Determinant of Loyalty and Its Impact on Employee Performance of Aceh Financial Management Agency (BPKA)

Author: Nurlaila, Faisal and Ridwan Nurdin, Indonesia

Abstract: This research was made to examine the effect of quality of work life and job satisfaction on loyalty and its impact on employee performance at the Aceh Financial Management Agency. The research sample was 130 people. Data collection is done by questionnaire and analyzed by Structural Equation Model (SEM). The result shows quality of work life affects employee performance, job satisfaction affects employee performance, the quality of work life affects the loyalty, job satisfaction affects loyalty, loyalty affects employee performance, there is an indirect effect of the quality of work life on employee performance through the loyalty, there is an indirect effect of job satisfaction on employee performance through the loyalty. These all causality results strengthen the previous theories and can be a reference for the further scientific research. The novelty resides in the unification of previous models and become a developed model, and uses SEM as a statistics analysis tool, and also with the new object. The limitation lies in the number of variables and the object that is only one. This result also contribute to the practical managers, especially in the organization related in this research, the Aceh Financial Management Agency.

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