The Influence of Organizational Culture on Employee Performance with Organizational Commitment as
an Intervening Variable
Nur Saebah1*, Alit
Merthayasa2
Universitas Cendekia Mitra
Indonesia, Yogyakarta,
Special Region of Yogyakarta, Indonesia1,2
E-mail: [email protected]1*, [email protected]2
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ABSTRACT |
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Organizational Culture; Employee Performance; Organizational Commitment. |
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Organizational
culture encompasses the values, norms, and beliefs shared by organizational
members and can play a crucial role in shaping individual behavior and
performance. In a competitive business environment, a deep understanding of
the relationship between organizational culture, organizational commitment,
and employee performance is key to achieving competitive advantage. This
study examined organizational culture's effect on employee performance with
organizational commitment as a mediating variable. This study uses
quantitative research methods with a survey approach. Research data were
collected using a questionnaire. The data that has been collected is then
statistically analyzed with the help of the SPSS program. The results showed
that organizational culture positively and significantly affects employee
performance through organizational commitment. Therefore, organizations need
to create an organizational culture that supports employee performance. |
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INTRODUCTION
In the organizational world, each
entity has its characteristics that make up what is known as organizational
culture. Organizational culture includes norms, shared values, and perspectives
and behaviors espoused by its members. Organizational culture is the main
pillar that shapes an organization's unique identity and character.
Organizational culture is the main foundation that shapes organizational norms,
values, and behaviors (Saebah &
Merthayasa, 2023; Spicer, 2020). Organizational culture plays a crucial role in
shaping employee attitudes and behavior, which can affect employee performance.
Employee performance includes how individuals in an organization achieve their
goals and responsibilities. Various methods can measure this performance,
including goal achievement, productivity, quality of work, initiative, and
contribution to the team or organization. In organizations, employee
performance is an important indicator to assess the effectiveness and
efficiency of human resources (Saebah et al., 2023;
Silaen et al., 2021).
Uncertainty and continuous change in
the modern business world require organizations to have employees who work
efficiently and attach and are dedicated to the organization's vision and
values, also called organizational commitment. Organizational commitment refers
to the extent to which an individual feels attached, committed, and loyal to
their organization (Bagis et al., 2021;
Pamungkas et al., 2023). This commitment involves an emotional and cognitive
connection between employees and the organization, reflected in the desire to
keep working long-term, actively participate, and contribute maximally to
organizational goals (Fidyah &
Setiawati, 2020; Setrojoyo et al., 2023). Therefore, this research becomes relevant as an
effort to provide a better understanding of the way organizational culture and
organizational commitment interact with each other, as well as their impact on
employee performance.
Previous research by Iskandar and Anggraeni (2018) showed that organizations positively affect
organizational commitment and employee performance. In addition, organizational
commitment positively affects employee performance and mediates the causal
relationship between organizational culture and employee performance. The
results of this study are expected to have implications for the Ciamis Regional Police in improving the performance of its
apparatus. Another study by Budiono (2016) shows a significant influence between organizational
culture and employee performance. Organizational commitment does not have a
significant effect on employee performance. Organizational culture has a
significant effect on organizational commitment. However, organizational
culture on employee performance through organizational commitment as an
intervening variable proved to have no effect.
The research gap makes the study
interested in reviewing the influence of organizational culture on employee
performance with organizational commitment as a mediating variable in a private
company in Bandung. This research guides organizations to understand the
critical role of organizational culture and commitment to improving employee
performance. Organizational management can use these findings to design more
effective management policies and practices, including developing a supportive
organizational culture and strategies to increase employee commitment.
Implementing these practices will optimize employee productivity and
performance, increase job satisfaction, and ultimately achieve organizational
goals. This study aimed to examine organizational culture's influence on
employee performance with organizational commitment as a mediating variable.
METHODS
This study used quantitative
research methods with a survey approach. Quantitative research is a type of
scientific research that collects and analyzes data in numbers or numerical
data to answer research questions and test hypotheses. The quantitative approach
uses statistical methods and measurement techniques to describe and analyze the
relationship between variables (Unaradjan, 2019). The research data were collected using a
questionnaire with a Likert scale. The study population is employees in one of
the private companies in Bandung City. The study sample consisted of 30
employees randomly selected using a random sampling technique. Random sampling
is a method that gives every element in a population an equal chance to be part
of the sample. In this technique, each member of the population has the same
probability of being selected as part of the sample, thus ensuring that the resulting
sample represents the diversity and variation within the population (Sumargo, 2020). The collected data is then analyzed statistically
using the help of the SPSS program. Based on this, the following research
framework was obtained:
Figure 1.
Research Framework
Hipotesis:
H1: Organizational
culture affects employee performance.
H2:
Organizational culture affects organizational commitment.
H3:
Organizational commitment affects employee performance.
H4: Organizational commitment mediates the influence
of corporate culture on employee performance.
RESULTS
Validity Test
A validity test is a method or technique
used to assess the extent to which an instrument or measuring device can
measure what should be measured or measure the construct in question
accurately.
