THE EFFECT OF ORGANIZATIONAL CULTURE AND WORK ENVIRONMENT ON EMPLOYEE PERFORMANCE AT PT GALIH ESTETIKA INDONESIA

 

Aina Listiana

Univeritas Swadaya Gunung Jati, Jawa Barat, Indonesia

ainalistiana267@gmail.com

 

KEYWORDS

ABSTRACT

organizational culture, work environment, employee performance.

This study aims to determine the effect of organizational culture and work environment on employee performance at PT. Galih Indonesian Aesthetics. The population of this research is the Production Employees of PT. Galih Indonesian Aesthetics. The technique used in sampling uses a saturated sample, where the total population is used as a sample of 64 respondents. Methods in data collection using multiple linear regression. The results of this study indicate a positive and significant influence between organizational culture and employee performance seen from tcount>ttable, namely 4.613 > 1.99897, the work environment has a positive and significant effect on employee performance seen from tcount>ttable 4.418 > 1.99897. There is a significant influence between organizational culture and work environment on employee performance, as shown by the value of Fcount>Ftable, namely 45.015 > 3.17.

DOI: 10.58860/ijsh.v1i3.17

Corresponding Author: Aina Listiana

E-mail: ainalistiana267@gmail.com

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INTRODUCTION

Human resources are essential in an organization or institution (Amelia et al., 2022). Human resources as a company asset greatly influence the company's success in achieving organizational goals; the success or failure of an organization in achieving goals depends on the success of the organization's human resources in carrying out their duties (Riniwati, 2016). Employee performance results from work or output produced by individuals following the rules and standards that apply to each company (Nelizulfa, 2018). Each employee has different abilities in carrying out their duties to produce output based on quantity and quality (Meithiana, 2017).

PT Galih Estetika Indonesia is an agribusiness company engaged in sweet potato management and procurement of raw materials currently used by the company, namely conducting a contract system with farmers and purchasing directly from the dealer (Nur'azkiya et al., 2017). Not all organizational cultures go well; some problems occur in applying organizational culture at PT. Galih Estetika Indonesia, namely the need for more cooperation between employees, briefings are rarely held between employees for future company goals or briefings evaluating previous work results. Meanwhile, there are work environment problems within the company that do not provide comfort for employees, such as noise from machines in the production room because the machines are old. The factory's location is close to the main road so that the sounds of vehicles can be heard clearly (not soundproof). These things can interfere with employee concentration while working and reduce employee performance.

The problems and conditions described above are felt to affect the performance of employees of PT. Galih Indonesian Aesthetics. Based on the background and phenomena obtained from the company, this study aimed to identify the influence of organizational culture and work environment on employee performance at PT Galih Estetika Indonesia.

 

METHODS

This research uses quantitative methods because this research wants to know the significance of the influence of organizational culture and work environment on the performance of employees of PT. Galih Indonesian Aesthetics. In addition, this associative research aims to see whether two or more variables have a correlation (Darna & Herlina, 2018). So that there are two independent variables in this study, namely Organizational Culture (X1), Work Environment (X2), and one dependent variable, namely Employee Performance (Y).

The dimensions used in organizational culture variables according to (Sinambela & Lestari, 2022), the dimensions used in work environment variables used (Sedarmayanti & Rahadian, 2018), while the dimensions of employee performance according to Mangkunegara (2021: 12). The population in this study were all production employees of PT. Galih Estetika Indonesia, totaling 64 employees. The sampling technique used in this study was a saturated sampling technique in which all members of the population were sampled so that the total sample in this study was 64 respondents.

Data collection techniques in this study used a questionnaire with a scale of measurement of the research instrument using a Likert scale. The data analysis technique used is instrument test, multiple regression analysis, and hypothesis testing.

 

RESULTS AND DISCUSSION

The number of samples in this study was 64 respondents. Following the sampling method used in this study is saturated sampling, where all members of the population are sampled. One of the criteria selected as the sample was the 64 production employees whose data was processed in this study, detailing the characteristics of the respondents as follows: (1) the number of female respondents predominated, namely 63%; (2) the age of the respondents is mainly in the age range of 21-30 years, namely 25% and the least in the age range ≤ 20 years, meaning that most of the respondents are dominated by the millennial generation; (3) the length of time the respondents worked was mostly between 11-20 years, namely 29.5%, this is in line with the previous explanation that many respondents came from the millennial generation; and (4) most of the respondents' education is at the high school/equivalent level with a percentage of 57.8%.

