Literature Review of Variables Affecting Employee Performance in Automotive Companies

Tri Wahyu Putranto¹*, Nur Wening², Sri Handayani³

^1,2,3Universitas Teknologi Yogyakarta, Sleman, Indonesia

Email: triwhyp@gmail.com¹, weninguty@gmail.com², srih2488@gmail.com³

Abstract: Employee performance refers to the measurable outcomes of an employee's work, both quantitatively and qualitatively, in fulfilling tasks assigned by the organization. In the highly competitive automotive industry in Indonesia, where significant potential coexists with intense rivalry, companies expect their employees to deliver peak performance. Numerous studies have analyzed the influence of various independent variables on employee performance in automotive companies, aiming to identify the factors with the most substantial impact. This study utilizes a Systematic Literature Review (SLR) of journals meeting specific criteria to explore the relationships between these variables and employee performance. The findings reveal three key independent variables—Performance Appraisal, Organizational Culture, and Performance Environment—that significantly influence employee performance. These results offer practical implications, serving as a guide for policymakers and organizational leaders in the automotive industry to develop strategies that enhance employee performance. By focusing on these variables, companies can optimize their workforce effectiveness, maintain competitiveness, and adapt to evolving industry demands.

Keywords: Employee Performance; Organizational Culture; Performance Appraisal; Performance Environment.

INTRODUCTION

The automotive industry is one of the sectors experiencing significant growth worldwide, including in Indonesia (Rakkarn, 2024). According to CNN Indonesia, in 2022, Indonesia ranked 11th globally in terms of domestic four-wheeled vehicle production, trailing behind Thailand, which holds the 10th position and leads car production in ASEAN. However, when it comes to domestic sales, Indonesia surpasses its ASEAN counterparts, securing the top position. This indicates that the automotive market, particularly for cars, is not only competitive but also highly promising. (Source: CNN Indonesia)

To address the article's gaps, further elaboration on the challenges faced by the industry, such as fluctuating workforce performance amidst rapid technological advancements and market competition, is necessary (Susitha et al., 2024). Highlighting these issues can strengthen the urgency and contextual relevance of exploring factors that influence employee performance in the automotive sector.

Based on sales data, Toyota remains the market leader in Indonesia with 325,395 units sold in 2023, followed by Daihatsu with 194,108 units. Honda ranks third with 128,010 units, while Suzuki takes fourth place with 82,244 units. Mitsubishi Motors follows closely with 81,792 units, Hyundai with 35,736 units, Mitsubishi Fuso with 33,283 units, Isuzu with 31,597 units, Hino with 27,729 units, and Wuling rounds out the top ten with 25,992 units. (Source: Tempo)

The automotive market in Indonesia promises to increase competition between brands and even between car dealers, and this encourages every company to achieve the best performance (Irawan et al., 2018). The company's performance cannot be separated from the performance of the employees themselves. Therefore, the researcher argues that it is important to know the variables that have a dominant influence on employee performance in automotive companies. The results of this research can be used as a consideration in making company policies so that employees can provide their best performance to achieve company goals.

According to (Kusjono & Ratnasari, 2019), Performance is very important for the progress of an organization or company; the higher the performance of employees, the easier it will be for the organization to achieve organizational goals. According to Performance, it is the result of work in terms of quality and quantity achieved by a person in carrying out his duties with the responsibilities given. States that performance is the result of the work functions of a person or group in an organization at a certain period of time, which reflects how well the person or group meets the requirements of a job in an effort to achieve organizational goals. From these three theories, it can be seen that the three agree that employee performance is the result of employee work based on their respective functions, which can be measured both in quality and quantity and has a positive relationship with the company's performance (Ardianata et al., 2024).