Table
1. Validity Test
Correlations |
|||||
|
Organizational
Culture |
Employee
Performance |
Organizational
Commitment |
Total |
|
Organizational
Culture |
Pearson
Correlation |
1 |
.536** |
.267 |
.831** |
Sig.
(2-tailed) |
|
.002 |
.153 |
<.001 |
|
N |
30 |
30 |
30 |
30 |
|
Employee
Performance |
Pearson
Correlation |
.536** |
1 |
.387* |
.868** |
Sig.
(2-tailed) |
.002 |
|
.035 |
<.001 |
|
N |
30 |
30 |
30 |
30 |
|
Organizational
Commitment |
Pearson
Correlation |
.267 |
.387* |
1 |
.589** |
Sig.
(2-tailed) |
.153 |
.035 |
|
<.001 |
|
N |
30 |
30 |
30 |
30 |
|
Total |
Pearson
Correlation |
.831** |
.868** |
.589** |
1 |
Sig.
(2-tailed) |
<.001 |
<.001 |
<.001 |
|
|
N |
30 |
30 |
30 |
30 |
Based on the data in table 1, it can be
observed that each instrument shows a Pearson correlation coefficient that
surpasses the Table's r value of 0.361 (N=30), and the significance value
(2-tailed) of the correlation for all items is below 0.05. In conclusion, all
statements in the questionnaire are considered statistically valid, which can
be considered valid for use in this study.
Reliability Test
Reliability testing measures the extent to
which a measuring instrument can provide consistent and reliable results when
used repeatedly.
Table
2. Reliability
Test
Reliability
Statistics |
|
Cronbach's
Alpha |
N of
Items |
.654 |
3 |
Based on the reliability analysis results
listed in table 2, a Cronbach Alpha value of 0.654 was obtained. This number
crossed the 0.600 threshold, indicating that the questionnaire showed a high
level of consistency and could reliably be used in future studies.
Uji
Regresi Linear
Linear regression tests understand and
measure the linear relationship between one dependent variable and one or more
independent variables. This test helps determine the extent to which changes in
the independent variable can predict changes in the dependent variable.
Table
3. Linear
Regression Test
Coefficient |
||||||
Model |
Unstandardized
Coefficients |
Standardized
Coefficients |
t |
Say. |
||
B |
Std.
Error |
Beta |
||||
1 |
(Constant) |
2.884 |
4.578 |
|
.630 |
.534 |
Organizational
Culture |
.550 |
.164 |
.536 |
3.359 |
.002 |
Based on table 3, regression analysis
shows that organizational culture has a positive and significant effect on
employee performance with a significance value of 0.002, which is smaller than
0.05.
Test
Mediation
The mediation test assesses whether a
third variable can explain or mediate the relationship between two variables.
This helps understand the pathways or mechanisms through which one variable
affects another.
Table
4. Test Mediation
Model Summary |
||||
Model |
Coeff |
herself |
t |
p |
constant |
2.7665 |
1.6272 |
1.4211 |
.0733 |
X |
.4783 |
.0603 |
4.3740 |
.0000 |
M |
.5028 |
.1535 |
3.0313 |
.0004 |
Based on the results in table 4, a p-value
of < 0.05 mediation test was obtained to conclude that organizational
commitment mediates the influence of corporate culture on employee performance.
Coefficient
of Determination Test
The Coefficient of Determination, or
R-squared test, evaluates how well a linear regression model can account for
variations in the dependent variable. The coefficient of determination ranges
between 0 and 1, and the closer to 1, the better the model can explain data
variations.
Table 5. Coefficient of Determination Test
Model Summary |
||||
Model |
R |
R Square |
Adjusted
R Square |
Std.
Error of the Estimate |
1 |
.536a |
.287 |
.262 |
1.52507 |
Table 5 shows
that the coefficient of determination (R Square) has a value of 0.287, which is
equivalent to 28.7%. This indicates that organizational culture has a positive
and significant effect through organizational commitment of 28.7% to employee
performance. The remaining 71.3% were influenced by other factors that were not
the focus of the study.
Discussion
Organizational culture affects employee performance
The results
showed that organizational culture affects employee performance. Organizational
culture has a significant impact on employee performance. Organizational
culture includes the norms, values, and attitudes held by the organization's
members. Employees tend to feel motivated, committed and engaged in a work
environment dominated by a positive culture. Conversely, a negative
organizational culture can create dissatisfaction, lack of motivation, and
instability in the work team. An organizational culture that supports employee
performance creates a work environment conducive to individual growth and
development. When employees feel aligned with the organization's values, they
are likelier to make maximum contributions, collaborate effectively, and
achieve common goals. Therefore, understanding and instilling a positive
organizational culture can effectively improve employee performance and
productivity.
The results of
this study align with previous research by Wardani et
al. (2016), showing that
simultaneously, it is known that the Familiarity Principle and the Integrity
Principle have a significant effect on Employee Performance. Sig value. The F
obtained is 0.000. The study's results partially showed that the Familiarity
Principle significantly affected Employee Performance with a sig.t value of
3,235. The study's results partially revealed that the integrity principle
significantly affected employee performance, with a significance value of
4,989. Based on the study results, the Principle of Integrity has a dominant
influence on employee performance. Another study by Arianty
(2014) shows a
significant influence between organizational culture and employee performance.
