Hasanuddin Economics and Business Review 04:2 (2020) 58–64

How does Happiness at Work Affect

Employee Performance in the Head Office of BKKBN?

Endah Agustiena,∗, Pantius Drahen Soelinga

a Departmentof Administrative Science and Human Resources Development
Faculty of Administrative Science Universitas Indonesia

Abstract
This study aims to determine the extent of the role of happiness at work in improving employee performance in the head office
of BKKBN, both directly and indirectly. The approach of research uses quantitative methods. Primary data were collected by
distributing questionnaires. Analysis of data processed by descriptive analysis and inferential analysis using the structural equation
model to 200 respondents data. The results showed that happiness at work had not directly affect employee performance, but when
the relationship was mediated by work motivation there was a positive effect between happiness at work on employee performance.
Keywords: happiness at work, work motivation, employee performance

1. INTRODUCTION the productivity of an organization (Spector, 1997); Lee et al.

(2000). So that when employees in an organization are happy
We generally think that we have to work hard to achieve at work, the productivity of the organization will also increase.
success, and then we can achieve happiness after being success- Besides being able to improve employee performance, hap-
ful. But if the concept is reversed, happiness can drive success piness at work is closely related to millennial behavior, which
is also not something wrong. Achor (2010) states that happi- is currently starting to dominate the labor market. For millen-
ness is what drives a person to achieve success. This is in line nials, it’s important for them to work where they want to be
with Carr et al. (2003) statement which states that every indi- and to do what they really love to do. If they feel trapped in a
vidual naturally feels comfortable when he/she is in a happy job that is not what they want, they will move quickly to find a
condition and has a tendency to be in a positive psychological more suitable job (Schaffer, 2015). So that it can be seen that
condition which is characterized by a high degree of life satis- millennials have a tendency to look for things that will make
faction, positive affect, and a low degree of negative affect. Em- them comfortable and happy at work.
ployees’ positive affect had a positive effect on both their sense Millennial is a generation born between 1980 and 2000.
of well-being and job performance, there was a highly signifi- Various studies state that millennials are beginning to domi-
cant positive correlation between person-job fit and well-being, nate the global labor market. In Indonesia, based on data ob-
and both well-being and person-job fit had positive effects on tained from the Central Bureau of Statistics’ Socio-Economic
job performance (Lin et al., 2014). Survey (Susenas) in 2017, it shows that the number of millenni-
Based on previous theories and studies, it can be seen that als is more dominant than other generations, which is 33.75% of
happiness at work can improve employee performance Rego the total population of Indonesia (KemenPPPA, 2018). Badan
and Cunha (2008) state that happiness is a tool that can max- Kependudukan dan Keluarga Berencana Nasional (BKKBN)/
imize the improvement of personal quality and employee per- National Family Planning Coordinating Agency as a govern-
formance. Bataineh (2019) also stated Happiness at Work has ment agency has also begun to enter this phase. This can be
an effect on employee performance. Furthermore, happiness seen in Table 1 which describes the composition of the head
at work is defined as a condition that contributes positively to office of BKKBN employees based on age levels.
Based on Table 1, the composition of employees in the head
∗ Author
office of the BKKBN environment is currently dominated by
in correspondence,
Email address: atarnaya@gmail.com (Endah Agustien) Millennials (21-30 and 31-40 age groups) with a total of 387
employees or 57.5 percent of the total number of employees.
ISSN: 2549-3221 (Print) 2549-323X (Online) Apart from happiness at work, another variable that has
DOI: 10.26487/hebr.v4i2.2442 a positive relationship with performance is work motivation.
 Agustien and Soeling / Hasanuddin Economics and Business Review 04:2 (2020) 58–64 59

