RESEARCH RESULTS AND DISCUSSION 1

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3.3 Method of Data Analysis Data analysis tool used in this study is Exploratory

Factor Analysis known as EFA. EFA trying to identify the structure factor of a set of variables that are formed Hair et al., 2007. In the next stage, testing the structural model of research was conducted by using Structural Equation Modeling SEM. SEM is a multivariate statistical technique that allows the testing of a series of causal relationships between variables simultaneously and synchronously so as to provide statistical efficiency. Each exogenous and endogenous variable can be either latent or unobservable construct variables that can be measured directly in the research process Hair, et al., 2010. Data analysis will be conducted using structural equation modeling SEM with the help of software AMOS. SEM is a multivariate technique that combines aspects of factor analysis and multiple regression that allows researchers to test simultaneously simultaneously a series of interrelated dependence relationships between variables and latent constructs measured and also among some latent constructs Hair et al., 2006, h. 710. SEM is used for this study to test a model that has a lot of relationships among latent constructs simultaneously. In addition, SEM can explain the measurement error in the estimation process Cooper dan Schindler, 2008, h.556; Hair et al., 2006, h.711 that can not be explained by the regression. Latent constructs used instead of direct measurements because it will be able to improve the statistical estimation, is better in representing the theoretical concepts, and directly explain the measurement error Hair et al., 2006, h.712. The end result of SEM is always the assessment set of relationship between variables in the model and the assessment can be achieved through many ways Hair et al., 2006, h.732. There are three stages modelling strategy in the application of SEM. First confirmatory modeling strategy, second competing models strategy, and the last model development strategy Hair et al., 2006, h.732. This study has only a single model that consists of multiple relationships among latent constructs are built based on theory in the existing literature and the purpose of this study was to test the proven theory or the relationship between variables in the model. SEM in this case is used to assess how well the proposed model fit with the reality represented by the data collected Hair et al., 2006, h.732. Through this process the theory or the relationship between latent variables are tested. Therefore the modeling strategy chosen in this study is confirmatory modeling strategy aimed at testing proving theory or the relationship between variables in the model proposed. Estimation techniques that will be used is the maximum likelihood estimation MLE. This technique is used because it is efficient and not biased when the normality assumption is met. In addition, this technique is the technique most widely used in most programs SEM Hair et al., 2006, h.743. Another values this technique is that this technique can provide valid results even if only by 50 samples, but the recommended minimum sample to ensure the stability of the MLE solution is 100 to 150 samples Hair et al., 2006, h.741. AMOS program used is because it is easy to use and available in addition to SPSS. AMOS also is the first SEM program that simplifies the display so that researchers can perform analyzes without having to write computer code Hair et al., 2006, h.743. 4. RESEARCH RESULTS AND DISCUSSION 4.1 Factor Analysis toward Service Culture construct Employee perceptions of the service culture dimensions are structured into a number of factors the underlying factors. Factor analysis is used to classify the 31 variable of organizational service culture because this analysis can identify the number of factors that represent the relationships between variables are interrelated. Hair et al. 2010 states that the factor analysis used to examine the relationship between the structures of a large number of variables in defining factor. Table 1 Naming Factor Factor Eigen- value Indicators Loading factor Naming Factor 1 7,961  I feel the work I do is important to satisfy the consumer  Frontline employee’s should feel comfortable when dealing with consumers  It is important for me to gain the trust of consumers  We serve customers with sincere  Employee’s must be diligent service  Establish the relationship between employees and stakeholders is very important in situations of service contacts  An important issue for me to make consumers satisfied  An important part of my job is to build relationships with consumers 0.896 0.858 0.857 0.851 0.850 0.812 0.784 0.569 Relationship employee’s – customer 2 3,553  I was able to control my emotions  I use my own judgment to resolve the many problems that arise in my work  I often sharing experience and knowledge to friends and relatives about the experience in a job that I wrestled 0.819 0.746 0.734 Employee’s Competency The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 186  I can serve and behave well in accordance with customers expectations  I can provide immediate services 0.725 0.639 3 2,446  I feel not enough of protection for employee wages and hours of work  I feel the work currently lacks of clarity career and opportunities for job promotion  I feel earned income is not commensurate with the workload 0.875 0.855 0.794 Benefit and Salary 4 1,793  I know that the publics view of public service institutions is still relatively low  I often think to quit my current job in the service industry  I often think about the work pressure, but not the excellence service to the consumer 0.769 0.696 0.665 Work Pressure 5 1,464  Indonesian local services more task-oriented while the western service more process-oriented  In my organization, local service industries are less proactive compare with that is not local  In my organization, operating instructions adopted directly from Western culture, and may not be appropriate to local circumstances in Indonesia 0.856 0.824 0.504 Mindset service and transferability 6 1,401  I am more willing to serve consumers that having better educational background  I will provide better service if I work for a reputable service organizations 0.816 0.646 Employee preferences 7 1,176  I do not like to serve the demand of consumers who tend to demand something that does not make sense  I want to better serve consumers are polite 0.808 0.551 Respect 8 1,113  I support my family members if they want to work in public sector services company  The organization I would make an appointment without asking to the front line staff about the feasibility of promises made 0.820 0.649 Feeling proud and honored Respondent’s perception for service culture dimensions structured into several factors the underlying factors . Factor analysis is used to grouping 28 indicators of service culture construct. Factor analysis can identify a number of factors which represents the relationship between variables that are interrelated. Hair et al . 