Similar research by Rosvita et al (2017) shows that
partially organizational culture variables significantly affect employee
performance variables. Organizational culture variables affect employee
performance with a termination coefficient value of 0.827.
Organizational culture affects organizational commitment
The data in Table 1 reveals
a positive and statistically significant correlation (0.267) between
organizational culture and organizational commitment. This suggests that there
is empirical evidence supporting H1 – the assertion that organizational culture
indeed impacts organizational commitment. Employees tend to feel more committed
when they perceive a positive organizational culture. Shared values, norms, and
a supportive work environment contribute to a sense of belonging and
attachment, fostering organizational commitment. Organizations seeking to
enhance organizational commitment should focus on cultivating a positive and
inclusive organizational culture. Strategies that promote transparency,
communication, and values alignment may contribute to stronger organizational
commitment among employees.
Organizational commitment affects employee performance
The results in Table 1
demonstrate a positive and statistically significant correlation (0.536)
between organizational culture and employee performance. This supports H2,
indicating that a positive organizational culture is associated with improved
employee performance. Employees are likely to be more motivated and engaged in
a positive work environment, leading to increased performance. A culture that
supports collaboration, innovation, and employee well-being can positively
influence overall job performance. Organizations aiming to boost employee
performance should prioritize the development of a positive organizational
culture. This involves fostering a work environment that encourages
collaboration, provides growth opportunities, and aligns with employees'
values.
Organizational commitment mediates the
influence of organizational culture on employee performance.
The results from the
mediation analysis in Table 4 confirm that organizational commitment mediates
the influence of organizational culture on employee performance, supporting H4.
This suggests that the positive impact of organizational culture on employee
performance is channeled through the mediating factor of organizational
commitment. When employees are committed to the organization, they are more
likely to exhibit optimal performance. To improve employee performance,
organizations should not only focus on enhancing organizational culture
directly but also on fostering organizational commitment. Strategies aimed at
increasing commitment, such as effective communication, employee recognition,
and supportive leadership, may enhance the overall impact of organizational
culture on performance.
The results
showed that organizational commitment mediates the influence of organizational
culture on employee performance. Organizational commitment is a significant
intermediary between organizational culture and employee performance.
Organizational culture, including values, norms, and attitudes in an
organization, can provide a strong foundation for the formation of employee
commitment to the company (Mulyani et al., 2019; Spicer, 2020). When employees
feel a value alignment between themselves and the organizational culture, they
are more likely to respond with a higher commitment to the organization.
Organizational commitment, whether affective, normative, or continuous, creates
emotional, moral, and instrumental attachments between employees and the
organization. This attachment, in turn, provides additional motivation for
employees to demonstrate optimal performance. Employees with a high level of
commitment tend to be more diligent and productive and have strong intrinsic
motivation to carry out their duties. Thus, organizational commitment is vital
in translating organizational culture into quality employee performance (Silaen et al., 2021; Suwibawa et al., 2018).
This study's
results align with previous research by Anggara et
al. (2022), showing that
the influence of organizational culture on organizational commitment was
positive and significant. The results of the analysis of the influence of
organizational culture on employee performance were found to be positive and
insignificant. The results of the analysis of the role of organizational
culture on employee performance with organizational commitment as an
intervening variable of organizational commitment were found to be positive and
significant. Another study by Korda and Rachmwati (2022) found that
organizational culture influences and improves employee performance. It also
affects organizational commitment and job satisfaction, which mediates culture
to improve employee performance. In addition, employee performance can be
improved by increasing job satisfaction and commitment. Job satisfaction also
increases and influences employee commitment. Similar research by Arumi et al. (2019) shows that the
contribution of organizational culture to organizations, including unique
values, behaviors, and psychology, is needed by organizations. It also includes
the organization's beliefs, experiences, ways of thinking, and expectations.
Every organization must improve employee behavior into Organizational
Citizenship Behavior (OCB). To bring OCB to employees, a well-formed commitment
is required. The result found in this study is that mediators play the greatest
role in influencing organizational culture and OCB.
The study provides robust
support for the hypotheses, indicating a complex interplay between
organizational culture, employee performance, and organizational commitment.
The practical implications suggest that organizations can strategically
leverage and enhance these relationships to create a positive, high-performing
work environment. The findings contribute valuable insights for organizational
leaders seeking to optimize organizational culture and improve employee
outcomes.
CONCLUSION
Organizational culture plays a crucial role in shaping
employee performance through organizational commitment. Human resource
management research and practices show that a strong and positive
organizational culture can positively and significantly impact employee
commitment to the organization. This commitment, in turn, becomes the mediator
that links corporate culture to employee performance. Therefore, every
organization must create and maintain a culture that supports, motivates, and
builds employees' sense of attachment to organizational goals and values. By
creating a work environment that nurtures a positive culture, organizations can
improve employee commitment quality, improving individual and overall
organizational performance.
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Copyright holder: Nur Saebah, Alit Merthayasa (2024) |
First publication
rights: International
Journal of Social Service and Research (IJSSR) |
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