The function of Cooperative Agency and Micro Business of Jember Regency is to formulate and to conduct regional policies relating to cooperative and micro business, to evaluate and to conduct regional report relating to cooperative and micro business, to conduct administrative services relating to cooperative and micro business, as well as other functions which are mandated by the regent and related to its duty and function. Conducting the duty and function will create an appropriate condition for cooperative and micro business development in order to be more advanced and updated, and adequately be able to compete with other cooperative development in other regions. 

In the meantime, on the news which had published in jatim.antaranews.com, in 2018, Jember had approximately 1500 cooperative units, but in fact, as many as 302 cooperative units were evaluated to be running on unhealthy business and considered to be ineligible that those cooperative units were suggested be dispersed by Cooperative Ministry. Furthermore, determining whether or not a cooperative unit is healthy/active only if it fulfills three indicators, possessing NIK (Nomor Induk Koperasi) or Cooperative Registration Number, regularly conducting RAT (Rapat Anggota Tahunan) or Annual Conference of Membership for at least three years straight, and made annual reports and records of the turnover and SHU (Sisa Hasil Usaha) or residual income.

In 2020, from the total of 1992 cooperative units in Jember Regency, there were only 532 units were active and the rest were not. The latest data in August 2021, from the total of 1913 cooperative units in Jember, there were 533 units were active and the rest were not. The existence of cooperative units is required to be seriously identified in order to find its alternative solutions. As a result, cooperative units will be able to bring prosperity to all members and society.

The research was a combination of variable usage of previous researches. From the research gap, the researcher integrated other associated variables that thoroughly decided to use different variable which was Cooperative in Jember Regency by taking into account the direct and indirect effect of competence and education and training on the employees’ performance through a stimuli of work motivation. Besides that, according to the four-year-latest researches, the issues were about cooperatives which had not optimally managed its human resources. Each and every cooperative definitely had particular features and demerits, yet the main problems were that the human resource quality and numbers of the organizers and supervisors were quite incompetent in running on the functions of a cooperative. 

Theoretical Review

Competence: The concept has been applied in various aspects of human resource management, even though it is used frequently for recruitment, selection, remuneration system, training and developmental events. According to Ruky the concept of competence has been quite notorious and widely applied by big companies for particular purposes. Several indicators according to Gordon (in Sutrisno, 2009) are (1) Knowledge is a cognitive ability of certain discipline or work field (2) Understanding is cognitive and affective ability possessed by an individual. (3) Value is a standard conduct which has been physiologically comprehended within an individual. (4) Skill is a thing possessed by an individual to do any duty or job which is mandated for him.  (5) Attitude is a feeling and reaction of external stimulus such as happy feeling, pleasant or unpleasant feeling, or even dislike. (6) Interest is a tendency of an individual of doing something more preferable than lass preferable. 

Education and Training (Diklat)

According to Yusuf, training is a part of education. It is specific, practical, and immediate. Specific means that training associates with work which has been done. Practical and immediate mean that it has been trained and it can be directly practiced. Indicators of Education/Training according to Rae  are (1) the content of training, it is a program content which is relevant to the needs of training, and whether or not the training is up to date. (2) The method of training, it is to find out whether or not the training method has been suitable with the trainees’ learning styles. (3) Attitude and skill of the instructors are to find out whether or not they have manner and skill to deliver materials which can courage people to learn. (4) Training period, it is a period of time during material delivery which is needed to be studied and how fast the material is delivered. (5) The facility of training, it is a place to conduct the training whether or not can be controlled by instructors, whether or not it is relevant to the training types, and whether or not the snacks or meals are satisfying. 

Work Motivation

The term was in fact originated from Latin word movere which means courage or to move. Motivation concerns about how to manage the availability of resource and potential so that they can be well collaborated to achieve the decided goals. The indicators of work motivation according to Mangkunegara  in Bayu Fadillah, et al  are (1) liability, it is a personal sense of being responsible to the duty. (2) Work achievement, it is doing something or job sincerely. (3) Chance to be more progressive, it is a desire to obtain a fair salary which is suited with the job. (4) Performance acknowledgment, it is a desire to obtain a higher salary more than usual. (5) Challenging job, it is a desire to learn something which is important for his job.

Performance

According to Farida (2014) Performance was derived from job performance or actual performance which means the real work achievement obtained by an individual. According to Moeheriono performance indicators are commonly classified into six categories: (1) Effective. It is an indicator to measure the level of output suitability in achieving the desirable goals. This indicator relating effectiveness answers the question about whether or not we have done something properly. (2) Efficiency. It is an indicator to measure process suitability creating output with least cost. (3) Quality. It is an indicator to measure the level of suitability between product or service with the needs and expectations of consumers. (4) Punctuality. It is an indicator to measure whether or not the job has been punctually done. Consequently, criteria to measure how long the job is finished are required. (5) Productivity. It is an indicator to measure additional points of a process compared to consumption of values for capital and workers. (6) Safety. It is an indicator to measure thoroughly organization health and the environment of workers or employees referring to the safety aspect.

This was a quantitative research which applied explanatory approach. The variables were competence, education and training, work motivation, and performance. The populations of research were 1659 cooperative employees in Jember Regency. The sampling used nonprobability purposive technique; since it did not provide similar chance or opportunity, as many as 322 employees in Jember Regency were selected. The analysis method applied Path Analysis.

