Effect of organizational culture on organizational learning, employee engagement, and employee performance: Study of banking employees in Indonesia

Abstract

Banking institutions are still interesting to study, as are the problems of their employees. If, in the past, organizational culture was an ideology that was difficult to change, now it is possible to change it due to various economic, social, and political upheavals. This study aims to examine the effect of organizational culture on organizational learning, employee engagement, and employee performance in the banking sphere of Indonesia, involving 215 cashiers, customer service staff, and security guards. Data were analyzed for direct and indirect effects using SEM PLS, with organizational culture as an independent and organizational learning, employee engagement, and employee performance as dependent variables. It was found that organizational culture indirectly affects employee performance through organizational learning and employee engagement, which produced the most significant effect. This serves as evidence that the administration of personnel in the banking sector must be carried out comprehensively, taking into account the needs of employees and adjusting to organizational needs and capabilities. This study can serve as a valuable point of reference for similar research by providing variations to respondents based on age, bearing in mind that the requirements of employees in the current generation are different from previous generations.