According to (Afandi, 2018) There are 9 indicators of employee performance, namely the quantity of work output, namely all kinds of forms of units of measurement related to the number of work results that can be expressed in numerical measures or other numerical equivalents. The quality of work results in all kinds of units of measurement related to the quality or quality of work results that can be expressed in numerical measures or other numerical equivalents. Efficiency in carrying out tasks, namely various resources, wisely and in a cost-effective way. Work discipline, namely obedience to applicable laws and regulations. Initiative is the ability to decide and do something right without having to be told, being able to find what should be done with something around you, and trying to keep moving to do some things even though the situation is getting more difficult. Accuracy is the level of suitability of the results of work measurement, whether the work has achieved what goal it has achieved (Kiresuk et al., 2014). Leadership is the process of influencing or setting an example by a leader to his followers in an effort to achieve organizational goals. Honesty is one of the human traits that is quite difficult to apply. Creativity is a mental process that involves the emergence of ideas. From the nine indicators, it can be seen that employee performance is an output (result) that comes from within the employee himself or from reactions/relationships with other employees or with the company/organization. By understanding the indicators, the researcher hopes to find out the variables that have the most influence on employee performance (Eliyana et al., 2019).

Seeing the importance of employee performance to the performance of the organization/company, many studies have been conducted to identify variables that affect employee performance, but based on the results of the research collected by the researcher, there are still many differences of opinion on the variables that affect employee performance, this results in the research conducted previously not focusing on certain variables only.

So, in this study, the researcher hopes to find out the variables that most affect employee performance so that these variables can be used as the basis for the next research so that they can be used as a reference by organizations/companies in making policies.

MATERIALS AND METHODS

This research employs the Systematic Literature Review (SLR) method, a specific type of literature study designed to systematically synthesize existing knowledge within a particular domain. According to the European Journal of Information Systems, a literature study synthesizes prior knowledge, highlights differences, identifies gaps, and explores intriguing aspects from multiple perspectives. This approach aims to provide a clear direction for future research. To enhance transparency, the criteria or metrics used to evaluate and categorize the significance of each variable in the analysis will be explicitly outlined, enabling readers to understand the decision-making process in selecting key variables.

Based on this definition, it can be concluded that the literature study does not aim to contribute to the theory but to explain and classify what has been produced by previous researchers. Even so, as a research method, the study of literature still has the opportunity to build a theory. There are 4 (four) steps of SLR as expressed by which consist of Determining the objectives of SLR, Initiation, and selection of Libraries, Analysis, and finally, the plan for the presentation of results (Kharisma, 2023).

The first stage is to determine the objectives of the SLR, the purpose of this SLR is to be able to determine the variables that have the most influence on employee performance so that they can be used as references in the next research and as references in making appropriate company policies in an effort to improve employee performance.

The second stage is the initiation and selection of the Library. The researcher collects journals related to research on employee performance in automotive companies through Publish or Perish and Google Scholar with the keyword "Automotive Company Employee Performance." The journals obtained are re-selected, and 7 journals are obtained that are most suitable for the problem that the author wants to raise. The researcher also used several research journals that had the same variables but on different objects as comparisons and reinforcements (Vázquez-Canteli & Nagy, 2019).

The third stage is Analysis, from the journals that have been successfully collected, the researcher tries to analyze the results of the research that has been carried out to be able to choose the variable that has the most siginifican influence from the variables used in the previous study.

The fourth stage of the result presentation plan is to convey the researcher's ideas about the variables that have the most significant influence on employee performance so that they can be used as a reference in future research (Benge et al., 2012).

