Developing Human Resources Personality to Improve Employees’

Performance of Indonesian Bankers

Elisabet Siahaan

Magister Management Property and Valuation, Postgraduate Program, Universitas Sumatera Utara, Medan, Indonesia

Keywords: Organizational Culture, Employee Commitment, Employee Performance.

Abstract: Sustainable development requiring the utilization of resources owned by the company today and in the

future. This study focused on discussing aspects of human resource personality development that referred to

bankers. The purpose of this study was to evaluate the role of organizational culture and employee

commitment to the organization as an existing system in the organization to improve employee

performance. A number of 196 bankers participated in this study. Data were collected by using customized

questionnaires adapted on the banking aspect. The model was evaluated by using multiple linear regression

analysis. The results indicated that the ability of employees adapting to organizational culture holds the

most dominant influence in encouraging the performance of bankers. Employee commitment to the

organization also has a positive and significant impact in improving the performance of bankers. Employees

of the banking system that adhere to existing systems within organizations such as adhering to

organizational culture and having a high commitment to the organization will produce superior

performance.

1 INTRODUCTION

Sustainable development is a challenge for

management and economy in facing the global era

(Singh, 2014). In an effort to achieve sustainable

growth, the synergy between natural resources and

human resource development is needed. Synergy

activities should be done by the company in the

short term and also for the long term. One important

point in this statement is the need for human

resource development that supports management so

that the organization is able to achieve better

performance in the future. The achievement of

sustainable development is complex (Oladeji, 2014)

but it is the key in making the global economy

successful (Osborn et al. 2015). The trigger of

sustainable achievement relates to human resource

and natural resource management (Ojo and

Oluwatayo, 2016).

In the midst of Indonesia's economic slowdown

due to the global crisis and US policy on import

restrictions affecting other countries, and the policy

of the US Central Bank to raise interest rates, a

healthy and strong Indonesian banking is highly

needed. Strong and healthy banking is strongly

influenced by many things including internal and

external conditions. This study looks at ways to

improve the banking performance from the internal

side, i.e. from the organizational culture and

organizational commitment.

Like humans as individuals who have

personality, organizations also have personality. The

personality of an organization is better known as the

organizational culture that becomes the identity, the

distinction between one organization and another

and as a tool for determining the direction of the

organization, directing what employees can and

cannot do. Organizational culture contains values,

norms that serve as guidelines in behaving, to bind

all different members in order to behave the same in

achieving organizational goals. Organizational

culture is not a tool that impedes the freedom of

employees, but rather a means to improve employee

performance (Siahaan, 2017). Therefore,

organizational culture is the identity of an

organization, fostering commitment to achieve

greater goals by overriding self-interest and

directing employee behavior so as to achieve

performance with behavior based on noble values.

Strong organizational culture is characterized by

the core values of organization that are firmly held

and widely agreed upon. The more members of the

118

Siahaan, E.

Developing Human Resources Personality to Improve Employees’ Performance of Indonesian Bankers.

DOI: 10.5220/0009898600002480

In Proceedings of the International Conference on Natural Resources and Sustainable Development (ICNRSD 2018), pages 118-122

ISBN: 978-989-758-543-2

organization that receive core values and the greater

their commitment to those values, the stronger the

culture is, so the performance increases. In line with

this definition, a strong culture will obviously have a

great influence in the attitude of the members of the

organization compared to the weak culture. The

specific result of a strong culture is the low entry of

workers. A strong culture will show high agreement

on organizational goals among its members.

Employees who are able to adapt to organizational

culture will behave according to organizational

culture, so that the organizational culture is stronger

and less management needs related to the

development of formal rules and regulations in

guiding employee behavior are needed due to the

existence of organizational commitment of

employees which results in improved performance

(Uddin, 2013).

A good fortune for a company if it has

employees who have a high commitment to the

organization. Therefore, the company conducts

selection in the form of written and oral

examinations and conducts interviews to get

employees who have the same culture with corporate

culture and who have a high commitment to the

organization. Employees with a strong desire to

remain as members of the organization (loyal),

desire to strive for the sake of the organization's

desire and accept the value and goals of the

organization which will result in high performance .

Therefore it is very important to examine and

analyze the source of the cause of the high

commitment of employee organizations, especially

in banking companies that rely heavily on the

performance of employees in winning competition

with banks in the country and abroad.

2 LITERATURE REVIEW

2.1 Organizational Culture

The culture of an organization refers to a system of

sharing meaning by members that distinguishes

organizations from other organizations (Robbins and

Judge, 2015). Organizational culture refers to a

system of sharing meaning by members that

distinguishes the organization from other

organizations (Robbins and Coutler, 2012).

Organizational culture is a hallmark of a company

that includes a set of trust values that help

employees to know what action can or cannot be

done related to formal and informal structures within

the corporate environment.

Mangkunegara (Mangkunegara, 2013) defines

organizational culture as a set of assumptions, or

system of beliefs, values and norms developed in

guiding organizational behavior for its members to

address external and internal adaptation issues.

