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Overcoming the Challenges of Nepotism to Create a System Fair and Transparent Selection in Business Entities Regional Property in North Sumatra Nurul Huda Chasanah; Muhammad Syahrizal Nasution; Debora Tifani Turnip; Ritha F. Dalimunthe; Prihantin Lumbanraja
Green Inflation: International Journal of Management and Strategic Business Leadership Vol. 1 No. 4 (2024): November : Green Inflation: International Journal of Management and Strategic B
Publisher : Asosiasi Riset Ilmu Manajemen Kewirausahaan dan Bisnis Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61132/greeninflation.v1i4.152

Abstract

The practice of nepotism in the employee selection process at Regional Owned Enterprises (BUMD) in North Sumatra, which has an impact on transparency, fairness and organizational effectiveness. BUMDs have an important role in regional economic development, but nepotism practices often damage the integrity of the recruitment process. Through a qualitative approach and case studies, this research reveals that nepotism creates inequality in employee selection, reduces the quality of human resources, and reduces public trust in BUMD. This article also identifies the factors that cause nepotism and offers solutions in the form of selection transparency, anti-nepotism policies, independent supervision, and outreach to build a culture of meritocracy in BUMD. By overcoming nepotism, BUMD is expected to be able to create a fair and professional recruitment system, thereby supporting the achievement of optimal performance.
The Effect of Career Development and Organizational Commitment on Employee Performance Through Extrinsic Motivation at PT Bank Sumut Kantor Cabang Koordinator Medan Nurul Huda Chasanah; Ritha F. Dalimunthe; Prihatin Lumbanraja
Global Economics: International Journal of Economic, Social and Development Sciences Vol. 2 No. 4 (2025): December: Global Economics - International Journal of Economic, Social and Deve
Publisher : International Forum of Researchers and Lecturers

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70062/globaleconomics.v2i4.438

Abstract

Employee performance is a strategic factor in the success of regional banking organizations that are oriented towards service and achieving business targets. However, empirical evidence at PT Bank Sumut Kantor Cabang Koordinator Medan, indicates that employee performance tends to stagnate in the "Good" category during the 2021–2024 period. This condition is thought to be related to career development that is not yet optimally structured, organizational commitment that has not been fully actualized in work behavior, and inadequate extrinsic motivation. This study aims to analyze the effect of career development and organizational commitment on employee performance through extrinsic motivation as a mediating variable. The study used a quantitative approach with a survey method of employees at PT Bank Sumut Kantor Cabang Koordinator Medan. Data were analyzed using Structural Equation Modeling. The results show that career development and organizational commitment influence extrinsic motivation, and extrinsic motivation plays a role in improving employee performance and mediating the relationship between variables. These findings strengthen the role of extrinsic motivation as an important mechanism in bridging human resource policies and employee performance in regional banking.