The Influence of Organizational Culture on Bank Employees’ Performance with Organizational Commitment as an Intervening Variable

Abstract

It is well known that employees are the most important element in determining the back and forth of a company. Therefore, the bank's management needs to study in detail and evaluate all the factors that affect the productivity of their employees. This will allow the development of an effective strategy for human capital development to successfully achieve all the bank's goals. This study aims to determine and analyze the effect of organizational culture on employee performance with organizational commitment as an intervening variable. The sample in this study were 51 employees of Bank Syariah Mandiri who worked at Bank Syariah Indonesia's Thamrin branch office after the merger. Data was collected by distributing questionnaires using a 5-point Likert Scale. The analysis method used in this research is Partial Structural Equation Modeling (PLS-SEM), then processed through the SmartPLS version 3.3.5 application. This study proves that organizational culture has a positive influence on employee performance through organizational commitment. Changing organizational culture is not an easy undertaking. So, managers must convince their employees of the benefits of change and show through collective experience that the new culture is the best way to operate to yield success. Higher levels of organizational commitment among employees also can improve their performance. Implementing new strategies or policies becomes more manageable if a bank company has dedicated employees since they tend to embrace the need for change.