1.   Classic assumption test

a.    Validity test

This validity test is carried out to test whether each statement item represents the indicator to be studied (Novikasari, 2016). The minimum requirement to be said to be valid is r = 0.2461. So, if the correlation between the statement item items with a total score of less than 0.246, then the items in the instrument can be said to be invalid. The validity test is carried out by looking at the correlation between the scores of each statement item and the total score (Hidayat, 2021).

From the calculation of the correlation coefficient score for each statement item from 64 respondents about the lead instrument, with a total of 10 statements; organizational culture instrument 11 statements and employee performance instrument 12 statements in the total

score of each respondent. The results of testing the 33 statement items for the research variables of leadership, organizational culture, and employee performance are valid, meaning that the respondent has understood. The respondent is consistent with the proposed statement items.

b.   Reliability Test

This reliability test is carried out to test how far the measurement results are consistently reliable. The following table of reliability test results shows that all variables have an alpha above 0.7 which means that all variables in this study are reliable.

Table 1. Variable Reliability Test Results

Variable

Cronbach Alpha

Information

Organizational culture

0.824

Reliability

Work environment

0.764

Reliability

Employee performance

0.777

Reliability

Based on table 1. It can be concluded that the positive Cronbach's Alpha value, which is greater than 0.7, which is the minimum limit for the reliability coefficient, can be considered reasonable. Thus, it is said that the statement above is reliable.

2.   Multiple Regression Analysis

Multiple linear regression analysis is used by researchers when the researcher intends to predict how the condition (rising and falling) of the dependent variable will be if two or more independent variables as predictor factors are manipulated (up and down in value) (Adnyaswari & Adnyani, 2017).

Table 2. Regression Test Results in Multiple Regression Analysis Coefficients

Model

Unstandardized Coefficients

standardized Coefficients

t

Sig.

B

std. Error

Betas

 

 (Constant)

7,718

4,815

 

1,603

.114

 

1

Culture Organization

.407

088

.448

4,613

.000

 

Environment Work

.507

.115

.429

4,418

.000

Based on table 2 above, the regression equation is as follows:

Y = 7.718 + 0.407X1 + 0.507b

It means:

1)   A constant value of 7.718 indicates that if there are no Organizational Culture (X1) and Work Environment (X2) variables, the employee performance variable is 7.718.

2)   The regression coefficient value on the Organizational Culture variable (X1) is 0.448. This means that if Organizational Culture increases by 1 unit, there will be an increase in Employee Performance of 0.448

3)   The Work Environment variable (X2) regression coefficient value is 0.429. This means that if the work environment increases by 1 unit, there will be an increase in employee performance of 0.429.

3.   Coefficient of Determination

The coefficient of determination aims to determine the influence of organizational culture and work environment, both partially and collectively, on employee performance.

Table. 3 Test Results for the Coefficient of Determination Model Summary

Model

R

R Square

adjusted R

Square

std. Error of

the Estimates

1

.772 a

.596

.583

2,539

1)   The R-value of 0.772 indicates that the correlation between organizational culture and work environment, and employee performance is vital.

2)   The Adjusted R square (R2) or the coefficient of determination (KD) is 0.583. This value indicates that the magnitude of the influence of organizational culture and work environment variables on employee performance is 58.3%. Other factors influence the remaining 43.7%.

4.   Hypothesis testing

a.    T-test

This test is conducted to determine whether the influence of each independent variable is significant on the dependent variable. If the test results tcount> table means the variable is entirely dependent. Based on table 4.20, the calculation results of tccount> table, 4.613 > 1.99897, have a sig value of 0.000 <0.05. This means that H0 is rejected and Ha is accepted, where there is a positive and significant influence between Organizational Culture (X1) on Employee Performance (Y). Based on table 4.20, the calculation results of count> ttable, namely 4.418 > 1.99897, have a sig value of 0.000 <0.05. This means that H0 is rejected and Ha is accepted, where there is a positive and significant influence between the Work Environment (X2) on Employee Performance (Y).

b.   F test

This test is conducted to determine the significance or not of the influence of the independent variables simultaneously on the dependent variable. If the test results Fcount > Ftable means the variable is significant enough to explain the dependent variable.

Table 4. Anova F Test Results

Model

Sum of Squares

df

Means Square

F

Sig.