Djokosusanto (2003) sees a link between

organizational culture and employee performance

stating that the better the quality of organizational

culture factors ae, the better the employee

performance will be. Organizational culture has a

direct impact on improving organizational

performance. Employees applying organizational

culture will result in high performance (Anderson et

al. 2008; Ehgbal et al. 2017; Marbawi et al. 2018;

Mathis et al. 2014; and Siahaan, 2017).

2.2 Organizational Commitment

Organizational commitment is a measure of

willingness to retain employees with a company in

the future (O’reilly and Chatman, 1986).

Organizational commitment will affect how the

behavior of the worker within the compan. Meyer

and Allen propose three forms of organizational

commitment which are still widely used today in

measuring employee organizing commitments

(Meyer and Allen, 1991). Organizational

commitment is divided into three forms, namely

affective commitment that shows the emotional

bond between employees and the organization; an

ongoing commitment that demonstrates employee

engagement with the organization on the basis of

work sustainability or work stability concerns; and

normative commitment that shows employee bonds

on the basis of the norms of employees' debt to the

organization that raises them. The study of the

empires indicates that organizational commitment

has a positive and significant effect on the

performance of civil servants in West Coast Region

(Lily et al. 2017). Research of Yetta (2012) and

Wibowo (2012) conclude that organizational

commitment is one that affects the behavior of

employees, that is faithful to the organization. A

high organizational commitment will keep

employees loyal to their jobs and retain their

positions to improve their performance in companies

where organizations want workers who want to do

new things and have not done before. Employees

who have a commitment to the organization shows

the increase in organizational effectiveness through

high performance achievement.

Developing Human Resources Personality to Improve Employees’ Performance of Indonesian Bankers

119

3 RESEARCH METHODS

3.1 Location and Time of Study

This research was conducted in Medan in the year

2017. The unit of analysis in this study was a

banker. This research was a case study conducted in

Bank Sumut Main Branch of Medan which was

located at Jalan Imam Bonjol No. 48, Medan, North

Sumatra, Indonesia.

3.2 Participants

The research was conducted by distributing

questionnaires and short interviews to employees of

Bank Sumut. The approach by Slovin method

(Sugiono, 2013) indicated that 196 employees of

Bank Sumut Main Branch of Medan were required.

Sampling method was done randomly by using

reference list of employees of Bank Sumut.

3.3 Variable Operationalization

This research applied analysis by using two

independent variables, that were organizational

culture and organizational commitment and one

dependent variable that was employee performance.

Operationalization of variables in the study refers to

Table 1.

Table 1: Variable Operationalization

Notation Variable Operational

Defnition

Dimension Measurement

Scale

Organizational

Culture

Value system of

Bank Sumut held

by employees of

Bank Sumut Main

Branch Medan

itself, which

then affects the

way of working

and behaving of

the members of

the organization

Truste

Interval

Energetic

Friendly

Secured

Integrity

Organizational

Commitment

A situation where

employees of

Bank Sumut Main

Branch Medan

feel bound by the

organization and

want to maintain

membership in the

organization and

devote themselves

to the interests of

the organization

Affective Interval

Sustaine

Normative

Y Employee

Performance

Ability of

employees of

Bank Sumut in

achieving the

results of work in

quality and

quantity in

carrying out tasks

in accordance

with the

responsibilities

given to them

Quality Interval

3.4 Instrument Validity and Reliability

Questionnaires in this study were prepared by

researchers by using theoretical studies tailored to

the situation at Bank Sumut. Therefore the

researchers tested the validity and reliability to

measure the feasibility of the instruments used

(Sekaran, 2003). Validity test was done by using

Pearson Correlation and reliability test was done by

using Cronbach's Alpha. The reliability summary

refers to Table 2.

Table 2: Cronbach's Alpha Research Questionnaire

Variables Number of

Statements

Cronbach's

Alpha

Conclusio

Organizational

Culture

15 0.831 Reliable

Organizational

Commitment

9 0.901 Reliable

Employee

Performance

9 0.822 Reliable

Validity test was done by using correlation of

statement items to the total score for each variable.

The correlation value > 0.361 indicated an exact

statement item measuring the research variable. The

validity test indicated that the whole item was

accurate in measuring each research variable. Table

2 provides information that the instruments applied

in this study were reliable and appropriate to be used

to evaluate the research model.

3.5 Data Analysis Method

This research used multiple linear regression

analysis to evaluate the influence of independent

variable to dependent variable. The classic

assumption test was used to ensure that the

regression model generated through this research

had an appropriate model in explaining the

phenomenon occurring in Bank Sumut.

