dc.description.abstract | PT Kutai Timber Indonesia is a company engaged in the processing of forest products i.e. wood. The
company in timber industry is demanded to be more productive in order to meet demand, either
domestically or internationally. The role of the company's employees is important since they are the
major drivers for the smoothness and performance of the company. Therefore, it is necessary to
consider the factors that affect the employee morale such as good incentive system. PT Kutai Timber
Indonesia implements an incentive system known as the welfare program to support better employee
morale. The problems at PT Kutai Timber Indonesia are the high turnover of employees. It can be
seen from the increasing number of the percentage in the turnover rate in 2009-2013 with the
average of 14.6% above the tolerable standard (10%). In addition, anxiety frequent happens in the
work due to job rotation and role conflict due to improper job or lack of clarity regarding the work
procedures, so that employees feel confused in doing the jobs. These things show problems in
employee spirit. To overcome these, the company needs to improve the stimulating factors of the
employee morale, among others through incentive system. This research used quantitative researach
design by explanation method. The population in this study was all permanent employees at
production department of PT Kutai Timber Indonesia in total of 1045 people. The sampling
techniques applied stratified random sampling with proportional type. From the calculation, 290
people were taken as the research samples. The analytical tool used was simple linear regression
analysis. The test results of the coefficient of linear regression analysis showed that incentive system
(X) affected employee morale (Y) at production department of PT Kutai Timber Indonesia | en_US |