................................................................................................v
CHAPTER I.............................................................................................................................1
INTRODUCTION...................................................................................................................1
1.1 Research Background.........................................................................................................1
1.2 Problem Statement............................................................................................................4
1.3 Research Objectives...........................................................................................................4
CHAPTER II............................................................................................................................5
LITERATURE REVIEW.........................................................................................................5
2.1.Literature Review...............................................................................................................5
CHAPTER III..........................................................................................................................7
DISCUSSION..........................................................................................................................7
3.1.General Description of The Object of Observation............................................................7
3.2.Factors Influencing Employee Performance in the Textile Industry.................................10
3.3.Factors Influencing Employee Performance in PT. Sritex................................................10
3.4.Interpretation....................................................................................................................11
CHAPTER IV........................................................................................................................13
CONCLUSION......................................................................................................................13
4.1.Conclusion.......................................................................................................................13
4.2 Suggestion.......................................................................................................................14
 CHAPTER I

INTRODUCTION

1.1 Research Background

Human resource management is important to manage people and to obtain better

profits. Human resource management is defined as productive use of people in

achieving the organization’s strategic business objectives and the satisfaction of

individual employee needs. Employee of an agency basically the only major source of

an organization that can not be replaced by other resources, because no matter how

good an organization, complete amenities, and facilities will not be helpful in the

absence of an employee who set up, use and maintains.

Employees are required to always work with high performance. Performance is

critical factor in organzational success. Employee performance is defined as whether

a person executes their job duties and responsibilities as well(James, 2018). It is

important to identify the variables associated with the employee performance.

Performance is a critical factor in organizational success. Employees expect that it is

the responsibility of organizations to enhance their performance.The outputs are

effective HR outcomes, quality of goods and services, productivity and financial

performance.
 The increasing of the competition, making each individual trying to learn and

observe the economic condition, with the aim of finding opportunities, so their

production activities can increase also. They want to get better profits and reduce

their competitor’s profit.

According to Gibson (2002: 122) organization culture is something that can be

believed by the employees and this trust can make a role model, value, and

expectation. Organization culture that is implemented in a company will provide

guidance to the company to influence the employee behavior that is suitable with the

company’s objectives. The stronger organization culture it will increase the employee

performance. According to Sasongko (2002: 97), organization culture will give

impact to employee performance.

Employee performance also influenced by competency that employee have.

According to Robbins (2001: 77), competency will directly influence employee

performance. If the employee competency fullfil the requirements of the standard of

the employee, it can increase the employee performance also. What the employee can

do its really influence their performance. For example, if we recruit employee that

graduated from senior high school and from undergraduate program, the result of th

work will different.

Employees must be motivated, so as to provide services to customers not

impressed low, lazy and reluctantly(Hidayat, 2015). The motivation for employees

required to improve service to its customers. Employee in addition to having a high

work motivation demanded to always improve the quality of service because it is very

necessary training. The training was conducted by company, in order to balance the

demands and technological advances. Job training is one variable that is important in

the implementation of tasks. So employees can provide good services, the employee

must have a high motivation.

The motivation and morale and job training are indispensable employees in

performing tasks, thus if an employee is able to provide high service, the customer

will be satisfied, otherwise if given the motivation is low, then the customers who

need the service will be dissatisfied. Under these conditions, it is understood that the

service can be affected by a given level of motivation, while the training of

employees can affect the performance of the employee itself.

The other factor is leadership style. Employee performance can higher than

before if the leadership style of the manager its good. The leader can provide support,

good suggestion to the employee (Hidayat, 2015). Leader have many responsibilites

in order to increase the employee performance, like plan something in long term

period. A good leadership is when the leader can involve in every employee’s

activity.

Salary is something that employee get after they have done something. They can

use salary to make their life still continue.

 Based on this research background, the author attractive to do this research to

know what is the factors that influencing employee performance, with title “Factors

Influencing Employee Performance in PT. Sritex”.

1.2 Problem Statement

From the research background that has been taken, the problem statements are:

1. What are the factors influencing employee performance in PT. Sritex?

2. What are the difficulties to improving the employee performance in PT.

Sritex?

1.3 Research Objectives

1. Objectives

Based on the problem statement, the research objectives are:

1. To identify the factors that influencing the employee performance in

PT. Sritex.

2. To understand the problems that faced by the manager in order to

improve the employee performance.

2. Research Contribution

1) For Company

a. Asinformations to the company leader to consider what the factors

that influencing employee performance at PT. Sritex.

2) For Author
 a. To develop the knowledge about human resource management.

3) For University

a. As reference for other authors to get informations and resources.

CHAPTER II

LITERATURE REVIEW

2.1.Literature Review

A. Employee Performance

The internal environmental factors like human resource, technical,

financial, production and marketing aspects were influencing the organization

performance. The external environmental factor such as cultural, social and

political aspects, policies of government and government support were also

influencing the organization performance (Mittar, 2014).

