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Analysis of Employee Performance Affected by Organization Culture and Leadership With Job Satisfaction As Mediation
Analysis of Employee Performance Affected by Organization Culture and Leadership With Job Satisfaction As Mediation
Abstract
This article investigates the impact of Organizational Culture (X1), Leadership (X2), and
Job Satisfaction (Y2) variables on employee performance (Y1) in service companies. The
measurement instrument was based on the Likert scale, and a random sample of 30
participants was selected to ensure validity and reliability. For statistical analysis, we used a
sample of 80 respondents and applied multiple linear regression with SPSS-25 to test the
hypothesis of the simultaneous and partial effects of the variables. The Roscoe method was used
to determine the sample size. The study's findings indicate that organizational culture has a
positive relationship with job satisfaction, leadership has a positive impact on job satisfaction
and employee performance, organizational culture does not directly affect employee
performance, and job satisfaction has a positive effect on employee performance. Additionally,
the study reveals that organizational culture indirectly impacts employee performance
through job satisfaction, and leadership has no indirect effect on employee performance
through job satisfaction.
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1. INTRODUCTION
The quality of human resources determines the achievement of an organization
where human resources have the role of planning, implementing, and controlling the
organization. Bukit (2017) Human resources are potential human own to achieve the role of
humans as social beings who can manage and develop their personalities. The human
resource department has control to improve effectiveness and performance as well as the
organization. An organization is a place for a group of people who carry out activities to
achieve common goals well. Organizational culture is the central assumption system to
complement each other's beliefs and behaviours to develop the organization in selecting
plans, excellence, achievement, innovation, togetherness, trust, and organizational integrity,
which makes organizational culture a benchmark in behaving the same in solving problems
that occur internally and externally in an organization (Tuala, 2020). Campbell (2010) states
that job satisfaction is a behaviour that underlies particular attitudes toward work values
that adapt to individual social relations. Workers are forced to work efficiently and
effectively in the current global era. The amount of competition in the industry makes
competitiveness between each organization in maintaining the continuity of an organization
in every industrial and service sector. Insufficient control of organizational culture within
the organization, where the organization must have members who play an essential role in
running an organization. A lack of reasonable control of the organizational culture will
undoubtedly hurt the organizational structure. Therefore, organizational goals require
employees who meet the organization's standard requirements and can carry out activities
that have become organizational culture in an organization. The ability of employees can be
seen from the results of work, good work is optimal and efficient performance, employee
performance is something that really needs to be considered which makes employees an
important capital for the organization in achieving goals. Therefore, the level of success of
employees in carrying out organizational activities in a certain period is also known as
employee performance. Chairunnisah (Chairunnisah, 2021) said the factors that need to be
considered in employee performance are quality, quantity, job knowledge, work planning,
responsibility, discipline and initiative. So that employees have good characteristics seen
from realistic goals that can realize plans that have been programmed, dare to take risks,
take advantage of all organizational activities that have been carried out. Employee
performance with job satisfaction has a very close relationship, meaning that every work
result of a member of the organization carries out its activities in order to achieve good
results for the organization with joy.
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Chaniago (Chaniago, 2017) Organizations run well if leaders have good character in
their fields, and each leader must have different skills, for example, technical, human, and
conceptual skills. And those who are led are groups of people included in the organization as
members ready to carry out orders and tasks agreed upon to achieve organizational goals. A
leader can influence other members to carry out tasks effectively and efficiently according
to organizational goals. Leadership is one of the activities of the various ways that are used
to control organization members to achieve organizational goals. This company is a third
party authorized by the Bank to collect debts. Based on the interviews conducted with
employees, the authors found that leaders practice leadership within the company as
transformational leadership, where leaders set a good example for employees and listen,
give advice, and even advise employees. PT Mora Anugerah Semesta has a commitment or
organizational culture that is still not good because some employees come to work late, lack
work discipline, and have high absenteeism. There are still many members who have not
reached their monthly billing target. PT Mora Anugerah Semesta has an organizational
culture of morning briefings, monthly work meetings, and annual gatherings. In terms of
organizational culture PT Mora Anugerah Semesta still occurs when several employees have
or experience conflicts among members. The absence of concern and distrust between co-
workers results in the core values of organizational togetherness not being seen and creating
a sense of suspicion towards others. From what we have discussed, we present this article
to reveal the influence of organizational culture and leadership on job satisfaction and its
subsequent effects on performance in this company.
