ORGANIZATION CULTURE AS DETERMINER OF EMPLOYEE PERFORMANCE IMPROVEMENT WITH WORK MOTIVATION AS MEDIATION VARIABLE (A STUDY ON SOME VILLAGE CREDIT INSTITUTION (LPD) IN BADUNG REGENCY-BALI)

Abstract

The purpose of this study is; to know and analyze the influence of organizational culture on employee performance, to find out and analyze the influence of employee motivation on employee performance; to find out and analyze the influence of organizational culture on employee motivation; to find out and analyze the role of mediating employee motivation in the relation between organizational culture and the performance of LPD employees in Badung Regency. The study sample was 12 which were considered to represent rural and urban areas in the Badung Regency area. The analysis technique used the Partial Least Square (PLS) approach. In PLS, path modeling there are two models, namely the outer model and inner model, where both of these criteria were used in this study. Based on the results of testing the hypothesis that the testing of hypothesis 1, it was found that organizational culture has no significant negative effect on employee performance. In testing hypothesis 2, it was found that organization culture had a significant positive effect on employee motivation. In testing hypothesis 3, it was found that work motivation was influential significant positive effect on employee performance. On the other hand, the indirect influence of organizational culture on employee performance through work motivation as an intervening variable with zobel test calculations which can be stated that work motivation variables are able to mediate the influence of organizational culture on employee performance in LPD of Badung Regency.