The employee performance is closely associated with people cognition,

feelings and their perception about their jobs. Employee performance of the

employees influences their work efforts and output. Employees are the life blood

of the organization and the most significant resource, their behavior and attitude

in the subject of HRM recognize in an important position (Nyaanga, 2013).

 Performance according Mangkunegara (200:67) is a work results in

quality and quantity that have achieved by the employees in carrying out their

tasks. Many factors that influence employee performance, one of them is

organization culture. Organization culture is involve the habit of the employee in

work environment that has been ruled in the organization. According to

Mangkunegara (2010: 198) leadership is an ability to make someone trust us and

make them work under our leadership to reach some goals (Hidayat, 2015).

Employee performance can be defined as the evaluation of work that

generate exciting and happy situation for employees. In organizational research,

employee performance is investigated as feelings and characteristics concerned

with their work. Spector defined employee performance is liking and disliking of

people about their job. Budhar and Khatri established employee performance as

something that an important feature for employee maintenance while being on

the job (Nyaanga, 2013).

B. Observation Method

a. Object

The research object of this study is garment industry that located in

Sukoharjo, Central Java namely PT.Sritex. The research object of this

study is employee of PT. Sritex.

b. Kind of Data

Kind of data that used by the author to complete this visit company

report is secondary data.

 c. Data Collection Procedures

Data collection method of this research is observation. Observation is

a data collecting, method that is performed by directly examining the

research objects. It means that an observer or an examiner is on the

spot where the observation takes place.

d. Operational Definition of Variable

Employee performance is a result of employee within a certain period

of time that measure by output of quality and quantity (Nyaanga,

2013).

We can measure the employee performance from employee

productivity, quality, leadership, communication competence,

administrative competence, effort, interpersonal competence, and job

knowledge.

CHAPTER III

DISCUSSION

3.1. General Description of The Object of Observation

PT. Sritex established in 1966 by Haji Muhammad Lukminto (Alm) at Pasar

Klewer, Solo. The first name of PT Sritex is not PT. Sritex, but UD. Sri Rejeki. In

1968, Sritex established its first printing factory that produced bleached and dyed
fabrics in Solo. In 1982, Sritex established its first weaving factory. In 1992, Sritex

expanded the factories of its four product lines and achieved one-roof integration. In

1994, Sritex became the designated military uniform poduced for NATO and the

German army. In 1997, Iwan Setiawan succeded the business. In 2001, Sritex

survived from the 1998 Asian financial crisis and multiplied its growth eight times its

size in 1992. In 2010, Sritex despite the challenging world economic conditions, and

Sritex suceeded to overcome the crisis. In 2012, Sritex managed to double its growth

and performance compared to 2001. In 2013, Sritex succesfully carry out an Initial

Public Offering and become Public Listed Company in the textile and garment

industry. During this year, Sritex also underwent significant expansion by acquiring

PT. Sinar Pantja Djaja in Semarang. In 2014, Sritex successfully issued bond worth

US$ 200 Million.

Sritex has a long-running history of delivering high standard and quality

products in the textile industry. This effort of bringing together an excellence in

human resources, machine, material and management that lets Sritex retain and attract

its customers. Sritex believes that quality people will bring about a quality process

which results in good products.

Sritex’s vertical integration to its upstream and downstream processes enables it

to achieve an economies of scale as well as a one-stop shopping textile and garment

supermall concept that provides a variety of products catering to each of the

customers’ range of demands.

 Sritex is dedicated in putting forward up-to-date design and collection by

closely working together with customers employing its state-of-the-art technology as

well as research and development efforts to create cutting edge products and

materials. Sritex’s efficient cost structure is supported by its vertical integration.

Inhouse production of yarn, fabric & garment in one value chain allows for optimal

coordination & swift production. Sritex also incurs no transportation cost, as the

production is done under one roof, hence a short lead time and speed of delivery.

Sritex’s outstanding integrated planning and time management gives it the ability to

execute on-time delivery, which is crucial to both Sritex and its customers’

procurement and warehousing strategy.

Sritex has achieved a global recognition & serves many countries worldwide.

Sritex’s versatility has enabled it to penetrate the international fashion market with its

top-notch international high-fashion clientele of more than 100 household name

brands. Sritex’s client list include prominent players in the fashion scene all across

the globe, from children’s lines, retailers such as Walmart and Sears, to big fashion

lines such as Guess, H&M and many more. High quality translates to high customer

retention, a lot of Sritex’s customer returns to Sritex and becomes partners to develop

their products and design.

Ecological protection is the key driver behind Sritex’s innovation on waste

water treatment.Sritex continuously improves its technologies of waste water

treatment in aiding the process of residual waste and to ensure its accordance to the

international environmental regulations.

3.2. Factors Influencing Employee Performance in the Textile Industry

Human resource development department take an important thing to develop

the employee. Human resource development department should make some programs

like training, coaching, and development program. In textile indusrty, employee need

to know about spinning, weaving, and designing before they start to work (Mehmood,

2017).

Extrinsic motivation also influence employee performance in textile industry.