2. LITERATURE REVIEW
2.1 Organizational Culture
Organizational culture, an activity that becomes a benchmark in an organization
where groups of people interact, has a culture that differentiates the organization from other
organizations. Edison (Edison Musa Kayoi, 2021) Organizational culture as beliefs, values,
and methods used to effectively deal with the experience to develop throughout the
organization's history shows in the regulation of each organization member. Organizational
culture is a dominant tool to guide the mental interpretation of corporate actions. Robbins
(2013) states that organizational culture is the interaction of each orthodox values to
influence organizational members in every environment. There are seven dimensions of
organizational culture: innovation and assertiveness in taking risks, working in detail,
working well according to standards, working together well, aggressiveness, and stability.
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As previous research says, Organizational culture is essentially the set of shared values,
beliefs, attitudes, behaviours, and practices typical of an organization. It reflects the
organization's identity, character, and operating style and shapes how its employees interact
with each other and others inside and outside the organization. A positive and well-defined
culture can lead to higher employee satisfaction, better performance, and a more successful
organization (Aswad & Pagalun, 2021; Purnawati et al., 2021; Sasongko et al., 2021;
Wardhana, 2021). Then the researcher makes the second hypothesis as follows:
H1: Organizational culture affects Job Satisfaction.
H3: Organizational culture affects Employee Performance
H6: Organizational culture affects Employee Performance through Job satisfaction
2.2 Leadership
Robbins(Robbins, 2003) Leadership is the nature of a person to influence members
of his organization to achieve goals. The basis of controlling is formal, such as a leader given
a position in the organization. Tewal (2017) states that leadership is a development in which
a leader becomes the primary leadership role which guides the position as a leader guides
and influences. It controls organizational members under supervision to carry out corporate
activities in achieving goals. Indicators of leadership: loyalty, education, advice, and
discipline (Rivai et al., 2013). As previous research says, leadership refers to the ability to
guide, inspire, and influence others to achieve a common goal or vision(Aswad & Pagalun,
2021; Damayanti & Ismiyati, 2020; Monalis & Rumawas, 2020; Sasongko et al., 2021;
Swastiani, 2020)so the authors propose the first hypothesis as follows:
H2: Leadership influences Job Satisfaction.
H4: Leadership influences Employee Performance
H7: Leadership influences Employee Performance Toward Job Satisfaction
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their work(Aswad & Pagalun, 2021; Purnawati et al., 2021; Sasongko et al., 2021; Damayanti
& Ismiyati, 2020). H5: Job Satisfaction positively affects Employee Performance.
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3. RESEARCH METHODS
3.1 Population and sample
It is important to note that the population in research refers to the entire group of
individuals or objects the study focuses on, while the sample refers to a smaller subset of the
people chosen to represent the larger group. In this case, the population of the study is the
215 employees working at Pt Mora Anugerah Semesta. The researchers have chosen to use
probability sampling, meaning that each population member has an equal chance of being
selected for the study. They have also used the Roscoe technique to determine the sample
size, which suggests that the minimum sample size should be at least 20 times the number
of variables. Based on this, they selected a sample of 80 respondents to participate in the
study
.
3.2 Research Instruments
This study uses a Likert scale with validity and reliability testing procedures with four
instruments, namely the instruments of Leadership, Organizational Culture, Job Satisfaction,
and Employee Performance.
