Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2021 Vol: 20 Issue: 1

Literacy of Organizational Cultures Effects on Work Performance

Imanuddin Hasbi, Telkom University

Mahir Pradana, Telkom University

Afritha Laura Priscilla Saragih, Telkom University

Abstract

Human resources are essential because they are the driving force of the company in achieving company goals. Company goals can be achieved if employee performance is good. In this study, employee performance can be seen from the factors of organizational culture, motivation, and company leadership. The research method used in this research is descriptive research with a quantitative approach. Respondents in this study were employees; with the number of respondents in this study were 18 people. The data analysis technique used simple linear regression analysis with the help of IBM SPSS Statistic 25 software. Based on the research results, it is found that organizational culture, motivation, and leadership can significantly influence the performance.

Keywords

Literacy, Organizational Culture, Business Administration, Employee Performance.

Introduction

Human resources are a crucial element for the company because they will have difficulty running the company (Fakhri et al., 2020 & 2021). The development of globalization affects every company, especially in the field of human resources Pradana et al. (2020). Companies want every employee to have a good performance so that the company's goals can be achieved because the success of a company can be assessed from the performance of the employees at the company (Robbins & Judge, 2015). This fact is usually associated with each company's organizational culture, how employees can be motivated to work well, and the leadership of a company leader (Saragih et al., 2018).

The object of our research, Yakes Telkom, is the only Telkom subsidiary in the health sector that manages employees, retirees, and their families and has a work culture that guides them in providing services to all stakeholders. "The Telkom Way" is the corporate culture or corporate values that Telkom has held since June 10, 2013, stipulated in the Leadership Architecture and Corporate Culture. Furthermore, implementing the Corporate Culture within the Telkom Group is stipulated in the Telkom Group Corporate Culture. This corporate culture applies to all subsidiaries, including Yakes Telkom. The corporate culture's determination above refers to the Telkom Group management concept based on the 8S elements, namely Spirituality, Style, Shared Values, Strategy, Staff, Skill, System, and Structure.

To achieve the goals of a company or organization, there is a critical factor, namely motivation (Nurviza et al., 2019). According to Brury (2016), work motivation is the behavior and factors that influence employees to behave concerning their work. Because employees are vital in a company, employees are needed to pay more attention to their tasks to achieve company goals (Campbell & Samiec, 2005). With high work motivation, employees will be more enthusiastic and active in carrying out their work. Conversely, if employees have low work motivation, employees easily give up, are not enthusiastic, and have difficulty completing their tasks (Robbins & Judge, 2015).

Good work motivation can be triggered by an individual's self, environment, and people. A leader of a company can also influence good work motivation. According to Pradana et al. (2020), leadership is a role and a process to influence others. The success of a company cannot be separated from the quality of its leader. Leaders who can utilize existing resources, direct their subordinates' activities, anticipate all changes that occur suddenly and correct any weaknesses, and bring the organization to the agreed goals are leaders with excellent quality (Edison et al., 2017).

Yakes Telkom's performance assessment uses the SKI (Individual Work Goals) and NKI (Individual Work Value) every year (Haluk et al., 2016). Individual Work Goals (SKI) is a statement regarding the work goals to be achieved by an employee within one year that is realistic, measurable, and relevant by referring to the BPK that has been set, while the Individual Work Value (NKI) is made based on the implementation of work objectives and the work standards set (Marjaya & Pasaribu, 2019). The criteria in SKI and NKI are different for each individual because they relate to the employees' fields.

Literature Review

According to Pradana et al. (2020), a well-managed human capital is the process of planning, organizing, placing, leadership, and controlling individuals, groups, and all parties related to the company to achieve predetermined company goals. According to Utami et al. (2019), human resource management is a series of organizational activities directed at attracting, developing and maintaining an effective workforce. It can be interpreted as empowerment, development, assessment, remuneration and management of an individual member of an organization or working group (Silvianita & Tan, 2017). HRM can also involve the design and implementation of planning systems, personnel arrangement, employee development, career management, job evaluation of employee compensation and seamless labor relations (Widodo, 2017).

Organizational Culture

According to Fakhri et al. (2020, 2021), culture is a habit that has lasted a long time and is difficult to change. Meanwhile, an organization is a cooperation between two or more people to achieve common goals. Therefore, the notion of Organizational Culture is the values possessed by an organization that show the characteristics, attitudes, and daily behavior both consciously and unconsciously, shown by all organization members, and become an identity that distinguishes it from other organizations (Utari et al., 2018). Organizational culture is a shared meaning system adopted by members that differentiate an organization from other organizations. Saragih et al. (2018) states that organizational culture is the way people behave in organizations and this is a set of norms consisting of beliefs, attitudes, core values, and shared behavior patterns of the organization.

Research Hypotheses

H1 Organizational Culture has a positive influence on the Employee Performance of the Telkom Medan Employees Health Foundation.

H2 Motivation has a positive influence on the Employee Performance of Telkom Medan Employees Health Foundation.

H3 Leadership has a positive influence on the Employee Performance of Telkom Medan Employees Health Foundation.