Happiness at work is a positive feeling that an individual

Table 1: Number of BKKBN employees
has at any time of work because the individual knows, manages,
No Age Level Number and influences the world of work so that he/she is able to max-
of People imize performance and provide satisfaction for himself/herself
1 21-30 91 at work Pryce-Jones (2010). Bataineh (2019) also stated hap-
2 31-40 296 piness at work has an effect on employee performance. Fur-
3 41-50 143 thermore, happiness at work is defined as a condition that con-
4 51-60 136 tributes positively to the productivity of an organization (Spec-
5 >60 7 tor (1997); Lee et al. (2000)). So that when employees in an
organization are happy at work, the productivity of the orga-
Total 673
nization will also increase. Garcia (2019) explains happiness
Source: BKKBN Personnel Bureau at work in two dimensions, namely the dimension of the work
environment and the second concern to the intrinsic factors of
workers. The two dimensions are then developed into 11 reli-
Aprianto (2016) stated that work motivation has a positive and
able and valid scales to measure employee happiness at work.
significant effect on performance. Furthermore, Robbins and
Judge (2012) define motivation as a process that takes into ac-
Work motivation
count the intensity, direction, and persistence of efforts to achieve
a goal”. Intention can be defined as how often someone tries, According to Robbins and Judge (2012) motivation is de-
which is followed by a clear direction to focus on organizational fined as a process that takes into account the intensity, direction,
goals, accompanied by persistence to maintain these efforts. In and persistence of efforts to achieve a goal. Intention can be de-
this study, work motivation acts as a mediator variable that me- fined as how often someone tries. However, high intensity will
diates the relationship between happiness at work and employee not produce satisfactory performance if the effort is not focused
performance. and leads to organizational goals. And the last is persistence,
Happiness at work and work motivation are chosen in this which is a measure of a person’s ability to maintain his/her ef-
study based on efforts to strengthen employee performance in fort in order to achieve goals. Moore (2007) defines work mo-
order to improve organizational performance, which currently tivation as the enthusiasm and positive attitude that employees
still has a red record. Because as stated by Ulrich (1998) em- feel about work. Gibson (1995) argues that motivation is some-
ployee performance will affect group performance and later will thing that encourages individuals to do an action, both factors
affect overall organizational performance. that come from within and from outside the individual. Ama-
Following are the results of the BKKBN performance eval- bile et al. (1994) then explain further the orientation that exists
uation that still need to be addressed, namely: (1) the results in work motivation both from within (intrinsically) and from
of 2019 self-assessment of the implementation of bureaucratic without (extrinsic).
reform, which is an instrument to measure the progress of the Measurement of work motivation in this study was devel-
implementation of bureaucratic reform of government agencies oped from the understanding of Robbins and Judge (2012) re-
in Indonesia, are still below the target of the national bureau- garding work motivation which takes into account intensity, di-
cratic reform index. (2) The results of the evaluation of the rection, and persistence. These three things are then reduced to
implementation of the Government Agency Performance Ac- dimensions of work motivation, which are then translated into
countability System, which is a measure to realize effective and indicators that reflect work motivation.
efficient budget management, obtained a value of 66.17 from
the weighting of 100. Although in general, the level of effec- Employee Performance
tiveness and efficiency of budget used in the BKKBN has been Performance is the amount of energy and effort spent by
running well, there were still many things that need to be ad- individuals for the organization Robbins and Judge (2012). Ac-
dressed. Especially in the performance measurement compo- cording to Byars and Rue (2011) performance is a person’s will-
nent ingness to carry out his/her responsibilities in an organization in
order to achieve organizational goals.
Aguinis (2009) states that performance has two dimensions
2. LITERATURE REVIEW
of measurement, namely task performance, and contextual per-
Happiness at work formance. Task performance is the activity of changing input
into output in an organization’s activities. Task performance
Every individual naturally feels comfortable when he/she
activities are based on the skills and abilities of an individual
is in a happy condition and has a tendency to be in a positive
in the group so that the organization runs effectively and effi-
psychological condition which is characterized by a high degree
ciently. Task performance can be seen in the quantity, quality,
of life satisfaction, positive affect, and a low degree of negative
and time of work implementation. Meanwhile, contextual per-
affect Carr et al. (2003). The high level of a positive effect then
formance is a performance that is assessed based on the behav-
moves a person to be able to provide positive values for their
ior of employees in the organization. Contextual performance
performance. This concept of happiness is then applied in the
can be seen from the personality of employees in carrying out
world of work which is often called happiness at work.
 Agustien and Soeling / Hasanuddin Economics and Business Review 04:2 (2020) 58–64 60

