The Influence of Organizational Culture on Employee Performance

THE INFLUENCE OF ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE A. INTRODUCTION 1. Background A strong and healthy organizational culture is an issue that has been described by many companies at the global level. Robbins and Judge (2002:284) stated that a strong culture will have a major influence on the behavior of its members because of the high level of togetherness and intensity of creating an internal climate of high behavioral control. Culture is rooted in tradition, so culture reflects what is done, and not what will definitely apply (in Moeljono, 2005:16). According to Gibson in Sutanto (2003), employees or employees as the driving force of organizational operations, if employee performance is good, then organizational performance will also increase. Many variables affect employee performance, one of which is organizational culture. Organizational culture as a general perception held by all members of the organization, so that every employee who is a member of the organization will have values, beliefs and behaviors in accordance with the organization. Organizations with a strong culture will influence employee behavior and performance effectiveness. Employee performance will run in accordance with the culture adopted in the organization. In addition, the implementation of culture in a company will also shape the character of its employees by themselves in carrying out their duties and achieving the company's goals. 2. Problem Formulation Based on the background that has been explained above, the formulation of the problem in this proposal is as follows: 1) What is the meaning of organizational culture? 2) What is meant by employee performance? 3) What is the relationship between organizational culture and employee performance? 3. Objectives and Benefits The purpose of writing this proposal is to find out how much influence organizational culture has on employee performance. The benefits of writing this proposal are to provide information about the influence of organizational culture on employee performance. B. LITERATURE REVIEW 1. Definition of Organizational Culture Defined by Schein (1985) in Riani (2011:6) organizational culture as a pattern of basic assumptions discovered, created, or developed by a particular group with the intention that the organization learns to overcome or cope with its problems that arise due to external adaptation and internal integration that has been running well enough, so that it needs to be taught to new members as the right way to understand, think and feel about these problems. Organizational culture is formed by an organizational group itself to move in overcoming future challenges. Corporate culture is something very complex. For that, in measuring corporate or organizational culture, indicators are needed which are the basic characteristics of organizational culture as a real manifestation of its existence. The following are indicators of organizational culture put forward by Robbins and Coulter in Ardana (2009: 167): 1) Innovation and risk taking, namely the extent to which employees are encouraged to be innovative and take risks. 2) Attention to detail, namely the extent to which employees are expected to demonstrate accuracy, analysis and attention to detail. 3) Result orientation, namely the extent to which leaders focus on results or output rather than on how to achieve those results 4) People orientation, namely the extent to which management decisions influence people in the organization. 5) Team orientation, namely the extent to which work is structured around teams rather than individuals. 6) Aggressiveness, namely the extent to which employees are aggressive and competitive rather than cooperative. 7) Stability, namely the extent to which organizational decisions and actions emphasize efforts to maintain the status quo. 2. Employee Performance Employee performance is one of the benchmarks for assessing an organization. How to do everything related to a job, position or role in the organization is a form of employee performance that can be seen directly. Many factors also play a role in influencing performance. Employee performance definition according to Kusriyanto (1991) in Mangkunegara (2012:9) is a comparison of the results achieved with the participation of labor per unit of time (usually per hour). Robbins (2006: 260) states that there are six indicators to measure individual employee performance, namely: 1) Quality. Work quality is measured from employee perceptions of the quality of work produced and the perfection of tasks against employee skills and abilities. 2) Quantity. Is the amount produced expressed in terms such as the number of units, the number of activity cycles completed. 3) Effectiveness. Is the level of use of organizational resources (labor, money, technology, raw materials) is maximized with the intention of increasing the results of each unit in the use of resources 4) Work commitment. Is a level where employees have a work commitment to the agency and employee responsibility to the office. 3. Relationship between Organizational Culture and Employee Performance The relationship between organizational culture and employee performance or members of the organization can be reflected in the behavior of the organization. When employees imitate behavior that is in accordance with their organizational culture, there will be satisfaction and even direct or indirect rewards. Organizational culture becomes a behavioral guideline for its members that is unconsciously applied in carrying out its activities. The importance of organizational culture in relation to employee performance is reinforced by Robbins' statement (2004:60) that in reality, one study of organizational culture suggests that employees in companies with a strong culture are more committed to their company than employees in companies with a weak culture. Companies with a strong culture will also use their recruitment efforts and socialization practices to foster employee commitment. And there is increasing evidence that a strong culture is related to high organizational performance. Organizational culture that is truly managed as a management tool will influence and become a motivator for employees to behave positively, dedicatedly and productively. Cultural values are not visible, but are a force that drives behavior to produce performance effectiveness. Kreitner and Kunicki in Sopiah (2008:183) suggest that: Individual work performance or achievement is greatly influenced by the national culture that inspires the birth of organizational culture. If the company has a good organizational culture, job satisfaction will be high and have an impact on increasing performance. Conversely, if the organizational culture is unhealthy, it will trigger a decline in the performance of individual members of the organization which in turn will affect organizational performance. C. CONCLUSION AND SUGGESTIONS 1. Conclusion Organizational culture is formed by an organizational group to move in overcoming future challenges. Meanwhile, employee performance is one of the benchmarks for assessing an organization. How to do everything related to a job, position or role in an organization is a form of employee performance that can be seen directly. The influence of organizational culture on employee performance is very influential because companies with a strong culture will also use their recruitment efforts and socialization practices to foster employee commitment. And there is increasing evidence that a strong culture is related to high organizational performance. 2. Suggestions Organizational culture influences employee performance. A good organizational culture will produce good employees too. Therefore, in order to create a good organizational culture, a firm and authoritative leader is needed so that a good organizational culture can be created. The author still realizes that the writing of this proposal is still far from perfect, so the author really expects criticism and suggestions to improve the writing of this proposal.