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According to the data processing results, the model (H 1) is feasible because the
calculated value is significant at 0.000<0.05. It appears that the researchers in this study
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have assumed that there is a linear relationship between Job Satisfaction (Y 1) and its
predictors, Organizational Culture (X1) and Leadership (X2). A linear relationship suggests
that as X1 and X2 increase, Y1 will also increase or decrease linearly.
Furthermore, the researchers have also developed a regression model to describe the
relationship between Employee Performance (Y2) and its predictors, Organizational Culture
(X1), Leadership (X2), and Job Satisfaction (Y1). A regression model is a statistical tool used
to predict the value of a dependent variable (in this case, Y 2) based on one or more
independent variables (in this case, X1, X2, and Y1).
Based on the statement, the researchers have found that the regression model is
feasible, which suggests that the model is statistically significant and provides a good fit for
the data. It implies that the combination of the three predictors (X1, X2, and Y1) can effectively
explain or predict changes in Y2. However, it is essential to note that the statement provides
limited information and context, so it isn't easy to assess the validity and reliability of the
results without more details, as shown in table 5, sub-structure two:
The data analysis results suggest that the regression model for Employee
Performance (Y2) is statistically significant, as the calculated value is significant at
0.000<0.05. It indicates that there is evidence of a relationship between Employee
Performance and its predictors, which are Organizational Culture (X 1), Leadership (X2), and
Job Satisfaction (Y1).
Additionally, the statement suggests that the results of the regression analysis
indicate that Job Satisfaction (Y1) is influenced by both the Quality of Organizational Culture
(X1) and Leadership (X2). It suggests that an improvement in Organizational Culture and
Leadership can lead to higher levels of Job Satisfaction, leading to better Employee
Performance.
However, it is essential to remember that correlation does not necessarily imply
causation. While the regression model may suggest a relationship between the predictors
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Table 6 shows that the value of R2 is .539. This value indicates the combined influence
of Organizational Culture (X1) and Leadership (X2) on Job Satisfaction (Y1). In other words,
both Organizational Culture and Leadership have an impact on Job Satisfaction, and together
they account for 53.9% of the variation in Job Satisfaction, Coefficient of Determination :
KD = r2x100%
= .539 x 100%
=53.9 %
The number 53.9 represents the degree to which Organizational Culture (X1) and Leadership
(X2) simultaneously influence Job Satisfaction (Y1). Specifically, these two variables explain
53.9% of the variation in Job Satisfaction. The remaining 46.1% (100% - 53.9%) is attributed
to other factors not examined in the study. The regression analysis of Employee
Performance(Y2) that includes Organizational Culture(X1), Leadership(X2), and Job
Satisfaction(Y1) as predictors is a multiple regression analysis. The regression coefficients
can be interpreted as the change in the dependent variable Employee Performance(Y2)
associated with a one-unit change in the predictor variable while holding the other variables
constant. The standard errors measure the estimated coefficients' precision, while the t-
statistics test the hypothesis that the actual regression coefficient equals zero. The p-values
associated with the t-statistics can be used to determine whether the predictor variables are
statistically significant in predicting Employee Performance. If the regression coefficients are
statistically significant, this suggests evidence of a relationship between the predictor
variables and Employee Performance. Additionally, the validity and reliability of the results
depend on a variety of factors, including the sample size, the statistical methods used, and
the quality of the data collected shown in table 7 below:
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Table 7 shows that the value of R2 is .573, indicating the combined influence of
Organizational Culture (X1), Leadership (X2), and Job Satisfaction (Y1) on Employee
Performance (Y2). Specifically, these three variables explain 57.3% of the variation in
Employee Performance. The remaining variation in Employee Performance may be
attributed to other factors that were not examined in the analysis, Coefficient of
Determination :
KD = r2x100%
= .573 x 100%
= 57.3 %
The number 57.3 indicates that the combined influence of Organizational Culture
(X1), Leadership (X2), and Job Satisfaction (Y1) on Employee Performance (Y2) is 57.3%.
