The Journal of Asian Finance, Economics and Business

Korea Distribution Science Association (한국유통과학회)
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Factor Influencing Employee Performance: The Role of Organizational Culture

  • DIANA, Ilfi Nur (Department of Management, Faculty of Economics, State Islamic University of Maulana Malik Ibrahim) ;
  • SUPRIYANTO, Achmad Sani (Department of Management, Faculty of Economics, State Islamic University of Maulana Malik Ibrahim) ;
  • EKOWATI, Vivin Maharani (Department of Management, Faculty of Economics, State Islamic University of Maulana Malik Ibrahim) ;
  • ERTANTO, Arga Hendra (Department of Management, Faculty of Economics, State Islamic University of Maulana Malik Ibrahim)
  • Received : 2020.11.05
  • Accepted : 2021.01.08
  • Published : 2021.02.28
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Abstract

This study examines the role of Leadership style and Organizational culture in predicting employee Performance. The aim of the research is: 1) to know the direct effect of Democratic Leadership on employee Performance, 2) to know the direct effect of Democratic Leadership on organizational culture, 3) to know the direct effect of Organizational culture on employee Performance, 4) to test the role of Organizational culture as mediation the effect of Democratic Leadership on employee Performance. The respondents were all employees at the Education Office East Java. The sampling method was used to collect data from 106 employees at the Education Office East Java, Indonesia, using surveys and questionnaires. The data obtained were analyzed using the Path Analysis with SPSS statistical software. The study had four findings. Firstly, Democratic Leadership has a significant effect on employee Performance. Secondly, Democratic Leadership also has a significant effect on Organizational culture. Thirdly, Organizational culture has a significant effect on employee performance. Fourthly, organizational culture mediates the effect of Democratic Leadership on employee Performance. Furthermore, the direct effect of Leadership style and the mediation role contribute to knowledge. The results showed that implementing Democratic Leadership supported by a conducive organizational culture guides employee to perform better.

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