The Influence of Organizational
The Influence of Organizational
The Influence of Organizational
ISSN: 2988-0122
PP:1-13
Abstract
This study aims to determine the effect of organizational culture, organizational commitment, and
compensation on employee performance from job satisfaction at PT. Bank Muamalat Indonesia Makassar
Branch. The research describes the relationship and impact between the variables studied, using a
quantitative approach. The sample in this research is 92 respondents. The research data collection method
uses a questionnaire that is distributed offline. The data analysis technique used in this study is the
structural equation model (SEM) which is operated from Smart PLS. The results of the study state that
organizational culture, compensation and organizational commitment have a positive and significant effect
on employee performance. Organizational culture, commitment and organizational compensation also have
a significant and positive effect on job satisfaction. Likewise organizational culture, compensation and
organizational commitment have a positive and significant effect on employee performance from job
satisfaction .
A. INTRODUCTION
The actual difficulties currently stem from the influence of globalization, and since the end
of 2015, Indonesia has faced a new obstacle in the form of the ASEAN Economic Community (AEC)
which is the regional single market. Companies should pay more attention to management-
related challenges , including human resource factors because of globalization (Lamsah, 2018) ;
(Abdurrahim et al., 2017) .
Problems that often occur in an organization are human resources (HR) or poor worker
performance. HR is a major player in business operations. The capacity of the company's human
resources, or its personnel, to carry out the tasks assigned to them, in part determines whether it
will succeed or fail in achieving its goals. As a result, management needs to give careful
consideration to all issues involving human resources to ensure that workers are happy in their
jobs, leading to high levels of productivity that help the company achieve its goals successfully
and effectively (Nasution & Lesmana, 2019 ) .
Companies that are quite closely related to work effectiveness and efficiency, one of which
is business in the banking sector. A bank is a business that receives and issues public money. As
more and more banks sell their services, the condition of the banking industry in Indonesia is
getting worse. Banks will be able to function correctly and thrive in the highly competitive
banking industry by providing the best service to their clients.
Through the results of surveys, in-depth interviews (IDI), and Focus Group Discussions
(FGDs) conducted by OJK, there are a number of strategic problems in Islamic banking that limit
its development. These strategic issues include the lack of distinction of key business models,
continued emphasis on business objectives in company growth, substandard quality of human
B. LITERATURE REVIEW
theory Bases
Organizational Culture
(Robbins, 2015) defines organizational culture, which is a framework of shared meaning
that separates a group from other groups and is embraced by its members. Another definition
from (Hofstede, 2003) , culture is mental programming that separates people into different
groups according to membership. Everyone has a mindset, emotions, and behaviors that they
have acquired throughout their lives. To acquire new cognitive patterns, one must let go of
previously taught patterns. According to (Robbins, 2015) there are 7 characteristics of
organizational culture, namely: Innovation and obtaining risk, attention to detail, focus on results,
emphasize people above things, teamwork, assertiveness, and stability.
compensation
Through (Manthis, 2010) compensation is an important criterion that people use to
decide whether to work for one business over another. From (Hasibuan, 2017) , compensation is
all cash income or commodities that are given to the business, either directly or indirectly, into
rewards for contributions that are given to the business. From (Sedarmayanti, 2010) ,
compensation is all offered to staff as a thank you. (Simamora, 2004) if the high and low
compensation can be measured through indicators: wages/salaries, incentives, benefits and
facilities.
Organizational Commitment
Meyer and Allen (1997) in (Yusuf & Syarif, 2017) write the description of commitment
into a psychological concept that characterizes the bond between members of an organization
and their company and influences an individual's decision to remain a member of the company.
Job Satisfaction
Job satisfaction from (Hasibuan, 2017) is that he has a positive emotional attitude and
enjoys his work. Workplace morale, discipline, as well as productivity all reflect the approach. Job
satisfaction is experienced at work, outside of work, and in a mixture of both. According to Bangun
(2012) in (Pudjiati & Devika, 2019) states if satisfaction at work An employee can measure
whether doing his duties is enjoyable. Then from (Handoko & Rambe, 2018) job satisfaction (job
satisfaction) is the emotional reaction of employees to their jobs, both negative and positive. It is
clear from this point of view that personnel should be placed in positions as per their abilities as
well as training. From Herzberg (2005) in (Puspasari, 2011) there are four factors that affect job
satisfaction, namely psychological satisfaction, social satisfaction, physical satisfaction and
financial satisfaction.
Employee Performance
Performance is a multifaceted construct (Hubbard, 2009) where each party who has an
interest in performance has a tendency to define it in line with their perceptions and goals.
Similarly, performance is always said to be a multidimensional entity (Bates & Holton, 1995)
which not only refers to all companies but many components in it, such as activity units,
procedures, and specific people. The fact that performance is defined in so many different ways
is not surprising given this. Performance is the result of a person's hard work in completing tasks
which is given on the basis of ability, experience, sincerity, and time (Hasibuan, 2017) . Bernardin
and Russell (2003) in (Ladianto, 2019) , employee performance is assessed on the quality of
work, quantity, timeliness, cost-effectiveness and individual relationships.