Figure 1. SLR Steps

RESULTS AND DISCUSSION

In this study, the author uses a literature review by collecting journals related to variables that affect employee performance in automotive companies and obtained the following journals:

Table 1. Target Journal

It	Writer	Year	Heading	Variable	Research Methods	Publisher
1	Euricoh Hamonangan Pardede, Dyah Ayu Saputri, Zulia Eka Pusparini, Natasha Queenta, Dinda Nurdianah, Jumawan Jumawan	2023)	The Effect of Job Appraisal on Employee Performance at PT Astra Honda Motor	Performance Appraisal, Employee Performance	Simple linear regression	IJM: Indonesian Journal of Multidisciplinary
2	Irma Gustiana Andriani	2018)	The Effect of Work Stress, Organizational Commitment and Job Satisfaction on Automotive Company Turnover Intention	Work Stress, Organizational Commitment, Job Satisfaction, Company Turnover Intention	Nonprobability sampling with saturated sampling method	Journal of Business and Accounting
3	Rosye Rosaria Zaena, Muhammad Mujtaba Mitra Zuana, Ade Risna Sari, Sugiarti, Rinandita Wikansari	2022	Analysis of the Role of Work Environment, Work Discipline and Organizational Culture on Employee Performance in National Automotive Manufacturing Companies	Work Environment, Work Discipline, Organizational Culture, Employee Performance	Quantitative research based on the philosophy of positivism	Management Studies and Entrepreneurship Journal
4	Joni Prihatin, Uli Wildan Nuryanto, Muhammad Suparmoko	2021	The Role of Communication Style on Motivation in the Automotive Manufacturing Industry in Tangerang City	Communication Style, Motivation	quantitative approach with SEM PLS data analysis and Smart PLS 3.2.9 analysis tools	National Conference on Applied Business, Education, & Technology (NCABET)
5	Imam Jayanto, Fatkhuri, Eka Kurnia Saputra, Samuel PD Anantadjaya, Irma M. Nawangwulan	2023	The Effect Of Job Satisfaction And Compensation On Performance Of Employees In Multinational Automotive Company	Job Satisfaction, Compensation, Employee Performance	Multiple Linear Regression Analysis	COSTING: Journal of Economic, Business and Accounting

Table 2. Target Journal

It	Writer	Year	Heading	Variable	Research Methods	Publisher
6	ST Rahmaniar, Chalid Imran Musa, M. Ikhwan Maulana	2022	The Influence of Organizational Culture on Employee Performance at PT Hadji Kalla Bone Branch	Organizational Culture, Employee Performance	Quantitative description using simple regression analysis	Decision Journal

From the journals obtained, it was found that there were 9 (nine) variables that were used as independent variables for employee performance, namely Performance Assessment, Work Stress, Organizational Commitment, Job Satisfaction, Work Environment, Work Discipline, Organizational Culture, Communication Style, and Compensation.

Based on the summary of the journal in Table 1, the researcher included Figure 1, which shows the publication year of the journal that the researcher took in this discussion. Figure 2 shows a diagram of the independent variables used.

Figure 1. Year of Journal Publication

Figure 2. Independent Variables Used

From the variables and research methods carried out in the journal above, the following conclusions are obtained:

Table 3. Research Results

It	Variable	Method	Research Results
1	Performance Appraisal, Employee Performance	Simple linear regression	There is a positive and significant influence between work appraisals on employee performance at PT Astra Honda Motor. This shows that the better the work assessment carried out by the company, the higher the performance of employees in the company.
2	Work Stress, Organizational Commitment, Job Satisfaction, Company Turnover Intention	Nonprobability sampling with saturated sampling method	1. Work stress has a significant effect on employee performance. 2. Organizational commitment and job satisfaction have no effect on the performance of the karayawan.
3	Work Environment, Work Discipline, Organizational Culture, Employee Performance	Quantitative research based on the philosophy of positivism	1. The Work Environment has an influence and is significant on Employee Performance 2. Work Discipline has an effect and is significant on Employee Performance 3. Organizational Culture has an influence and significance on Employee Performance
4	Communication Style, Motivation	quantitative approach with SEM PLS data analysis and Smart PLS 3.2.9 analysis tools	Communication style has a significant effect on work motivation
5	Job Satisfaction, Compensation, Employee Performance	Multiple Linear Regression Analysis	1. Job satisfaction has a positive and significant influence on employee performance. 2. Compensation has a positive and significant influence on employee performance.
It	Variable	Method	Research Results
6	Organizational Culture, Employee Performance	Quantitative description using simple regression analysis	Organizational Culture has a positive and significant influence on employee performance.