activities, compliance with applicable regulations in the organi-

work
zation, and high integrity.
motivation
Research Hypothesis H2 H2
Based on the review and theoretical framework, the researcher
then builds a hypothesis about the relationship between hap- employee
happiness H1
piness at work, work motivation, and employee performance performance
at work
variables, both in the context of direct relationship between
variables and indirect relationship through mediating variables.
These are four hypotheses were built in this study: Figure 1: Dual Pathway Creativity Model
Every individual naturally feels comfortable when he/she
is in a happy condition and has a tendency to be in a positive
3. METHODS
psychological condition which is characterized by a high degree
of life satisfaction, positive affect, and a low degree of negative The research approach used in this research is to use quan-
affect (Carr et al., 2003). With a high level of positive affect, it titative research methods. In quantitative research, theoretical
is expected to provide positive values for performance. paradigms will be used to guide researchers to find research
Bataineh (2019) stated happiness at work has an effect on problems, hypotheses, concepts, methodologies and then find
employee performance. Based on this research, it is concluded data analysis tools (Bungin, 2005). This study intends to ex-
that happiness is a tool that can maximize the improvement of plain the position of the variables studied and the influence be-
personal quality and employee performance. tween one variable and another. So that it can be seen the effect
Based on this, the first hypothesis (H1 ) is determined, namely: of happiness at work, work motivation, and employee perfor-
H1 : There is a positive and significant influence between mance, both indirect relationship between variables and a direct
happiness at work on employee performance. relationship.
Currently, many organizations are trying to increase work Data collection is done by collecting primary and secondary
motivation in order to improve employee performance. Moti- data. Primary data is data that is directly obtained from the first
vation is often used as a mediator to explain the relationship data source at the research location or research object (Bun-
between a variable on performance. Although no previous re- gin, 2005). Researchers obtained primary data through a survey
search has found that explains the relationship between happi- method using a questionnaire consisting of 28 statement items
ness at work and performance through work motivation, there that have been compiled based on the indicators of each vari-
are several studies that link work motivation as a mediating able. Meanwhile, secondary data in this study were obtained
variable to performance. For example, in a study entitled “The from regulations related to bureaucratic reform, performance
Mediation of Work Motivation on the Effects of Work Disci- accountability, employment documents within the BKKBN, PM-
pline and Compensation on Performance Batik MSMEs Em- PRB Results Report 2019, SAKIP Evaluation Report 2019, text-
ployees in Yogyakarta City, Indonesia” (Efendi et al., 2020). books, journals, and scientific articles related to the issue re-
The purpose of this study is to determine the mediation of work searched.
motivation on the effect of work discipline and compensation The focus of the research was carried out at the head of-
on employee performance. The result shows that work moti- fice of BKKBN, which consists of seven Echelon I Work Units,
vation mediates the relationship between work discipline and namely the Main Secretariat (Sestama), Main Inspectorate (Ir-
compensation for employee performance. tama), Deputy of Population Control (Dalduk), Deputy of Fam-
Çetin and Askun Celik (2018) describe the relationship be- ily Planning and Reproductive Health (KBKR), Deputy of Pros-
tween occupational self-efficacy on performance through intrin- perous Family and Family Empowerment (KSPK), Deputy of
sic motivation. The results of the multilevel analysis show that Advocacy, Movement and Information (ADPIN), and Deputy
occupational self-efficacy and intrinsic motivation have a sig- of Training, Research, and Development (Latbang).
nificant effect on performance, and intrinsic motivation serves The population is a collection of all elements in which the
as a partial mediator in this relationship. By considering the researcher can draw conclusions, while the sample is part of the
theoretical review and results of previous research, the Second population and can be representative of the population (Cooper
Hypothesis (H2 ) is: and Schindler, 2014). The population in this study was Civil
H2 : There is a positive and significant influence between Servants (PNS) who worked in the head office BKKBN with
happiness at work on employee performance through work mo- a minimum working period of one year, consists of 631 civil
tivation. servants. In order to be able to photograph the characteristics
and reflect the population accurately, in this case, the employees
Analysis Model
in the head office BKKBN environment related to happiness at
Based on the theoretical framework and hypotheses that have work, work motivation, and employee performance, this study
been described previously, an analysis model is prepared that uses a total sampling technique, by taking the entire population
describes the relationship between variables. The following as the research sample.
is the relationship between the variables of happiness at work, Before further research is carried out, first a pre-test is car-
work motivation, and employee performance.
 Agustien and Soeling / Hasanuddin Economics and Business Review 04:2 (2020) 58–64 61