2010 mentions that the factor analysis study aims to examine the relationship between the structures of a large number of variables in defining factor. Factor is a linear combination of a large number of variables early or often referred to as a latent variable. Naming the factors is the most subjective in factor analysis. Naming the factors is done by considering the relationship between variables with factor. Results of research conducted found 8 dimensions underlying service culture organizations. Eight dimensions that form the results of the factor analysis, namely: 1 The relationship employee - costumer; 2 employee competency; 3 benefit and salary; 4 work pressure; 5 mindset and transferability; 6 employee preferency; 7 Courtesy; dan 8 Feeling proud and respect. Factor 1 the relationship employee - costumer Indicators that form factor 1 consist of 8 items measuring namely: employees feel their work is important to satisfy the consumer; employees must feel comfortable when dealing with consumers; important for them to gain the trust of consumers; employees to serve customers with sincerity; service employees must be diligent; employees felt it was important to make the customer satisfied; and is important for employees to build a good relationship with the consumer. Various indicators are believed to represent the construct of the relationship employee-customer. Indicators that make up these factors deemed appropriate in representing the construct of of the relationship employee-customer. Measurement indicators that make up this factor is still in line with the measurement indicators found in previous studies Nelson, 2007, so that factor into-one was deemed appropriate named of the relationship employee-costumer. Factor 2 employee competency Indicators that form factor 2 consist of 5 items measuring namely: the ability of employees to control emotions; the ability of employees in solving many problems that arise in the work; the ability to share knowledge to friends and relatives about the experience in the work; attitudes and behaviors that serve well in accordance with customers expectations; as well as the ability to provide immediate services. Similarly, by a factor of unity, indicator statements form the second factor largely remains the same as in previous research The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 187 findings. Based on the indicators that make up the second factor, the second factor is still relevant naming named competencies of employees. Factor 3 benefit and salary The third factor consists of three indicators statement. Based on the pattern of statements that make up the third factor, it leads to benefits and compensation earned by the employees if it is able to perform the duties and functions of their job well, such as career development, job promotion opportunities, and income in kind with the work load. In addition, employees also expect the benefits provided by the company as working hours. Based on the indicators that make up this third factor, considered relevant given the name benefits and salaries. This indicator is also relevant to the findings of previous studies. Factor 4 work pressure The fourth factor is formed by four indicators of measurement. Measurement indicators that make up the four factors include: public perceptions of the public service agencies is still relatively low, there is thought to come out of the current work in the service industry, the size of the working pressure but not the service consumer. This question is relevant indicator called pressure of work because the underlying question asking about the picture illustration on the working pressure in public institutions. Basically working pressure in public institutions, especially in Indonesia is still very low. The low pressure in the work of public institutions in Indonesia has created a culture of service that is stiff, weak, and less serve. Employees in public institutions began to realize the importance of working pressure after the government gives to the employee reward system based on performance. The fourth factor is considered relevant given the name work pressure. Factor 5 service mindset and transferability The fifth factor is also formed by three indicators statements, which include the level of service orientation of public organizations, adoption services operating instructions and operating instructions transferability services adopted from the west into the service industry organizations. Basically statement adopted in the empirical literature on these previous studies used in a business setting and not a public organization. Therefore, although the naming of these five factors are consistent with the findings of previous research, exploration efforts in the context of specific research investigations on public organizations still needed. Factor 6 preferences employees The sixth factor is formed by two indicators statement. Indicators of statements that make up the sixth factor are related to the efforts of front-line employees in providing the best service to customers. Statements made relating to whether there is a certain preference of employees in serving customers, relating to consumer education background, and reputation of the company. Two questions that represent the second factor are appropriate given the name preferences employees. Factor 7 Courtesy The seventh factor is composed of two indicators of questions. Indicators of questions that make up the seven factors include respect for employees delivered to customers. Indicators of statements that make up these seven factors include the reluctance of employees to serve customers are demanding something that does not make sense, the desire of employees to serve customers who polite. Basically, the front-line employees the company is trained individuals who are able to control their emotions in order to face different types of consumers. Front-line employees must be able to show respect to customers. Philip Kotler in his various texts was written that customers should be treated like a king. Therefore, the front-line employees the company must be able to show respect to employees. The seventh factor is a new factor that is found in a manuscript researcher of this study. The seventh factor is also relevant to the results of interviews and focus group discussions conducted by the author in the complete repertoire of the findings of this study. Factor 8 feeling proud and honored The eighth factor is also formed by two indicators of questions, which include a feeling of pride to work in public institutions. Sense of pride shown by the strong support given to family members if they want to work in the same agency or working in Public Sector Service Company. The eighth factor also seems appropriate given the name of feeling proud and honored.

5. STRUCTURAL EQUATION MODELING There are two steps that need to be done in testing