From the two tables above, it is known that there is still a significant distribution of variables so that the research is not focused on the variables that actually have the most significant influence on employee performance. Therefore, the researcher tries to describe the results of the study based on each variable and compare it with similar studies under different conditions.

The first variable is Performance Assessment (Pardede et al., 2023), which argues that Performance Evaluation has a positive and significant influence; this is in line with previous research that has been conducted by several researchers. According to employee performance analysis, it can improve employee performance and be used as a basis for decision-making related to promotions, career development, and employee payroll. According to (Ugoani, 2020), employee performance appraisal can provide significant benefits for employees and organizations; these benefits include improving employee motivation and performance, providing constructive feedback, employee performance appraisal can provide significant benefits for employees and organizations, these benefits include improving employee motivation and performance, providing constructive feedback and becoming the basis for career development. Performance appraisal (Hanifa et al., 2024) is a process that allows organizations to know, evaluate, measure, and assess the performance of their members appropriately and accurately. This activity is very related and influential to the effectiveness of the implementation of human resource activities in the company, such as promotion, compensation, training, career management development, and others. This is because the performance oversight function can provide important information to the company to improve decisions and provide feedback to employees on their actual performance (Mpandle & Majam, 2024).

From some of the theories about performance appraisal above, it can be concluded that in a company situation with good management, performance appraisal will be used as a tool to evaluate employee performance as a reference to provide feedback, be it in the form of rewards or penalties. A good performance appraisal will be able to provide a sense of justice for both employees and the organization/company (Karkoulian et al., 2016). The aspect of organizational justice is very important in the life of the organization because if this justice does not exist, it can lead to a decrease in commitment, the occurrence of crime in the work environment, and the desire to protest. Therefore, the researcher agrees that performance evaluation has a positive and significant impact on employee performance because, with a good performance assessment, employees will maximize their performance to be able to get a good assessment and get feedback in the form of rewards from the company. This can also be seen if the performance assessment carried out is not good or not based on organizational justice; then, employees can argue that it is useless to provide the best performance if the performance assessment does not reflect their actual performance.

The next variable is work stress, which is a state of tension that creates a physical and psychological imbalance, which affects the emotions, thought processes, and condition of an employee (Daniel, 2019). Too much stress can threaten a person's ability to deal with the environment. According to Ardianata et al. (Ellyzar, Yunus & Amri, 2017: 37), work stress is a feeling of pressure experienced by employees in a job. This work stress can be seen in unstable emotions, feelings of unhappiness, loneliness, difficulty sleeping, not being able to relax, anxiety and others. According to Robbins (2015) Each individual has different levels of stress even though it is assumed to be in the same stress drivers. Individual differences can determine the level of stress that exists (Robbins & Judge, 2015).

Based on the stress theory above, it can be seen that each employee's response to stress can be different even though they face the same driving factors. Stress can come from work demands, work environments, or personal problems, so according to researchers, stress can be applied as a variable that affects performance, but vice versa. It can also be a variable that is influenced by performance variables.

The next variable is Organizational Commitment, according to Robbins and Judge (2015) stating that, organizational commitment is characterized as a state in which an employee takes sides with a certain organization and its goals and desires to maintain membership in the organization. Employees with high organizational commitment will involve the organization in all activities and work they do and have the desire to contribute to all organizational activities so that organizational goals can be achieved. According to Muchlas (Bromberg, 2016), the factors that affect organizational commitment are personal, situational, and positional; individuals have certain personality traits that are studied extroverted, have a positive view (optimistic), tend to be more committed.

Based on the theory of Organizational Commitment above, the author concludes that employee loyalty is a process that is influenced by several factors so that this variable has an influence but is indirect.