The Table 1 below shows that each used indicator has r value higher than 0,30. It means that the variables of research were decent or valid to be used as data collectors. The test result also shows that each variable has Cronbach Alpha value higher than 0,60. 

Therefore, it can be concluded that all variables of research were reliable.

Furthermore, each path of model would be broken down by using Path Analysis. Each tested path shows direct and indirect effect of competence (X1) and diklat (X2) on work motivation (Z) and the employees’ performance (Y) of Cooperative in Jember Regency. This result of knowing whether or not each path was significant would determine the proposed hypotheses to be accepted or rejected. The path coefficient values can be seen in the following table.

Table 1: Validity and Reliability Test of Research Instruments

The Effect of the Competence Variable (X1) on Work Motivation (Z)

Based on Table 2, it can be seen that the test of competence variable (X1) on work motivation, the beta value (β) is 0.420 with ρ-value of 0.000. Since the ρ-value is smaller than (0.000<0.05), so there was a significant effect of competence (X1) on work motivation (Z). Based on the first hypothesis, competence had an effect on work motivation. After testing and analyzing the data, the result showed that competence had a significant effect on the work motivation of Cooperative employees in Jember Regency, it was proven to be true or H₁ was accepted. In addition, there were significant similarities of results between the current research and the previous researches conducted by Suhermin, Sujiati,  Basori [1] Womb  Amrullah, Dwiyanti [2] which stated that competence had a significant effect on work motivation.

The Effect of the Training Variable (X2) on Work Motivation (Z)

Based on Table 2, it can be seen that for testing the training variable (X2) on work motivation (Z), the beta value (β) is 0.507 with an ρ-value of 0.000. Because the ρ-value is smaller than (0.000<0.05), so H₀ was rejected, thus there was a significant effect of training (X2) on work motivation (Z). Based on the second hypothesis, education and training had an effect on work motivation. After testing and analyzing the data, the result showed that the education and training had a significant effect on the work motivation of Cooperative employees in Jember Regency, it was proven to be true or H₂ was accepted. In addition, there were significant similarities of results between the current research and the previous researches conducted by Hidayat [3] and Ningsi [4] which stated that there was a direct and positive effect on the education and training and the employees’ performance.

The Influence of the Competence Variable (X1) on Employee Performance (Y)

Based on Table 2, it can be seen that the test of competence variable (X1) on the employees’ performance (Y), the beta value (β) is 0.501 with ρ-value of 0.000. Since the ρ-value is smaller than (0.000 < 0.05), so H₀ was rejected, thus there was a significant effect of competence (X1) on the employees’ performance (Y). Based on the third hypothesis, competence had an effect on the employees’ performance. After testing and analyzing the data, the result showed that competence had a significant effect on the performance of Cooperative employees in Jember Regency, it was proven to be true or H₃ was accepted. In addition, there are significant similarities of the results between the current research and previous researches conducted by Suhermin,  Hidayat [3], Sujiati,  Womb, Dwiyanti [2] which stated that there was a positive and significant direct effect of competence on the employees’ performance. In contrast to the results, Basori [1] argued that competence had no significant effect on performance.

The Effect of the Training Variable (X2) on Employee Performance (Y)

Based on Table 2, it can be seen that the test of variable (X2) on the employees’ performance (Y), the beta value (β) is 0.311 with ρ-value of 0.000. Since the ρ-value is smaller than (0.000<0.05), so H₀ was rejected, thus there was a significant effect of training (X2) on the employees’ performance (Y). Based on the fourth hypothesis, education and training had an effect on the employees’ performance. After testing and analyzing the data, the results obtained stating that the education and training had a significant effect on the performance of the Cooperative employees in Jember Regency, it was proven to be true or H₄ was accepted. In addition, there were significant similarities of results between the current research and the previous researches conducted by Hidayat [3] and Ningsi [5] which stated that there was a direct positive and significant effect on the employees’ performance.

The Effect of Work Motivation Variable (Z) on the Employees’ Performance (Y)

Based on Table 2, it can be seen that the test of work motivation variable (Z) on the employees’ performance (Y), the beta value (β) is 0.185 with ρ-value of 0.000. Since the ρ -value is smaller than (0.000<0.05) so H₀ was rejected, thus there was a significant effect of work motivation (Z) on the employees’ performance (Y). Based on the fifth hypothesis, work motivation had an effect on the employees’ performance. After testing and analyzing the data, the result showed that work motivation had a significant effect on the performance of Cooperative employees in Jember Regency, it was proven to be true or H₅ was accepted. In addition, there were significant similarities of the results between the current research with the previous researches conducted by Suhermin, Sujiati, Basori, [1] Womb, Faizal [6] and Dwiyanti [2] stated that there was a significant effect between work motivation on the employees’ performance.

Table 2: Coefficient Value of Direct Effect Path

As the research results had been discussed, the conclusions which ultimately could be drawn are as follows: 

• The competence had a positive and significant effect on the work motivation of Cooperative employees in Jember Regency. 

• The education and training had a positive and significant effect on the work motivation of Cooperative employees in Jember Regency. 

• The competence had a positive and significant effect on the performance of Cooperative employees in Jember Regency. 

• The education and training had a positive and significant effect on the performance of Cooperative employees in Jember Regency. 

• The work motivation had a positive and significant effect on the performance of Cooperative employees in Jember Regency.

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