The Influence of Organizational Culture and Compensation on Employee Performance with Work Motivation as a Mediating Variable

Abstract

Objective – This study examines the influence of organizational culture and compensation on employee performance with work motivation as a mediating variable. This study was conducted at the State Owned Bank of Pontianak, Indonesia. Methodology/Technique – The population in this study is 150 employees from a State-Owned Bank. The sampling method uses census techniques so that the number of samples used is 150 employees. The research data was collected using a questionnaire which is then analyzed using a path analysis technique using SPSS software to examine the relationships among the constructs, which are: organizational culture, compensation, work motivation and employee performance. Findings – The results show that, in the first substructure, organizational culture and compensation have a significant influence on work motivation. In the second substructure, organizational culture, compensation and work motivation have a significant influence on employee performance. The path analysis results show that work motivation does not mediate the relationship between organizational culture and employee performance, whereas the relationship between compensation and employee performance is mediated by work motivation. Novelty – Previous studies have been carried out in many western countries, raising doubts about generalizations in the same research results in developing countries such as Indonesia. Therefore, the novelty is that this study is carried out in the context of developing countries, especially in the State-Owned Bank in West Kalimantan, Indonesia. Type of Paper: Empirical. JEL Classification: L22, M12, M19. Keywords: Organizational Culture; Compensation; Work Motivation; Employee Performance. Reference to this paper should be made as follows: Daud, I. 2020. The Influence of Organizational Culture and Compensation on Employee Performance with Work Motivation as Mediating Variable, J. Mgt. Mkt. Review 5(2) 122 – 128 https://doi.org/10.35609/jmmr.2020.5.2(5)