Results
Hypothesis Testing
The Smart PLS tool was used in the partial least squares (PLS) analysis of this study to
assess the hypothesis. The proposed PLS model is depicted in the figure below
The results of the inner weight value in Figure 2 show if the variable Employee
Performance (Y) is affected by the variables Organizational Culture (X1), Compensation (X2),
Organizational Commitment (X3), and Job Satisfaction (Z) which are all explained in the
structural equation below. Job Satisfaction (Z) variables are influenced by Organizational Culture
(X1), Compensation (X2), and Organizational Commitment (X3 ) variables:
Through the results of the hypothesis test, the results are: (a) Organizational Culture has
a significant impact on employee performance, because the statistical T value is 2.129 which
means greater at 1.96. (b) Organizational Culture has a significant impact on job satisfaction,
because the statistical T value is 3.496 where a greater value will be 1.96. (c) Compensation has
a significant impact on Employee Performance because the statistical T value is 2.064 which
means greater at 1.96. (d) Compensation has a significant impact on Job Satisfaction because the
statistical T value is 2.701 which means greater than 1.96 (e) Organizational Commitment has a
significant impact on Employee Performance, because the statistical T value is 2.095 which means
greater at 1.96. (f) Organizational commitment has a significant impact on job satisfaction,
because the statistical T value is 3.520 which means greater than 1.96. (g) Job Satisfaction has a
significant impact on Employee Performance, because the statistical T value is 3.6 28 which
means greater will be 1.96.
Through the results of hypothesis testing, the results are: (a) Organizational Culture has
a significant impact on employee performance of job satisfaction because the statistical T value
is 2.533 which means greater will be 1.96. (b) Compensation has a significant impact on
Employee Performance from Job Satisfaction because the statistical T value is 2.188 which
means greater will be 1.96. (b) Organizational Commitment has a significant impact on
Employee Performance from Job Satisfaction because the statistical T value is 2.227 which
means greater than 1.96.
Discussion
The Influence of Organizational Culture on Employee Performance
Through the results of the study, the results if the power has a significant impact on
employee performance, because the statistical T value is 2.129 where the meaning is greater at
1.96, which indicates if employee performance can be affected will be more effective. Until the
hypothesis reads "Organizational Culture has a significant effect on the work of employees at PT.
Bank Muamalat Indonesia Makassar Branch", it is said to be proven and accepted as true. The
results of hypothesis testing are proven if the impact has a significant impact on employee
performance through unidirectional or positive impact directions. This result states that the
higher the organizational culture which is the result of work so that the higher the work of the
organization's employees. This is in accordance with (Firmansyah, 2018) where they say that
D. CONCLUSION
Through the results of the resulting analysis, conclusions can be drawn, namely: (1)
Organizational Culture, Compensation and Organizational Commitment have an impact on the
work of PT. Bank Muamalat Indonesia Makassar Branch. The direction of the impact where it
occurs is Positive, which means the higher the Organizational Culture, Compensation and
Organizational Commitment, the higher the Employee Work. (2) Organizational Culture,
Commitment and Organizational Compensation affect the Job Satisfaction of PT. Bank Muamalat
Indonesia Makassar Branch. The direction of positive impact, where the higher the organizational
culture, compensation and organizational commitment, the higher the employee job satisfaction.
(3) Organizational Culture, Commitment and Organizational Compensation have an impact on
Employee Performance from Satisfaction at PT. Bank Muamalat Indonesia Makassar Branch. The
direction of the impact is Positive, which means the higher the Organizational Culture,
Commitment and Organizational Compensation, the higher the Employee Performance through
Job Satisfaction.
E. SUGGESTIONS
Researchers make several recommendations for employee performance improvement and
additional studies based on the findings of the analysis and discussion conducted.
Recommendations are listed below: (1) Expected employees of PT. Bank Muamalat Indonesia
Makassar Branch to prioritize sharia principles as the identity of Bank Muamalat so as to create
a strong organization, (2) pay attention to providing incentives to create employee satisfaction
so that it has an impact on employee performance, (3) provide satisfactory income so that
employees find it difficult to produce work on better income resulting in high organizational
commitment has an impact on high performance, (4) pay more to provide good in order to create
attention employee job satisfaction, (5) pay more attention to the effectiveness of free time so
that it is useful for work, (6) it is it is expected that the next research so that the development of
this research should include other variants (eg leadership, work stress, motivation, discipline,
work environment, and others) that also affect job satisfaction and employee performance .
Bibliography
Abdurrahim, A., Anisah, HU, & Dewi, MS (2017). The Effect of Job Satisfaction and Organizational
Commitment on Employee Turnover Intention Study at PT. Bnk People's Credit Mitratama
Arthabuana. At-Tadbir: Scientific Journal of Management , 1 (2), 1–11.
https://doi.org/10.31602/atd.v1i2.910
Adolphina. (2014). Linkage Analysis Between Job Satisfaction, And Organizational Commitment
With Individual Performance. Journal of Economics, Management, Business and Accounting
Research , 2 (3), 864–871.
Agustin, DR (2021). THE EFFECT OF ORGANIZATIONAL COMMITMENT AND ORGANIZATIONAL
CULTURE ON EMPLOYEE PERFORMANCE AT ABDULRACHMAN SALEH AIRPORT MALANG
.
Bodroastuti, T., & Ruliaji, A. (2016). The Effect of Organizational Commitment and Job Satisfaction
on Organizational Citizenship Behavior (Ocb) and Their Impact on Employee Performance.
Journal of Economic & Business Dynamics , 13 (1), 15–31.