Employee motivation is a key to increase the employee peformance. Some employee

have high motivation and they showed that they have high performance. But some

employee that they have low motivation, they usually have a little bit gap with

employee that have high motivation. We can help them by motivate them every we

meet them (Shaikh, 2018).

Workforce diversity also influence employee performance. Workforce

diversity can be from age, gender, ethnicity,and education background. When old

employee meet the young employee, they will feel like they are more senior than the

young employee. Similar when women employee meet men employee, they will feel

they have distance to make a conversation.

3.3.Factors Influencing Employee Performance in PT. Sritex

Factors influencing employee performance in PT. Sritex are employee

motivation, leadership style, and salary (Hidayat, 2015). Employee motivation is a

key to increase the employee peformance. Some employee have high motivation and
they showed that they have high performance. But some employee that they have low

motivation, they usually have a little bit gap with employee that have high

motivation. Some leader can provide good suggestion for their employee to increase

their performance, but some leader they do not have that ability. A good leader will

influence or will give their employee a good facilitation to increase their performance

such as training and development program. When the employee get a high salary or

they get a suitable salary from something that they have done in their company, they

will feel satisfiy. They want to fullfil their need and from their salary. Like Maslow

theory said, the first need of the human is physiological need. If they do not have

money, how they can fullfil their need. If they get low salary but their work is so

hard, it is not fair for them, and it can reduce their performance.

3.4.Interpretation
Factors influencing employee performance in PT. Sritex are organization

culture, employee competency, employee motivation, leadership style, and salary. If

the organization culture is support the employee, and the employee can adapt with the

organization culture, so the employee performance will increase. If the employee

competency fullfil the requirements of the standard of the employee, it can increase

the employee performance also. What the employee can do its really influence their

performance. Employee motivation is a key to increase the employee peformance.

Some employee have high motivation and they showed that they have high

performance. But some employee that they have low motivation, they usually have a

little bit gap with employee that have high motivation. Some leader can provide good
suggestion for their employee to increase their performance, but some leader they do

not have that ability. A good leader will influence or will give their employee a good

facilitation to increase their performance such as training and development program.

When the employee get a high salary or they get a suitable salary from something that

they have done in their company, they will feel satisfiy. They want to fullfil their

need and from their salary. Like Maslow theory said, the first need of the human is

physiological need. If they do not have money, how they can fullfil their need. If they

get low salary but their work is so hard, it is not fair for them, and it can reduce their

performance.

The difficulties in order to improve the employee performance is when they

have low motivation and the leader do not have a good leadership style. If the

employee have low motivation, the leader can not help them to improve their

performance. They will think that what they will do is just like rubbish or they

already thought that they can not do that. When we have leader that have not a good

leadership style, the leader will difficult to give his employee suggestion, because the

leader do not involve in every employee activities. Leader can not feel unity with the

employee and he will feel that he separated from them.

 CHAPTER IV

CONCLUSION

4.1.Conclusion

Employee
Motivation
(Hidayat,
2015)
P1

Leadership
Leadership
P2
Style (Hidayat,
2015)

Salary
P3
(Hidayat,
2015)
Employee
Performance

P4
Employee
Competency
(Khan, 2014)

P5

Organization
Culture
(Khan,
2014)
 Conclusion from this visit company report are employee motivation, salary,

employee competency, organization culture, and leadership style influence employee

performance in PT. Sritex. The difficulties that the manager faced when they want to

improve the employee performance when the employee have low level motivation

and the leadership style can not make the leader fully involve in every employee

activity.

4.2 Suggestion
Suggestion that author give to the company is manager should pay attention to

the factors influencing employee performance. Factors influencing employee

performance are employee motivation, salary, employee competency, organization

culture, and leadership style. How to increase the employee performance, and how to

help them to be motivated employee. For manager that not too close with their

employee, try to closer with them Try to involve with them in every work activities.
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Karyawan di PT. Sri Rejeki Isman (SRITEX) Unit Spinning III Sukoharjo.

James, K. (2018). Work Safety Compliance and Employee Performance in Textile

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Brahmasari, I. (2008). Pengaruh Motivasi Kerja, Kepemimpinan dan Budaya

Organisasi Terhadap Kepuasan Kerja Karyawan serta Dampaknya pada

Kinerja Perusahaan.

Mehmood, M. (2017). Impact of Human Resource Development. 2017, 6(2), 970-

973.

Mittar, S. (2014). Human Resource Factors Influencing Employee Performance in

Garment Manufacturing Firms (GMF) in Delhi. 2014, 5 (7), 990-1002.

Nyaanga, S. (2013). Virtual Organization: A Strategic Management Option For

Business In Developing Countries.

Khan. I. (2014). Impact of Attitude on Employee Performance: A Study of Textile

Industry in Punjab, Pakistan. 2014.

Shaikh, S. (2018). The Impact of Extrinsic Motivation on Employee's Performance: A

Comparative Analysis of Food and Textile Industries in Sindh, Pakistan.

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