ried out which aims to test the feasibility of the research ques- 4. ANALYSIS AND DISCUSSION
tionnaire. The pre-test was carried out by distributing initial
questionnaires to 30 civil servants in the head office BKKBN Descriptive analysis in this study describes the characteris-
environment. The validity test of the pre-test questionnaire was tics of respondents who are seen based on the frequency and
carried out using the factor analysis method. Factor analysis percentage of age, gender, latest education, duration of work as
used to test the validity of research instruments is by using the a civil servant in BKKBN, position, and work unit. To map the
value of the Kaiser-Meyer-Olkin Measures of Sampling Ade- characteristics further, the researcher cross-tabulated the data
quate (KMO-MSA), Barlett’s Test of Sphericity (BTS) in the on the characteristics/identity of the respondents with latent vari-
KMO and Barlett’s Test Table, and Anti-Image Correlation in ables. Meanwhile, to interpret the attitude of the respondents to
the Anti-Image Matrices Table. The variable indicator is de- the measured variable, the mean score is used. The average
clared valid if the KMO-MSA value is¿ 0.6, the BTS value is value is then grouped into an interval scale to see the tendency
¡0.05, and anti-image correlation value is¿ 0.5. Meanwhile, to of the respondent’s attitude towards the statement.
determine the reliability of the research instrument was carried The interval scale in this study consists of five classes with
out using the Cronbach-α value. An indicator is declared valid a scale range of 0.8. Work Motivation and Employee Perfor-
if the value of Cronbach-α ≥ 0.6 (Hair, 2014). The results of mance Variables have interpretations ranging from ”Very Low”,
the validity test showed that the indicators stated in the ques- ”Low”, ”Medium”, ”High”, to ”Very High”. Meanwhile, the
tionnaire are all valid, so there is no need to reduce them, as Happiness at Work variable has interpretations of ”Unhappy”,
stated in Table 2. ”Less happy”, ”Fairly Happy”, ”Happy”, and ”Very Happy” for
the five classes from the lowest to the highest level. The aver-
age value of respondents’ perceptions on each variable can be
Table 2: Validity Test Results
seen in Table 4.
Variables KMO BTS Anti Im- Exp.
MSA age Cor-
Table 4: Mean Score Test Results
relation
Variables Mean Score Category
Happiness at 0.713 0 >0.5 Valid
Happiness at Work 3.774 Happy
Work
Work Motivation 3.949 High
Work Motivation 0.817 0 >0.5 Valid
Employee Performance 4.131 High
Employee Per- 0.731 0 >0.5 Valid
formance Source: Data processed
Source: Data processed
The results of the mean score per indicator test show mixed
results. However, most employees have a positive perception,
so the mean score on the work motivation variable and perfor-
Table 3: Reliability Test Results mance is in the high category, and in the happy category for the
Variables Cronbach- α Explanation happiness at work variable.
(≥0.60) However, when cross-tabulation was carried out between
Happiness at Work 0.902 Reliable the characteristics of age and length of work at the BKKBN
Work Motivation 0.913 Reliable against each of the latent variables as stated in Table 5, it was
Employee Perfor- 0.884 Reliable found that there were respondents who gave the lowest score.
mance Happiness at Work is the variable with the lowest score. This
certainly affects the achievement of the mean score on this vari-
Source: Data processed able, so that happiness at work has the smallest mean score
compared to other variables.
Based on the data collected through the pre-test, it can be Cross-tabulation of the age level category of work motiva-
seen if all of these variables are included in the reliable category tion shows that employees aged 31-50 years are those who have
with all Cronbach-α values above 0.60. Therefore, all indica- high motivation to work. For the cross-tabulation category for
tors as outlined in the questionnaire were declared eligible for a long time working at BKKBN, those who have long worked
use in further research. at BKKBN have high intensity, direction, and persistence.
Data analysis was performed using the structural equation Employee performance is the variable that gets the high-
modeling approach with the partial least square (SEM-PLS) est mean score, as 4.131. Because this variable gets the high-
method. Data processing using SEM is based on a research est value from the respondents, as 73 respondents (36.5%) and
model that has relationships between variables that occur simul- the least gets the lowest score. It is inversely proportional to
taneously, where one dependent variable will become the inde- the happiness at work variable which only received the highest
pendent variable in the next relationship. This analysis model score out of 42 employees (21%) and the most score was the
applies to this study, in the work motivation variable which is lowest.
the dependent variable of happiness at work and is an indepen- The measurement model is a model that represents the rela-
dent variable for the employee performance variable. tionship between latent variables and their indicators. Accord-
 Agustien and Soeling / Hasanuddin Economics and Business Review 04:2 (2020) 58–64 62

