CITATION: Wahyudin, I., Hadjar, I., Yusnita, N., (2021). The Influence of Organizational Culture, Employee Empowerment
THE INFLUENCE OF ORGANIZATIONAL CULTURE, EMPLOYEE EMPOWERMENT AND JOB
SATISFACTION ON ORGANIZATIONAL
COMMITMENTS (Empirical study on employees of CV.
Tirta Usaha Bogor)
Isya Wahyudin
*, Ismu Hadjar, Nancy Yusnita
Pakuan University, Bogor, Indonesia
*corresponding author: [email protected]
Abstract:Organizational commitment is the willingness of someone who is in an organization to obey, respect and live the values set by the organization, and the main purpose of organizational commitment is to foster a loyal attitude to the organization. This study aims to empirically reveal the influence of organizational culture, employee empowerment and job satisfaction on organizational commitment with the object of employee research at CV. Tirta Usaha Bogor and a total sample of 140 respondents using path analysis. CV. Tirta Usaha Bogor is a distribution company for bottled water products with Aqua and Vit brands. The results show that organizational culture directly affects organizational commitment with a coefficient of 0.31, employee empowerment directly affects organizational commitment with a coefficient of 0.32, and job decision directly affects organizational commitment with a coefficient of 0.19. Commitment to the organization that occurs at CV. Tirta Usaha Bogor is currently strong enough, even with the conditions of organizational culture, empowerment and job satisfaction that are in the good enough category can create commitment to the organization that is good enough to good. If things related to organizational culture, employee empowerment and job satisfaction can be improved, it will create a strong commitment to the organization in each employee.
Keywords: Organizational culture, employee empowerment, job satisfaction, organizational commitment
http://dx.doi.org/10.21776/ub.agrise.2021.021.3.5 Received 16 March 2021 Accepted 20 July 2021 Available online 31 July 2021
BACKGROUND
This research is motivated by the results of a temporary survey on the problem of employee commitment to the organization at CV Tirta Usaha Bogor is still not good where the number of employees of 211 employees has resigned as many as 44 in other words indicating that as much as 21%
of organizational commitment that occurred in CV.
Tirta Usaha Bogor has problems, while the highest was in 2017, of the total employees who resigned, as many as 57% of them occurred in 2017 and the lowest was in 2018 with a percentage of 11%. Based on this phenomenon, research was carried out on organizational culture, employee empowerment and
job satisfaction in influencing commitment to the organization that occurred in CV. Tirta Usaha Bogor.
Organizational Commitment
Riggio (2000: 227) "Organizational commitment is a worker's feelings and attitudes about the entire work organization" means that organizational commitment is all the feelings and attitudes of employees towards everything related to the organization in which they work, including their job. Griffin (2010: 15) states that organizational commitment is an attitude that reflects the extent to which an individual knows and is tied to the
organization. Employees who feel more committed to the organization have habits to rely on, plan to stay longer in the organization and put more effort into their work. In measuring an attitude of organizational commitment, several measures were developed by experts on organizational commitment. The following will describe several measures of opinion according to experts. Robbins and Judge (2008: 101) classify organizational commitment into three separate indicators, namely Affective Commitment, Continuance Commitment, and Normative Commitment. The dimensions in this study refer to the opinion of Robbins and Judge (2008: 101) in measuring organizational commitment as follows affective commitment. In this dimension the writer used to measure the level of love of each employee to the company, sustainable commitment. In this dimension, the writer used to measure the willingness of each employee to stay in the company and their willingness to continue to join the company despite problems, and to solve problems together and normative commitment. In this dimension, it is used to measure the persistence of employees to remain loyal to the company in carrying out every work activity and also to maintain that the company is the best.
Organizational Culture
Mangkunegara (2005: 113) defines Organizational culture as a set of assumptions or belief systems, values and norms developed within the organization which serve as behavior guidelines for members to overcome problems of external adaptation and internal integration. Schein (in Muchlas, 2005: 531) argues that organizational culture is as a basic assumption, which is found or developed by a certain group to learn to solve group problems from external adaptation and internal integration that have worked well. Organizational culture refers to a system of shared meanings shared by all its members that distinguishes the organization from other organizations. The dimensions used to differentiate organizational culture, according to Robbins and Judge (2008:
256), organizational culture has several primary characteristics that collectively equally capturing the essence of organizational culture, namely: a.