These three variables explain more than half of the variation in Employee Performance. The
remaining 42.7% (100% - 57.3%) of the variation may be attributed to other factors not
examined in the analysis.
The t-test can partially identify the influence of the independent variables
(Organizational Culture and Leadership) on the dependent (Job Satisfaction) variable. In
other words, using the t-test, we can examine the statistical significance of the relationship
between each independent variable and the dependent variable separately. It can provide
insights into how each independent variable contributes to the variance in the dependent
variable. However, it's important to note that the t-test is not the only method that can be
used to analyze the influence of independent variables on a dependent variable, and it may
not capture the full extent of their relationship, which can be seen in the following table 8
sub-structure one:
Table 8. A partial test of sub-structure one
Model t Sig.
1 (Constant) -.327 .74
5
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The t-test can partially identify the effect of the independent variables
(Organizational Culture, Leadership, and Job Satisfaction) on the dependent variable
(Employee Performance). We can use the t-test to assess the statistical significance of the
relationship between each independent and dependent variable separately. By doing so, we
can gain insights into how each independent variable contributes to the variation in the
dependent variable. However, it's important to note that the t-test is not the only method
that can be used to analyze the effect of independent variables on a dependent variable, and
it may not capture the full extent of their relationship, which can be seen in the following
table 8 sub structure two:
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et al., 2020; Virgana & Kasyadi, 2020) Every member of the organization wants a positive
outcome from high job satisfaction. Job satisfaction following employee expectations is one
that the organization does the best for employees to improve the quality of work.
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influenced by various factors. For example, some employees may prefer to keep their work,
and personal lives separate or may have other commitments limiting their ability to socialize
outside work. Additionally, the impact of organizational culture on socialization may vary
depending on the specific culture and each employee's needs and preferences.
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performance. In such cases, employees may struggle to meet their job requirements or
perform tasks to the best of their ability, affecting their overall job satisfaction and well-
being. Therefore, organizations must ensure that their employees are satisfied with their
jobs. It can involve providing a positive work environment, opportunities for professional
development, fair compensation and benefits, and other factors contributing to job
satisfaction. By doing so, organizations can help promote high levels of employee
performance, leading to increased profits and success.
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also has an immediate effect on job satisfaction (Y1), but organizational culture (X1) does not
affect employee performance (Y2). On the other hand, leadership (X2) has a direct impact on
employee performance (Y2), and job satisfaction (Y1) also has an immediate effect on
employee performance (Y2). The study also found that the indirect effect of organizational
culture (X1) on employee performance (Y2) through job satisfaction (Y1) has a positive
impact. In contrast, the indirect effect of leadership (X2) on employee performance (Y2)
through job satisfaction (Y1) has no effect. The findings suggest that leadership (X2) can
directly impact employee performance (Y2) without the need to go through job satisfaction
(Y1). Improving a better organizational culture can also increase job satisfaction and
employee performance. From the results, organizational culture does not affect employee
performance due to a lack of two-way communication between members, so employees and
superiors do not grow organizational culture. Therefore leaders should pay more attention
to better communicating with their subordinates to improve a more effective and efficient
work cycle so that the organizational culture implemented by PT Mora Anugerah Semesta is
even better. For further research, this research can be used in other companies or add and
modify the variables that researchers use and expand the object or number of samples so
that they are not limited to PT Mora Anugerah Semesta.
There are research limitations in conducting research:
1. The results of this study cannot be used for other phenomena outside of the case study
object being studied. It is because job satisfaction, employee performance, and
organizational benchmarks differ.
2. In this case, the study of the variables only uses organizational culture, leadership, job
satisfaction, and employee performance.
3. If the performance of employees, organizational culture needs more attention because
it does not yet have the most dominant influence in the work environment.
4. In addition to organizational culture, leadership also needs to be considered. Even
though it is not as big as the influence of organizational culture, leadership also
significantly influences employee job satisfaction at PT Mora Anugerah Semesta
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