International Journal of Multidisciplinary Research and Publications ISSN (Online): 2581-6187 102 Rike Nursafitri, Widayanto, and Reni Shinta Dewi, “Influence of Work Discipline and Competence on Performance Through Organizational Commitment as an Intervening Variable (Study on Production & Project Function PT Pertamina Hulu East Kalimantan) ,” International Journal of Multidisciplinary Research and Publications (IJMRAP), Volume 7, Issue 3, pp. 102-109, 2024. Influence of Work Discipline and Competence on Performance Through Organizational Commitment as an Intervening Variable (Study on Production & Project Function PT Pertamina Hulu East Kalimantan) Rike Nursafitri 1 , Widayanto 2 , Reni Shinta Dewi 3 1, 2, 3 Department of Business Administration, Diponegoro University, Semarang, Indonesia-1269 Email address: rikenrsafitri01@gmail.com Abstract—Organizational behavior is a field of study that studies individual and group behavior that influences performance. Requires work discipline to get good performance so that company sustainability will be achieved. The competencies possessed by workers must also be in accordance with the job description so that wok results are maximized. Loyalty to the organization will encourage maximum company performance. The research method used is quantitative with explanatory research type. Data processing uses SmartPLS 4 software. The reflective measurement model uses outer loading, AVE, HTMT, cross loading, cronbach’s alpha, and composite reliability. Evaluation of the structural model using r- square, f-square, hypothesis testing with bootstrapping, and the VAF method for mediation effects. The research result support organizational behavior in worker performance which is influenced by work discipline, competence and organizational commitment. Organizational commitment plays a full mediating role between work discipline variables and performance. Suggestions given to the Production & Project function of PT Pertamina Hulu East Kalimantan are to improve fairness with simple things to make workers feel valued. Keywords— Work discipline, competence, organizational commitment, employee performance. I. INTRODUCTION The company seeks employees who are both knowledgeable and reliable. A strong desire to achieve maximum results is paramount. Human capital is a fundamental asset that drives and executes all activities toward realizing the company's vision and mission. Employees play a pivotal role, from planning to execution, in achieving company objectives. Employee performance is the outcome of the work executed by individuals or teams who contribute to the growth and advancement of the company (Robbins, 2017) [1]. As human resources, employees play a vital role in activities aligned with the company's systems, processes, and objectives. Without effective performance, the company's survival is at risk. A company can thrive when it effectively manages human resource challenges or obstacles that hinder workplace operations. One of PT Pertamina Hulu East Kalimantan's strategies to enhance employee performance is to increase task completion within the Production & Project function. This objective is driven by a decline in task completion rates within this function from 2021 to 2022. Achieving this target necessitates active and committed employees. A lack of strong commitment can be attributed to internal factors that hinder employee performance optimization. TABLE 1: Presents the target and actual realization of task completion for PT Pertamina Hulu East Kalimantan's Production & Project function: Year Target % Realization% 2021 100 79.5 2022 100 70.7 Table 1 indicates that task completion rates decreased from 79.50 in 2021 to 70.70 in 2022, reflecting a decline in employee performance within the Production & Project function. This performance decline has impacted the company's increasing workload and responsibilities in meeting targets from both superiors and subordinates. The Production & Project function comprises several work units, each with specific task completion targets aligned with individual employee positions. The Production unit focuses on oil and natural gas production and maintaining the reliability of production equipment, such as drilling equipment and refineries. The Project unit executes projects supporting oil and gas production, including drilling projects, procurement projects, and installation projects for new production equipment. Based on these tasks, each position has unique responsibilities, and task completion is evaluated using KPIs. Organizational tasks are accomplished through individual, team and project work. Therefore, employee performance contributes significantly to organizational outcomes. The number of tasks and responsibilities aligns with employee positions and the workload undertaken during a working year. However, obstacles can hinder task completion, leading to subpar performance. Improved performance results in greater financial and psychological rewards. Several factors influence the decline in employee performance, including work discipline, competence, and organizational commitment.