H4 There is an influence of Organizational Culture, Motivation, and Leadership on Employee Performance of Telkom Medan Employees Health Foundation.

Research Methodology

This type of research used to conduct this research is descriptive research with a quantitative approach. According to Pradana et al. (2020), descriptive research is research based on population data, or total sampling, or census by not testing statistical hypotheses from a statistical point of view.

Quantitative research is the activity of collecting, processing, analyzing, and presenting data based on the amount or amount that is done objectively to solve a problem or test a hypothesis to develop general principles (Sugiyono, 2017).

Results and Discussion

Based on the research results, it can be concluded that the total average value of organizational culture is 90% and is categorized as very good, the total value of motivation is 89% and categorized as very good, the total value of leadership is 96%% and categorized as very good, the total value of work performance is 94%.

a. The organizational culture variable (X1) has a t value greater than the t table value because the t value (2.188) is more than the t table value which is 1.055 and the significance level is 0.046 <0.05. So it can be concluded that partially significant effect of organizational culture variables (X1) on employee performance (Y) (Table 1).

Table 1 T-Test Result
Model Coefficients a
Unstandardized
Beta
Coefficients
Std. Error
Standardized Coefficients Beta t Sig.
(Constant) 5.471 5.184   1.055 0.309
X1 0.258 0.118 0.410 2.188 0.046
X2 0.523 0.212 0.401 2.465 0.027
X3 0.193 0.148 0.215 1.307 0.212

b. The motivation variable (X2) has a t value greater than the t table value because the t value (2.465) is more than the t table value, namely 1.055 and a significance level of 0.027 <0.05. So it can be concluded that partially significant effect of the motivation variable (X2) on employee performance (Y).

c. The leadership variable (X3) has a t value greater than the t table value because the t value (1.307) is more than the t table value, namely 1.055 and the significance level is 0.212> 0.05. So it can be concluded that partially there is no significant effect of the leadership variable (X3) on employee performance (Y).

Based on the Table 2 above, it is known that the R value is 0.885 and R-square (R2) is 0.783, if calculated by the formula for the coefficient of determination as follows:

Table 2 Model Summaryb
Model R R Square Adjusted R Square Std. Error of the Estimate
1 0.885a 0.783 0.737 1.68767

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This shows that the influence of the independent variables, namely organizational culture, motivation and leadership on the dependent variable, namely employee performance is 78.3 %% while the remaining 21.7% is influenced by other factors.

Simple Regression Test

Based on simple linear regression analysis, the following is the regression equation from the results of the analysis.

image

Based on the regression equation, it can be described as follows:

a. Constant (a) =2.415 this shows a constant value, namely if the variable organizational culture (X1), motivation (X2), leadership (X3), =1, then the Employee Performance process at Yakes Telkom Medan is still 2.415.

b. The coefficient of X1 (b1) =0.258. This shows that the organizational culture variable has a positive effect on the Employee Performance process at Yakes Telkom Medan. If the training variable is increased by one unit and the other variables are constant, the purchasing decision process will increase by 0.258.

c. The coefficient of X2 (b2) =0.523. This shows that the motivation variable positively towards the Employee Performance process at Yakes Telkom Medan is still at 0.523.

d. The coefficient of X3 (b3) =0.193. This shows that the leadership variable positively on the Employee Performance process at Yakes Telkom Medan is still 0.193.

Conclusions

Based on the research results, the following conclusions can be drawn:

1) Based on the responses from respondents to the answers given about organizational culture is 90%, these results are included in the very good category.

2) Based on the responses from respondents to the answers given about motivation is 89%, these results are included in the very good category.

3) Based on the responses from respondents to the answers given about leadership is 96%, these results are included in the very good category.

4) There is an influence between organizational culture, motivation, and leadership on work performance by 78.3%, this result is in the good category.

Based on the results of the research and data processing that has been done, the researchers propose the following suggestions:

Advice for Companies

a. Yakes Telkom has implemented a good organizational culture as a guideline for work. It is expected that the company can maintain and improve the application of organizational culture which is considered very good by respondents. It is expected that the company can pay attention to dimensions that are lower than other dimensions such as attention to detail, human orientation, team orientation, and aggressiveness in order to achieve better company goals.

b. Based on the research results for the motivation variable, it is expected that the company can pay attention to dimensions that are lower than other dimensions so that employees are more enthusiastic at work.

c. Based on the research results for leadership variables, it is hoped that the company can pay attention to dimensions that are lower than other dimensions such as coaching so that leaders can train their subordinates better so that the agreed-upon company goals can be achieved.

d. Based on the research results for work performance variables, it is hoped that the company can pay attention to dimensions that are lower than other dimensions such as quality so that employees can be more committed to carrying out their duties.

Suggestions for Further Researchers

Based on the research results, the researcher provides suggestions for further researchers as follows.

a. Researchers can then examine other factors that can affect employee performance such as training, work environment, or work discipline. This is intended to obtain varied research results.

b. The next researcher can expand the research by using other research objects and using multiple linear regression analysis.

References

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