The Influence of Work Motivation and Organizational Culture on

Improving Employee Performance in Financial Division at

Companies in Energy Sector

Dita Bagus Hendra Kusuma

, Windijarto

and Pinky Saptandari

Postgraduate, Universitas Airlangga, Surabaya, Indonesia

Department of Management, Universitas Airlangga, Surabaya, Indonesia

Faculty of Social and Political Science, Universitas Airlangga, Surabaya, Indonesia

Keywords: Work Motivation, Organizational Culture, Employee Performance

Abstract: The purpose of this study is to analyze the influence of work motivation and organizational culture on

improving employee performance in the field of finance in companies engaged in energy located in east

Java. Organizational culture can help to improve employee performance. This is because it can create a

strong motivation for employees to develop the best ability to take advantage of opportunities provided by

the organization where they are sheltered. In realizing a suitable organizational culture applied to an

organization, it requires the support and participation of all employees within the organization. In an effort

to achieve employee performance in the field of finance it will be determined by several factors that

theoretically have a linkage that includes work motivation and organizational culture. This research uses a

quantitative approach by distributing questionnaires to collect the required data. The sample used is 36

employees from finance. Based on the results of simultaneous analysis, work motivation variables and

organizational culture variables together affect employee performance. The result of the correlation

coefficient value has a strong enough relationship. While the value of coefficient of determination indicates

that the work performance of employees in finance is influenced by work motivation and organizational

culture.

1 INTRODUCTION

In today's business world competition is getting

tighter, both in manufacturing and service industry

sectors. That is why companies are trying to adjust

to changes that occur inside and outside the

company. The smooth running of the company's

operations can not be separated from the quality of

labor. The better the quality of the workforce the

more smoothly the operations of the company. One

method that should be used by the leadership of the

company to improve employee performance is by

providing optimal motivation. Through the

motivation given to the employees then the effort to

improve employee performance can be achieved in

accordance with company goals.

Perry (2008) states that one of the factors behind

motivation is organizational culture. Another factor

that also has an influence on motivation is the role of

the manager. Learning theory suggests that

individuals learn gradually by paying attention to

others. The figure of a positive and credible manager

makes employees aware the behavior that is needed

in their social context and will try to imitate them.

Motivation is the process of calculating the intensity,

direction, and persistence of a person in achieving

goals. Employee motivation can help the company

achieve its goals.

An employee can do their job well because

they have a high work motivation, both from within

themself and from outside. When an employee does

not do a good job, the employee may not have the

motivation to work. Motivation is the provision of

motives, the inclusion of motives, or actions that

cause encouragement.

Motivation as a willingness to give the incentive

to someone concerned so that person is working

with all their power and efforts. Provision of

motivation is one of the goals of a leader for

employees to be motivated to work in accordance

with the reference work, so that the goal of the

Bagus Hendra K, D., Windijarto, . and Saptandari, P.

The Inﬂuence Of Work Motivation And Organizational Culture On Improving Employee Performance In Financial Division At Companies In Energy Sector.

DOI: 10.5220/0007537200450050

In Proceedings of the 2nd International Conference Postgraduate School (ICPS 2018), pages 45-50

ISBN: 978-989-758-348-3

company can be achieved well. It also includes an

element of effort, i.e. a quality effort that is directed,

consistent with the goals of the organization. Finally,

motivational treatment as a process of fulfilling the

needs of motivated employees in a state of tension

and to relax their tensions out of effort. If the effort

succeeds in delivering the fulfillment of the need,

the tension will decrease. Motivation will not exist if

there is no need and achievement. Motivation grows

according to the level of needs, once fulfilled at a

certain level, then motivation again meets the higher

level and so on.

In general, organizational culture is a system of

shared organizational meaning adopted by its

members that distinguishes an organization from

others. Furthermore, organizational culture is simply

defined as the way an organization performs its role

or a set of shared beliefs, attitudes, norms and

behaviors so that each of its members is guided by

these factors to make continuous improvement.

The process of developing good performance is

generated if there is communication between

employees so as to form an internalization of a

strong and understood organizational culture in

accordance with organizational values that can

generate positive perceptions among all levels of

employees to influence the climate of employee

satisfaction, which has an impact on improving

employee performance.

Figure 1: Division Performance year 2017

Based on the description above, a study can be

made about the influence of work motivation and

organizational culture on improving employee

performance. The location and subject of this

research will be focused on employees of the

company's financial division in the energy sector.

The reason is that only the performance of the

financial sector has increased to exceed the expected

target, while from the other divisions in the same

year none exceeded the target set.