The next variable is job satisfaction. Robbins and Judge (2015) stated that job satisfaction is a positive feeling that employees have towards their work. Employees who have a high level of job satisfaction have a positive attitude towards their work. On the other hand, a person with a low level of job satisfaction has negative feelings about his job. States that workers who have low job satisfaction will have a high desire to leave the organization, especially when they have many other job alternatives to go to and when they have high human capital. However, from the results of previous research, the job satisfaction variable does not have an influence on an employee's decision to stay or stay in a company, so it can be concluded that it also has an insignificant influence on employee performance.

The next variable is the work environment; according to Pandi Afandi (Afandi, 2018), the work environment is something that exists in the environment of workers that can affect them in carrying out their duties, such as temperature, humidity, ventilation, lighting, noise, cleanliness of the workplace and the adequacy of work equipment. States that in the work environment, both facilities and infrastructure are related to employees who are carrying out their activities, so they are very influential in their activities. According to (Sabrina, 2023), the work environment is something that exists around employees, so it affects a person to get a sense of security, comfort, and satisfaction in doing and completing the work given by the boss. The work environment is a direct work interaction with someone who has a higher position, the same position, or a lower position.

From some of the theories about the work environment above, it can be known that the work environment can be in the form of physical conditions in the workplace or relationships between employees and superiors. It can also be seen that these conditions are very related to employees in carrying out their activities, so good and supportive working environment conditions, both physical and psychological, will provide a sense of comfort to employees and can affect employee performance.

The next variable is organizational culture; according to Wahab in Tobari (2022a), organizational culture is a system of values, beliefs, and habits in an organization that interacts with the structure of the formula system to produce norms of organizational behavior. According to Edgar in Taryaman (2022b), the basic assumption pattern found or developed by a group of people is when they learn to solve problems, adjust to the external environment, and integrate with the internal environment. These basic assumptions have been proven to be well applied to solve a problem they face and are considered valid. Therefore, it is taught to new members as the right way to understand, think, and have a quadrant understanding in relation to the problem.

Entitled "The Influence of Work Discipline, Organizational Culture and Work Environment on Employee Performance" explains that Organizational Culture has a simultaneous effect on Employee Performance, this is evidenced by the better the culture that is expanded within the scope of the company's organization, the better the level of performance produced by employees to achieve the results of organizational goals.

The next variable is Communication Style, where the communication style a leader to give orders to his subordinates on what to do must be done must use the appropriate communication method, if the style used is in the form of a controlling style, what happens is that employees become uninterested because they will feel forced to comply with the views conveyed by their superiors so that sometimes they smell of criticism and with a negative tone. The communication style of a boss to a subordinate will make changes in his subordinates, such as causing symptoms of feelings, psychology and emotions so as to encourage his subordinates to do or act something according to their impulses. This is what causes communication style to be very important in creating motivation in a team, which ultimately affects the company's performance. Motivation will create a person's work passion so that they want to work together, work effectively, and be integrated with all the power and effort to achieve satisfaction (Lysova et al., 2019).

From some of the communication style theories above, it can be seen that communication is an interaction between superiors and subordinates, which is a form of work environment that has a wider scope. In addition, communication style is also influenced by the skills/abilities of superiors in choosing the right communication method for conveying something to subordinates. So with the right delivery, it is hoped that employee feedback in the form of performance can be in a positive form in accordance with the expectations of superiors/organizations.

The next variable is Compensation. Compensation is all income in the form of money, direct or indirect goods that employees receive in exchange for services provided to the company. Compensation can be in the form of financial or non-financial; compensation in a financial form such as salary, commission, bonus, and allowance. Meanwhile, competition in non-financial forms, such as employee training, responsibility, and a good work environment. According to Mathis (Anggraini et al., 2019), remuneration must have a positive impact on both employees and the organization.