Table 5: Crosstabulation of Age and Length of Work in BKKBN with Latent Variables
Happiness at work Work Motivation Employee Performance
Category I II III IV V I II III IV V I II III IV V
21-30 1 1 5 5 1 6 7 1 10 2
31-40 3 2 21 86 20 2 16 75 39 2 7 76 47
Age (year) 41-50 2 1 7 15 11 2 3 18 13 1 2 19 14
51-60 9 9 10 8 9 9
> 60 1 1 1
Total 6 4 33 115 42 2 2 25 110 61 1 2 10 114 73
Duration of 5-Jan 1 1 6 11 1 5 14 1 1 18 1
work 10-May 1 1 17 42 17 1 9 49 19 5 47 26
(year) >10 4 2 10 62 24 2 1 11 47 41 1 2 4 49 46
Total 6 4 33 115 42 2 2 25 110 61 1 2 10 114 73
Source: Data processed

ing to Hulland (1999), a good measurement model must meet was carried out by calculating the value of R² and the Goodness
three criteria, namely reliability, convergent validity, and dis- of Fit Index (GoF).
criminant validity.
Testing the convergent validity of latent variables is done by Table 7: R² Test Results
looking at the Average Variance Extracted (AVE) value. The
Construct R Square R Square Adjusted
measurement model is stated to have convergent validity if it
has an AVE value ≥ of 0.5, meaning that if AVE is equal to 0.5 Work Motivation 0.624 0.622
or more, it means that the model is good (Wong, 2013). Employee Performance 0.498 0.492
Meanwhile, to measure the internal consistency of the mea- Source: Data processed
suring instrument, a reliability test was carried out by looking at
the composite reliability value. The model has declared reliable R2 test results of 0.624 on the construct of work motiva-
if it has a composite reliability value above 0.7 (Hair, 2014) and tion indicate the influence of happiness at work variable on
Cronbach-α ≥ 0.6. work motivation by 62.4%, the remaining 37.6% is explained
Figure 2 shows the structural model of the study, which by other variables outside of it. While the employee perfor-
shows that all indicators in each construct have a factor load- mance construct has an R² value of 0.498, which means that
ing above 0.5. The results of cross-loading between indicators the work motivation variable acts as an exogenous latent vari-
of different constructs are not greater than the loading factor on able and affects employee performance by 49.8%, the remain-
the indicators of variables HW, MK, and KP. So that this model ing 50.2% is influenced by other variables outside of work mo-
is declared to meet the requirements of discriminant validity. tivation.
The next test is done by calculating the GoF value. GoF
Table 6: Convergent Validity and Reliability Test Results analysis is carried out to validate the overall model. The GoF
value is obtained from the square root of the average AVE mul-
Construct AVE Comp. Cron-
Relia- bach-α tiplied by the R2 (Tenenhaus et al., 2004).
bility
Happiness at Work 0.624 0.948 0.94 AV E = (HW + MK + KP)/3
Work Motivation 0.609 0.933 0.919 R2 = (R2 MK + R2 KP)/2
Employee Performance 0.696 0.948 0.936 q
Source: Data processed GoF = AV E.R2
= 0.600
Based on Table 6, it can be concluded that the outer model
of this study also meets the requirements of convergent validity A GoF value of 0.600 indicates that the model is fit or has a
and reliability. Because both the AVE value, composite relia- high level of conformity.
bility, and Cronbach-α meet the minimum value requirements. The hypothesis testing is done by looking at the path co-
The structural model analysis was conducted to examine the efficient value, p-value, and t-statistic. The following are the
relationship between exogenous latent variables and endoge- path coefficient values, p-value, and t-statistic in both the di-
nous latent variables, as well as the role of mediation in the rect relationship and the indirect relationship which includes
model stated in the hypothesis. Inner model testing in this study the mediating variables.
 Agustien and Soeling / Hasanuddin Economics and Business Review 04:2 (2020) 58–64 63