 

Regression

580,374

2

290,187

45015

.000 b

1

residual

393,236

61

6,446

 

Total

973,609

63

 

 

From the results of the study, it was found that the F count was 45.015 > F table 3.15. thus, then Ho is rejected, and Ha is accepted. This means that there is a positive and significant influence between organizational culture and work environment together on the performance of employees of PT. Galih Indonesian Aesthetics

Following are the results of the discussion based on the results of the analysis above:

1.   The Effect of Organizational Culture (X1) on Employee Performance (Y)

Based on the average score of the Organizational Culture questionnaire (X1) answered by respondents, it was 4.20. The lowest average value of 4.01 is found in the 4th statement (P4): "There are guidelines regarding procedures for behavior in the company." While the highest average score of 4.42 is found in the 12th statement (P12), namely, "New employees learn the techniques and procedures set out in work." This means that the Organizational Culture variable (X1) is said to be very good because it is in the 4.20-5.00 interval of the assessment criteria. And based on the results of testing the first hypothesis, the results obtained stated that Organizational Culture had a significant effect on Employee Performance at PT. Galih Indonesian Aesthetics. This is evidenced by the tcount 4.613 > ttable 1.99897 and a significance value of 0.000 <0.05, then H0 is rejected, and Ha is accepted.

This study's results align with research conducted (Bodroastuti et al., 2018) which states that organizational culture has a significant effect on employee performance at PT. Pandowo Utomo Food. Based on previous research, it can be said that organizational culture has a significant effect on employee performance because the better and stronger the organizational culture passed on to its employees, the performance of its employees will indirectly increase.

2.   Effect of Work Environment (X2) on Employee Performance (Y)

Based on the average score of the Organizational Culture questionnaire (X2), the respondents answered 4.32. The lowest average value of 4.14 is found in the 8th statement (P8): "The presence of security or security guards at work makes you feel calm and safe at work." In contrast, the highest average value of 4.46 is found in the fourth statement. -11 (P11), "Work relations between subordinates and superiors are well established." This means that the Organizational Culture variable (X2) is said to be very good because it is in the 4.20-5.00 interval of the assessment criteria. And based on the results of testing the second hypothesis, the results obtained stated that organizational culture had a significant effect on the performance of employees of PT. Galih Indonesian Aesthetics. This is evidenced by the value of tcount 4.418 > ttable 1.998897 and a significance of 0.000 <0.05, H0 is rejected, and Ha is accepted.

This study's results align with research (Heruwanto et al., 2018) which states that the work environment has a positive and significant effect on employee performance at PT. Son of Taro Paloma. Based on previous research, it can be said that the work environment significantly affects employee performance because if the work environment is planned and conducive, employees will be comfortable at work. If employees feel safe and comfortable at work, then their performance will also be better and can increase.

3.   Influence of Organizational Culture (X1), Work Environment (X2) on Employee Performance (Y)

Based on the average score of the Employee Performance Questionnaire (Y), the respondents answered 4.38. The lowest average value of 4.03 is found in the 2nd statement (P2): "I can do the job without being supervised." In contrast, the highest average value of 4.56 is found in the 9th statement (P9): "I will always be careful at work to avoid things that are not desirable. This means that the employee performance variable (Y) is said to be very good because it is in the 4.20-5.00 interval of the assessment criteria. Moreover, based on the results of testing the fourth hypothesis, the results obtained stated that organizational culture and work environment had a significant effect on PT. Galih Indonesian Aesthetics. This is evidenced by the Fcount value of 45.015 > Ftable 3.15 and a significant value of 0.000 <0.05, H0 is rejected, and Ha is accepted.

This study's results align with research conducted (Wahjono et al., 2021) which states organizational culture and the environment. Working together has a significant effect on the performance of employees of PT. Siantar Top. Tbk in Sidoarjo. Based on previous research, it can be said that organizational culture and work environment positively and significantly affect employee performance. With an excellent organizational culture and environment, performance will also be good.

 

CONCLUSION

Based on data analysis and research results regarding the influence of organizational culture and work environment on employee performance, then: 1) Based on the results of the study, it can be concluded that organizational culture variables have a positive and significant effect. This means that organizational culture influences employee performance. 2) Based on the study's results, it can be concluded that the work environment variable has a positive and significant effect. This means that the work environment affects employee performance. 3) Based on the research results, it can be concluded that organizational culture and work environment variables jointly affect employee performance. This means organizational culture and work environment.

 

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