It is no longer common knowledge that one of the purposes of finding a job is to get compensation/salary according to expectations and needs, but when viewed from both sides, namely workers and employers, the provision of salaries must consider the impact on both parties so that it can have a positive influence.

From several studies that researchers have collected, it can be seen that each researcher has different views regarding the variables that have the most significant influence on employee performance. This will give a bad impression if the research is used as a reference in making company policies in an effort to improve employee performance because the policies taken are not appropriate because they have less influence on employee performance.

According to the researcher, there are three variables that have the most influence on employee performance which can include other variables that also have a significant influence on employee performance. These variables include Performance Assessment, Organizational Culture and Work Environment.

Performance Assessment is a variable that has a significant influence on employee performance if applied professionally by the company. With the implementation of professional employee performance, it is hoped that the company will provide an objective assessment of employee performance so that employees will feel treated fairly and there is a sense of responsibility of employees for their work and a sense of belonging to employees to the company because of the company's recognition of the performance carried out. Performance appraisals used by companies as the basis for making policies such as salaries, bonuses, promotions, etc., can provide motivation that will affect employee performance; then, it can be concluded that performance variables also include compensation variables. Performance appraisal can also include job satisfaction variables where, with an objective performance assessment, the results of the assessment show objective recognition by the employer so that it has an impact on employee satisfaction with the work they have done because it is in accordance with the organization's assessment.

Organizational culture is the next variable that provides the most significant influence because it is expected to create agreements, common perceptions, and expectations from each member of the organization. In terms of interaction between employees and between superiors and subordinates, organizational culture can represent the variables of communication style. With the same perception and expectations, the message conveyed can be done well and understood by both parties. Organizational culture can also represent the variables of work discipline by creating agreement on rules in the work environment. With a supportive organizational culture, it can have a positive influence on employee performance.

Work environment is the third variable that has the most significant influence, according to researchers. Performance environment variables can represent job satisfaction variables. With adequate and comfortable workplace facilities, job satisfaction can be provided for employees, and a good work environment and a sense of comfort will be able to have a positive impact on employee performance. The work environment is also a variable that cannot be separated from the Organizational Culture, where the work environment must also be in line with the Organizational Culture as an example of the creation of a badminton court in the office environment as an effort to realize a good and supportive relationship between employees, superiors and subordinates.

CONCLUSION

Based on the results of the reviewed literature using the keyword employee performance in automotive companies, six journals were identified as the most relevant. These studies highlight nine variables that influence employee performance, with seven variables showing a significant effect and two variables having no significant impact.

The findings from these studies, according to the researcher, suggest that the broad focus on determining variables may lead to fragmented conclusions, potentially undermining the effectiveness of organizational policy-making if the insights are not well-targeted. Moreover, analysis of the reviewed journals reveals overlaps among the seven significant variables. To address this, the researcher has consolidated these variables into three key factors to provide a more focused and actionable framework for future studies. This approach aims to enhance the applicability of findings for real-world decision-making and organizational improvements in the automotive industry. Future research should empirically test these three consolidated variables across different contexts to validate their broader relevance and utility.

These variables are performance assessment, organizational culture and work environment. Where of the seven variables that have a significant influence based on previous research, they can be represented into these 3 (three) variables. Performance appraisal variables can represent performance appraisal and compensation variables. Organizational culture variables can represent the variables of organizational culture, work discipline and communication style. Work environment variables can represent the variables of work environment, work stress and job satisfaction.

Based on this conclusion, the researcher provides suggestions for further research to focus on these 3 variables, namely performance assessment, organizational culture and work environment as variables that affect employee performance. And in making policies, the organization can focus on these 3 variables so that it can have a significant impact on employee performance.

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© 2024 by the authors. Submitted for possible open access publication under the terms and conditions of the Creative Commons Attribution (CC BY SA) license (https://creativecommons.org/licenses/by-sa/ 4.0/).