This paper takes steps to improve knowledge

about the influence of employees’ work motivation

and organizational culture in the company to

increase employee performance. This paper has two

objectives: (1) to investigate and analyze the

influence of work motivation on employees

influence on work performance (2) to determine

whether organizational culture of the company has

added value in motivating employees to achieve.

2 LITERATURE REVIEW

2.1 The Relationship between Work

Motivation and Employee

Performance

An employee can do their job well because they

have a high work motivation, both from within

themself and from outside. When an employee does

not do a good job, the employee may not have the

motivation to work. In one opinion motivation is the

provision of the driving force that creates the

enthusiasm of one's work so that they will cooperate,

work effectively and integrate with all their efforts

to achieve satisfaction.

Maslow says that every individual has needs that

are structured hierarchically from the most basic

level to the highest level. Although Maslow's theory

is often used as a framework of analysis there is still

a weak side, because the hierarchy is interpreted as

terraced and can be analogous to a ladder, then

logically the two points may be climbed without

going through the first rung first and so on the last

rung. Whereas in reality, various types of human

needs are endeavored simultaneously, although with

different intensities. Differences in perceptions with

existing abilities mean people try to meet the

satisfaction of the perceived needs of the most

urgent by not ignoring all other needs.

The framework of needs expressed by Maslow’s

theory seeks to show the motives and stages of

human needs, whereas Herzberg’s theory provides

the concept of purpose and intensiveness that can

meet the needs. Thus, before determining what

factors can encourage or motivate employees, we

must first know where the employee is on the level

of which need. On the other hand, if it is known that

the goals to be achieved by employees can be

expected to be the strongest needs, such as money,

and goals tend to meet needs at the physiological

ICPS 2018 - 2nd International Conference Postgraduate School

level and sense of security, interpersonal and

supervisory relations tend to meet social needs,

increased responsibilities, challenging jobs and

growth is a motivator that tends to meet.

In general, new employees tend to focus their

attention on satisfying the lower level needs in their

first job, especially security. But once satisfied, they

will strive to meet higher levels of need such as

intensive needs, creativity and responsibility. There

are two factors that affect one's work in the

organization, that is the factor of satisfaction that has

a driving effect for job performance and morale and

job dissatisfaction factors that have a negative

influence.

Motivators have the effect of improving job

performance or job satisfaction. Maintenance factors

prevent the decline of morale even though these

factors can not motivate, but can lead to job

dissatisfaction or decrease work performance.

Improvements to maintenance factors will reduce or

eliminate job dissatisfaction but can not be used for

the source of job satisfaction. Based on this reason

we made the following prediction:

Hypothesis 1: work motivation is a significant

influence on employee performance

2.2 The Relationship between

Organizational Culture and

Employee Performance

Organizational culture is a system of shared

organizational meaning shared by its members that

distinguish an organization from others (Robbins,

2010). Furthermore, organizational culture is simply

defined as the way an organizational performs its

role or a set of shared beliefs, attitudes, norms and

behaviors that guide each of its members on those

aspects to make continuous improvement.

According to Robbins (2003) the process of forming

good performance is generated if interpersonal

communication is established so as to form a strong

internalization of organizational culture and

understood in accordance with the values of the

organization that can generate positive perceptions

among all levels of employees to influence

employee satisfaction in a climate that impacts on

performance improvement in employees.

According to Greenberg (2003) the work

performance outcome results from the function of a

particular job or activity over a certain period of

time. In some ways employee performance is very

necessary for the implementation of the programs

planned yag, because the plan that has been neatly

arranged if lacking employee performance would

not be done properly. Achievement of work is a

result of work achieved in implementing the tasks

assigned that is based on the ability, experience,

sincerity and time.

Employee performance of a company is not

limited to the willingness and ability of employees

to implement the programs of the company, but also

to put forward ideas that can improve the welfare of

both employees and companies. Performance

appraisal is the process through which the

organization evaluates or assesses employee

performance. If the performance appraisal is well

executed, orderly and correct, it can help improve

work motivation and also increase organizational

loyalty from employees.

Based on this reason we made the following

prediction:

Hypothesis 2: organizational culture has a

significant influence on employee performance.

3 METHOD

3.1 Conceptual Model Analysis

The conceptual framework below illustrates a

relationship between one concept and another of the

problem to be studied. This conceptual framework is

used to connect and explain a topic to be discussed.

Picture 3.1: Conceptual model analysis

There are two factors that influence a person's

work in the organization, namely the satisfaction

factor that has a driving effect on work performance

and work morale, as well as job dissatisfaction

factors that have a negative influence. Intrinsic

factors have the effect of increasing work

performance or job satisfaction. Whereas extrinsic

factors prevent the decline of working spirit.

