The Influence Of Organizational Culture And Compensation On Employee Performance
DOI:
https://doi.org/10.54099/ijmdb.v5i2.2039Keywords:
Organizational Culture, Compensation, Employee PerformanceAbstract
This study aims to analyze organizational culture, compensation, and employee performance at PT XYZ, as well as to examine the effect of organizational culture and compensation on employee performance. The research adopts a quantitative descriptive approach. The population of this study comprises employees of the Supporting Department at PT XYZ Regional East Kalimantan. Using the Slovin formula, a minimum sample size of 162 respondents was determined. Data were collected through structured questionnaires and secondary data sources. The data were subsequently analyzed using the Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results show that organizational culture has a positive and significant influence on employee performance, while compensation does not have a positive and significant influence on employee performance. These findings indicate that strengthening organizational culture can be an important factor in improving employee performance, whereas compensation has not demonstrated a significant influence on performance improvement. The study concluded that organizational culture significantly affected employee performance, while compensation did not. The novelty of this study lies in providing updated empirical evidence from the palm oil industry.
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