Figure 2: Structural Model

the path coefficient value in this indirect relationship becomes

Table 8: Hypothesis Test Results
0.562 and the probability value is 0.000. These results indicate
Ha Ekso. Endo. Med. Path p- t that work motivation can mediate the relationship between hap-
Coeffi- value –stat. piness at work and employee performance. The t-statistic value
cient in this relationship is 7,745 which indicates a significant effect.
H1 HW KP - -0.009 0.927 0.092 So that overall it can be explained that the work motivation vari-
H2 HW KP MK 0.562 0 7.745 able is able to significantly mediate the relationship between
Source: Data processed happiness at work variable and employee performance. This is
caused by there is a significant positive effect between happi-
ness at work on work motivation, and between work motivation
The first hypothesis testing to explain the direct effect be- on employee performance.
tween happiness at work as an independent variable on em- The direct effect between happiness at work on work mo-
ployee performance as the dependent variable. The path coeffi- tivation had a path coefficient of 0.790 and a probability of
cient value that shows the magnitude of the influence between 0.000 indicate a positive effect, t-statistic value which shows
variables has a negative value and a probability value at a p- the significance of the relationship is greater than 1.96, which
value of 0.927 and a t-statistic value of less than 1.96. It can is 17,767. Likewise, the indirect effect between work motiva-
be concluded that H1 is also rejected and H0 is accepted. It can tion on employee performance, the path coefficient value that
be concluded that there is no significant positive effect between shows the magnitude of the influence between latent constructs
happiness at work on employee performance. has a value of 0.712 with a p-value of 0.000, and the t-statistic
The results of this study contradict the results of previous value is 7,731.
studies which mostly show a positive relationship between hap- It can be concluded that H2 is accepted, and there is a signif-
piness and employee performance, as was done by Rego and icant positive influence between happiness at work to employee
Cunha (2008) which stated that happiness is a tool that can performance through work motivation. There are several lim-
maximize the improvement of personal quality and employee itations in this article, which can be used as input for further
performance, and Bataineh (2019) also stated happiness at work research: 1. This research was conducted at the head office of
has an effect on employee performance. BKKBN, which consisted of 7 (seven) Echelon I work units, 29
The second hypothesis testing is what tests the influence Echelon II work units, but did not involve working units at the
of happiness at work on employee performance through work provincial level or KB technical advisors in the field who were
motivation as a mediating variable which is a test of indirect in- in direct contact with the community. 2. The level of partici-
fluence. If the direct relationship between happiness at work on pation in filling out the questionnaire was not satisfactory. The
employee performance shows a negative path coefficient, when questionnaire was distributed through the google form platform
the two variables are mediated by the work motivation variable, to all civil servants in the head office BKKBN with a total sam-
 Agustien and Soeling / Hasanuddin Economics and Business Review 04:2 (2020) 58–64 64

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