4 RESULTS AND DISCUSSION

Multiple linear regression analysis in this study was

conducted systematically, namely testing the

coefficient of determination, simultaneous test, and

partial test. Table 3 indicates that organizational

culture and organizational commitment variables

could account for 45.4% of variations in employee

performance. Correlation analysis of 0.678 indicated

a strong relationship between independent variables

to the dependent variable in this study. This proved

ICNRSD 2018 - International Conference on Natural Resources and Sustainable Development

120

that the research model was potentially important in

explaining employee performance.

Table 3: Coefficient of Determination

Model R R Square

Adjusted R

uare

Std. Error of

the Estimate

,678

,459 ,454 ,449977

a. Predictors: (Constant), Organizational Commitment,

anizational Culture

. Dependent Variable: Employee Performance

Table 4: Simultaneous Test (F-test)

Model Sum of

Squares

Df Mean

Square

F Sig.

ression 33,195 2 16,597 81,971 ,000

Residual 39,078 193 ,202

Total 72,273 195

a. Dependent Variable: Employee Performance

.Predictors: (Constant), Organizational Commitment,

Organizational Culture

Table 4 indicates the organizational culture and

organizational commitment variables of employees

significantly influenced the employee performance

of Bank Sumut Main Branch Medan. The evaluation

of the effect between the research variables is

specifically described in Table 5.

Table 5: Partial Test (t-test)

odel Unstandardized

Coefficients

Standardized

Coefficients

t Sig. Collinearity

Statistics

B Std.

Error

Beta Tolerance VIF

(Constant) ,286 ,278 1,029 ,305

Organizational

Culture

,613 ,076 ,456 8,029 ,000 ,870 1,149

Organizational

Commitment

,337 ,053 ,364 6,413 ,000 ,870 1,149

a. Dependent Variable: Employee Performance

Table 5 gives an influence between research

variables that explained employee performance.

Based on the table, the regression equation in this

research could be arranged as:

Y = 0.286 + 0.613 X

+ 0.337 X

(1)

Equation (1) indicates that in the initial

conditions without any adaptation of organizational

culture and commitment to the organization, the

performance of the banker only reached the level of

0.286 indicating a very low performance. Each 1

point increased in organizational culture would

improve performance by 0.613. This meant that

every 1 point increased in the application of bankers

to the organizational culture, then the performance

of bankers rose by 0.613. Every increase of 1 point

in organizational commitment would increase the

performance of employees of banks amounted to

0.337 points. It meant that 1 point of employee

commitment to organization increased, then

employee performance would increase by 0,337.

The results indicated that both research variables

have a positive and significant effect on employee

performance. Of the two variables in the model, the

ability of bankers to adapt to organizational systems

that include organizational culture in the work

environment of employees has a dominant role to

the performance of bankers. Successful employee-

accepted and employed cultures play an important

role in encouraging the formation of behaviors that

perform their work very well which leads to the

improvement of employee performance that is

considered very important for employee success and

banking success (Anderson et al. 2008;

Djokosusanto, 2003; Ehgbal et al. 2017; Marbawi et

al. 2018; Mathis et al. 2014; and Siahaan, 2017).

Bank employees who are highly committed to

the organization will have a high loyalty to the

organization, will work harder, prioritize the

interests of the organization rather than personal

interests, want to continue to provide benefits and

contributions to banking workplace, have an

emotional bond with the banking place to work

thereby encouraging excellent behavior that leads to

improved performance of bankers (Lily at al. 2017;

Meyer and Allen, 1991; O’Reilly and Chatman,

1986; Wibowo, 2012; and Yetta, 2012).

5 CONCLUSION

This study provided empirical evidence that the

ability of bankers to develop self-personality by

following the existing work system within the

organization would have an impact on increased

performance. Organizational culture is mandatory to

be applied by every employee to produce quality

work. Employee performance is significantly

influenced by organizational culture and employee

commitment to the organization. Employees who are

able to accept organizational culture well and build

organizational commitment will perform better than

those who are less able to adapt to the company's

environment. The suitability of employee

personalities with organizational culture will help

achieve better employee performance.

Organizational culture can encourage the

commitment of employees in the organization so as

to produce consistency in behaving to produce

quality performance that benefits the organization.

Developing Human Resources Personality to Improve Employees’ Performance of Indonesian Bankers

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6 SUGGESTION

The ability of bankers to apply organizational

culture and the ability to build commitment in the

employees is an important and must always be done.

Organizational culture is used to direct employees to

behaviors that the company expects employees to

apply during their work in the company.

Organizational culture is a process of understanding

and acceptance of the work system and values that

exist within an organization. Organizational culture

cannot be quickly received and executed well by

employees. Employees need to be selected

appropriately so as to get employees who have the

appropriate personality culture of the organization.

Top management should always set an example in

applying an organizational culture in every word and

behavior. Employees also need to be given training,

socialization and adaptation in order to be able to

accept and implement the corporate culture as

expected by the company. This study strongly

suggests the development of employee personalities

in the form of learning and cultural adaptation and

build organizational commitment through increased

employee participation to the company directly. This

effort will help companies improve employee

performance that brings improved corporate

performance and build sustainable development for

the company.

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