Improvements to maintenance factors will reduce or

The Inﬂuence Of Work Motivation And Organizational Culture On Improving Employee Performance In Financial Division At Companies

In Energy Sector

eliminate job dissatisfaction but cannot be used as a

source of job satisfaction.

Organizational culture is a consciously

coordinated social identity consisting of two or more

people with relatively identified boundaries that

function sustainably to achieve a common set of

goals. Furthermore, organizational culture is a

system of organizational meaning or shared meaning

adopted by its members that distinguishes an

organization from others. While work achievement

is a result of work achieved by a person in carrying

out tasks that are charged to them based on skills,

experience, sincerity and time.

This study focuses on work motivation and

organizational culture to improve employee

performance with assumptions on the study of

human resource development, and with a

concentration of business and industry the role of

culture and motivation is easier to form according to

the needs of the organization today.

3.2 Data Collection and Respondents

For this study data is collected from a state company

engaged in energy located in Surabaya province east

Java. In 2017 based on report data, the financial and

market division was able to exceed the target set by

the company, that is 35.83% of the target set by the

company at 31%. This is a very good category to

leave out of the five divisions as only the financial

section is able to exceed the target. Data was

collected using a survey questionnaire directly

addressed to employees of the finance division. This

study refers to the Kerjcie and Morgan formulas to

determine the sample size. According to Krjecie and

Morgan formulations with (P = 0.5), (d = 5%), the

confidence level of 95% and (N = 40) then the

sample size (n) for this study was 36.

3.3 Measures

All variables are measured on a Likert response

scale ranging from 1 (strongly disagree) to 5

(strongly agree). Motivation in this study was

measured using 10 indicators of motivational

theory.. This scale summarizes two dimensions of

motivation, as a motivating factor and as a nurturing

factor. The motivational dimension as motivator

factor consists of 5 indicators and as maintenance

factor consists of 5 indicators. Alpha Cronbach scale

is pretty good (α = 0.78).

The organizational culture in this study was

measured using 12 indicators of organizational

culture theory developed by Susanto (2004). Among

them are indicators of leadership, innovation,

conflict tolerance, management support, rewards and

communication patterns. Alpha Cronbach in this

scale is (α = 0.91)

While measuring the performance appraisal uses

8 indicators of theory developed by Greenberg

(2003). Among them are indicators of quantity and

quality of work, knowledge of individuals, ideas and

ideas given, and spirit in carrying out the task. Alpha

Cronbach in this scale is (α = 0.77)

4 RESULTS AND DATA

ANALYSIS

Hyphotheses were tested by using multiple

regression analysis for each outcome variable.

Table 4.1: Partial test summary

Model t Sig.

1 ,940 ,354

2 3,750 0,001

3 3,094 0,004

Model 1: Constants

Model 2: Work motivation

Model 3: Organizational culture

Based on Table 4.1, it can be concluded that

the value of Sig. 0.001 < 0.05 so H0 is rejected

and H1 accepted. This shows that the partial

Motivation Work variable (X1) affects the

variable Work Achievement (Y). So, Hypothesis

1 is supported by this finding.

Based on Table 4.1, it can be concluded that

the value of Sig. 0.004 < 0.05 so that H0 is

rejected and H1 accepted. This shows that the

partial variable Organizational Culture (X2)

affects the variable Work Achievement (Y).

Then, Hypothesis 2 is supported by this finding.

Table 4.2: Summary of Multiple Regression Analyses

Model R

Square

Change

Std.

eror

1 .560a .314 .296 2.335

ICPS 2018 - 2nd International Conference Postgraduate School

a. Predictors: constant, work motivation,

organizational culture

b. Dependent Variable: employee achievement

Based on Table 4.2 knowing that the value of

multiple correlation coefficient (R), which is the

correlation between Work Motivation (X1) and

Organizational Culture (X2) is 0.560, it can be

concluded that the level of relationship between

variables is quite strong.

While the value of multiple determination

coefficient is 0, 314 or 31.4%. This value indicates

that 31.4% of Work Motivation (X1) and

Organizational Culture (X2) variables have an

effect on Work Achievement variable (Y) and the

rest, 68.6%, is influenced by other variables outside

of research.

5 DISCUSSION

Organizational culture began to concern

scientists throughout the 1950s, but only grew in

1980. In general, organizational culture is a

system of organizational meaning shared by its

members that distinguishes the organization from

others (Robbins, 2010). One of the factors

behind motivation is organizational culture.

Another factor that also has an influence on

motivation is the role of a manager (Perry,

2008).

Based on the data analysis undertaken, it can

be seen that the employee work motivation and

organizational culture either partially or

simultaneously have a significant influence on

the improvement of employee performance

within the company. This finding is supported by

previous research, which shows that work

motivation has a significant effect on employee

performance.

