Effect Of Employee Engagement And Organizational Culture On Employee Performance At PT Bank BPR Pijer Podi Kelengan Sukamakmur

by ADMIN 127 views

Introduction

In today's competitive business landscape, employee performance plays a crucial role in the progress and success of a company. Employee engagement and organizational culture are two key elements that can significantly impact employee performance, especially in large companies such as PT Bank BPR Pijer Podi Kelengan Sukamakmur. However, research has shown that employee performance in this company tends to be less than optimal, as evidenced by a decrease in company profits. This study aims to analyze the relationship between employee involvement as a variable of emotional attachment and organizational culture to employee performance at PT Bank BPR Pijer Podi Kepadamakmur.

Background

Employee engagement refers to the involvement and emotional attachment of employees to their organization. It is a critical factor in determining employee performance, as it influences motivation, commitment, and job satisfaction. On the other hand, organizational culture refers to the set of values, norms, and beliefs that shape the behavior and attitudes of employees within an organization. A positive organizational culture can foster a conducive work climate, promote innovation, and facilitate cooperation between teams.

In the context of PT Bank BPR Pijer Podi Kelengan Sukamakmur, researchers found a weak emotional attachment between the company and its employees, as well as the company's culture that was not yet fully embedded. This study aims to investigate the relationship between employee involvement and organizational culture to employee performance in this company.

Methodology

This study employed a quantitative approach with an associative design. Primary data was collected through a questionnaire distributed to 32 respondents chosen using the saturated sample technique. Secondary data was also used to support the findings. The data analysis involved instrument testing and classic assumption testing to ensure data accuracy, as well as multiple linear regression analysis and hypothesis testing to draw conclusions.

Results

The results showed that the involvement of employees and organizational culture had a level of linkage of 82.3% with employee performance, indicating a strong relationship between the two variables and employee performance. The analysis also revealed that the two variables had an influence of 67.7% on improving performance, highlighting the importance of both in the process of forming and improving employee performance within a company or organization.

Discussion

The findings of this study suggest that employee involvement and organizational culture are critical factors in determining employee performance. Employee involvement not only functions as a motivational drive but also as a bridge in building stronger relationships between employees and companies. When employees feel involved, they tend to show a greater commitment to the organization's goals, creating a positive work environment where employees feel valued and motivated to provide the best.

Strong organizational culture also plays an important role in creating a conducive work climate. Positive culture can strengthen joint values, strengthen company identity, and facilitate cooperation between teams. Companies with good organizational culture are able to inspire employees to innovate and contribute more in achieving company goals.

Conclusion

In conclusion, this study highlights the importance of employee involvement and organizational culture in improving employee performance. By understanding and implementing policies that encourage involvement, companies can not only improve employee performance but also improve profitability and competitiveness in the market. The holistic approach in managing human resources will produce better performance and provide long-term benefits for the company.

Recommendations

Based on the findings of this study, the following recommendations are made:

  1. Develop employee involvement policies: Companies should develop policies that encourage employee involvement, such as regular feedback, recognition, and rewards.
  2. Strengthen organizational culture: Companies should focus on building a positive organizational culture that promotes joint values, company identity, and cooperation between teams.
  3. Provide training and development opportunities: Companies should provide training and development opportunities to employees to enhance their skills and knowledge.
  4. Encourage innovation and creativity: Companies should encourage innovation and creativity among employees to inspire them to contribute more in achieving company goals.

Limitations

This study has several limitations, including:

  1. Small sample size: The sample size of 32 respondents may not be representative of the entire population.
  2. Limited scope: The study only focused on employee involvement and organizational culture, and did not consider other factors that may influence employee performance.
  3. Cross-sectional design: The study used a cross-sectional design, which may not capture the dynamic nature of employee performance over time.

Future Research Directions

Future research should aim to:

  1. Investigate the impact of employee involvement and organizational culture on employee performance in different industries and contexts.
  2. Examine the relationship between employee involvement and organizational culture with other factors that influence employee performance, such as job satisfaction and motivation.
  3. Develop and test interventions that aim to improve employee involvement and organizational culture.

By understanding the relationship between employee involvement and organizational culture and employee performance, companies can take proactive steps in improving the conditions of involvement and work culture, thus creating an environment that supports mutual growth and success.

Q1: What is employee engagement, and why is it important?

A1: Employee engagement refers to the involvement and emotional attachment of employees to their organization. It is a critical factor in determining employee performance, as it influences motivation, commitment, and job satisfaction. Employee engagement is essential because it can lead to improved productivity, reduced turnover, and increased job satisfaction.

Q2: What is organizational culture, and how does it impact employee performance?

A2: Organizational culture refers to the set of values, norms, and beliefs that shape the behavior and attitudes of employees within an organization. A positive organizational culture can foster a conducive work climate, promote innovation, and facilitate cooperation between teams. It can also influence employee performance by shaping their attitudes, behaviors, and motivations.

Q3: How can companies improve employee engagement and organizational culture?

A3: Companies can improve employee engagement and organizational culture by:

  1. Developing employee involvement policies: Regular feedback, recognition, and rewards can encourage employee involvement.
  2. Strengthening organizational culture: Building a positive organizational culture that promotes joint values, company identity, and cooperation between teams.
  3. Providing training and development opportunities: Enhancing employees' skills and knowledge can improve their performance and engagement.
  4. Encouraging innovation and creativity: Inspiring employees to contribute more in achieving company goals.

Q4: What are the benefits of improving employee engagement and organizational culture?

A4: Improving employee engagement and organizational culture can lead to:

  1. Improved productivity: Engaged employees are more productive and efficient.
  2. Reduced turnover: Employees who are engaged and satisfied are less likely to leave the organization.
  3. Increased job satisfaction: Employees who are engaged and satisfied are more likely to be happy and motivated.
  4. Improved profitability: Companies with engaged and satisfied employees tend to perform better financially.

Q5: How can companies measure employee engagement and organizational culture?

A5: Companies can measure employee engagement and organizational culture using various tools and methods, such as:

  1. Surveys and questionnaires: Regularly collecting feedback from employees to understand their attitudes and behaviors.
  2. Employee engagement metrics: Tracking metrics such as employee turnover, absenteeism, and productivity.
  3. Organizational culture assessments: Conducting assessments to understand the organization's culture and values.
  4. Leadership and management feedback: Collecting feedback from leaders and managers to understand their perceptions of the organization's culture.

Q6: What are the challenges of improving employee engagement and organizational culture?

A6: Companies may face challenges when improving employee engagement and organizational culture, such as:

  1. Resistance to change: Employees may resist changes to the organization's culture or policies.
  2. Limited resources: Companies may not have the resources or budget to implement changes.
  3. Lack of leadership support: Leaders and managers may not be supportive of changes to the organization's culture.
  4. Difficulty in measuring success: Companies may struggle to measure the success of their efforts to improve employee engagement and organizational culture.

Q7: How can companies sustain improvements in employee engagement and organizational culture?

A7: Companies can sustain improvements in employee engagement and organizational culture by:

  1. Continuously monitoring and evaluating: Regularly assessing the organization's culture and employee engagement.
  2. Providing ongoing training and development: Continuously enhancing employees' skills and knowledge.
  3. Encouraging open communication: Fostering an open and transparent work environment.
  4. Recognizing and rewarding employees: Regularly recognizing and rewarding employees for their contributions.

By understanding the importance of employee engagement and organizational culture, companies can take proactive steps to improve these critical factors and achieve long-term success.