This relationship indicates that the higher

work motivation owned by the employee will

also increase the work performance of the

employee. This concept is supported in that there

are two factors that affect one's work in the

organization; that is the satisfaction factor that

has a driving effect on job performance and

morale and job dissatisfaction factors that have a

negative influence.

Another result of this research shows that

organizational culture has a significant effect on

the improvement of employee performance. This

is supported by a statement from Robbins (2010)

in which a good performance foundation process

is generated when interpersonal communication

exists to form a strong internalization of

organizational culture and is understood in

accordance with organizational values that can

lead to positive perceptions among all levels of

employees to influence the climate of

satisfaction for employees that impacts on

improving employee performance. This

conclusion is supported by previous research,

which states that organizational culture has a

significant effect on increasing employee

performance.

6 CONCLUSION

This study found that both the work motivation of

the individual employees and the organizational

culture of a company have a positive relationship

direction. This is because the higher value of

motivation and organizational culture will result in

increased work performance of the employees. In

this case the role of managers also plays an

important role because the ups and downs of

employee motivation will be directly related to the

leadership style of the manager concerned. Besides

that, organizational culture has a role as a driving

aspect that is able to improve motivation as well as

depending on how the company makes policy.

In addition, the role of managers in the company

is one of the factors that will determine the work

motivation of the employees they lead. The work

motivation of employees is influenced not only by

the individuals, but also by how well the manager is

leading. As good as any human resources owned by

the company, if it is not managed properly, sooner or

later the quality and commitment of the company

will decrease. However, employees are ordinary

people who have different needs. By giving more

attention to employees, there will be a sense of

respect in themselves so that it will make the

commitment to the company high and work

performance will be directly proportional. If an

employee feels comfortable and safe in a company,

the best potential that is owned without being asked

will surely come out by itself.

REFERENCES

Chen, Li Yueh, 2004. Examining The Effect of

The Inﬂuence Of Work Motivation And Organizational Culture On Improving Employee Performance In Financial Division At Companies

In Energy Sector

Organization Culture And Leadership

Behaviors On Organizational Commitment,

Job Satisfaction, And Job Performance At

Small And Middle-Sized Firma Of Taiwan.

Journal of American Academy of Business,

5(1/2), 432-438.

Curry, L.A., Brault, M.A., Linnander, E.L., McNatt,

Z., Brewster, A.L., Cherlin, E., Flieger,

S.P., Ting, H.H., Bradley, E.H. 2017.

Inﬂuencing Organisational Culture To

Improve Hospital Performance In Care Of

Patients With Acute Myocardial Infarction:

A Mixedmethods Intervention Study. BMJ

Quality and Safety.

Denison and Mishra. 1995. Toward A Theory Of

Organization Culture And Effectiveness.

Organization Science. Vol. 6, No. 2 (Mar. -

Apr., 1995), pp. 204-223

Greenberg, J and Robert A. B. 2003. Behaviour in

Organization. New Jersey: Prentice-Hall.

Kreitner, R. dan, Kinicki, A. (2005). Perilaku

Organisasi (Organizational Behavior).

Jakarta: Salemba Empat

Mathauer., I and Imhoﬀ, I. 2006. Health Worker

Motivation In Africa: The Role Of Non-

Fnancial Incentives And Human Resource

Management Tools. Human Resources for

Health 4: 24

Perry, J L., and Hondeghem, A. 2008. Motivation in

Public Management: The Call of Public

Service. Oxford: Oxford University Press.

Priyono, 2016. Metode Penelitian Kuantitatif.

Sidoarjo : Zifatama Publishing

Robbins, S.P dan Coulter, M. 2010. Manajemen

(Edisi Kesepuluh). Jakarta: Erlangga.

Robbins, S.P. 2003. Organization Behaviour. New

Jersey: Prentice-Hall International Inc.

Sekaran, U. 2016. Metode Penelitian Bisnis. Jakarta:

Salemba Empat

Serpa, S. 2016. An Overview of The Concept of

Organisational Culture. International

Business Management 10(1) : 51–61.

Sarwono, J. 2006. Metode Penelitian Kuantitatif dan

Kualitatif (Edisi Pertama). Yogyakarta:

Graha Ilmu

Sugiyono. 2010. Metode Penelitian Kuantitatif

Kualitatif dan R & D. Bandung: Alfabeta.

Susanto, A.B. 2004. Menjadi Super Company:

Melalui Budaya Organisasi yang Tangguh

dan Futuristik. Jakarta: Quantum Bisnis

dan Manajemen.

Torang, S. 2014. Organisasi dan Manajemen.

Bandung : Alfabeta

Wright, B.E., 2013. Public Service and Motivation:

Does Mission Matter?. University of North

Carolina. Public Administration Review