Innovation and taking risks. The extent to which employees are encouraged to be innovative and dare to take risks. b. Attention to detail. The extent to which employees are expected to show care, analysis and attention to detail. c. Result orientation.
The extent to which management focuses on results rather than on the techniques and processes used to obtain those results. d. Orientation of people. The extent to which management decisions take into account the effect of the results on the people in the organization. e. Team orientation. The extent to
which work activities are organized in work teams, not individuals. f. Aggressiveness. The extent to which people are aggressive and competitive, not relaxed. g. Stability. The degree to which organizational activities emphasize the maintenance of status as opposed to growth or innovation. Each of these characteristics is in the weight from the lowest to the highest. Therefore, by assessing the company based on these eight characteristics, a combined picture of the organizational culture will be obtained.
Employee Empowerment
Wibowo (2012: 409) explains empowerment as a process to make people more empowered and more capable to solve their own problems by providing trust and authority so as to foster a sense of responsibility. Empowerment places workers responsible for what they do (Robbins, 2003: 19). Meanwhile, according to Greenberg and Baron (2003: 448), "Empowerment is a process where workers are given an increased amount of autonomy and flexibility in relation to their work". Khan (in Widodo, 2015: 203-20) offers an empowerment model that can be developed in an organization to ensure the success of the empowerment process in the organization, such as the image of the empowerment model, namely:
Desire. The first stage in the empowerment model is the desire of management to delegate and involve work. Trust. After there is a desire from management to empower, the next step is to build trust between management and employees. The existence of mutual trust among members of the organization creates favorable conditions for the sharing of information and suggestions for fear.
Confident, the next step after mutual trust is to generate employee confidence by respecting the abilities possessed by employees. Credibility, the fourth step is to maintain credibility with rewards and develop a work environment that encourages healthy competition so as to create an organization that has high performance. Accountability, the next stage in the empowerment process is the responsibility of employees to the given authority.
The dimensions in this study use the dimensions of employee empowerment according to Khan (in Widodo, 2015: 203) as follows: a. Desire. To measure the ability and willingness of management to involve employees in problems that occur in the company. b. Trust. To measure the ability between employees and management in building trust in the company. c. Confident. To measure the management's ability to motivate employees so that they build a spirit of self-confidence in carrying out all activities that occur in the company. d.
Credibility. To measure management's ability to develop a work environment that encourages the creation of competition for employees and a healthy
division. e. Accountability. To measure the ability of employees in carrying out their responsibilities in accordance with the tasks assigned by the company.
f. Communication. To measure the ability between management and employees in building positive communication so as to create a healthy work culture in the company.
Job Satisfaction
According to Richard, Robert, & Gordon (2012: 312) that job satisfaction is related to a person's feelings or attitudes about the job itself, salary, promotion or education opportunities, supervision, co-workers, workload and others. He continued his statement that satisfaction work is related to one's attitude about work, and there are several practical reasons that make job satisfaction an important concept for leaders. Another opinion comes from Luthans (2006: 243) which defines job satisfaction as an emotional state which is the result of evaluating one's work experience. As for the measurement, the dimensions of job satisfaction can be measured using the dimensions proposed by Hariandja (2002: 291) as follows: a. Salary. In this dimension, it is used to measure employee satisfaction with the salary or other income received by the employee with a comparison of the suitability of the work carried out by the employee. b. The work itself. In this dimension, it will measure the suitability of the work done by the employee with the ability and physical condition of the employee.
c. Co-workers. In this dimension, it will measure employee job satisfaction based on their work relationship with colleagues such as cohesiveness in helping to complete work. d. Boss. In this dimension, it will measure employee job satisfaction based on the superior's ability to become a leader in providing direction or counseling about problems that occur at work. e. Promotion. In this dimension, it will measure employee job satisfaction based on providing opportunities for promotion and also in terms of career advancement. f. Work environment.
This dimension measures employee job satisfaction based on the atmosphere in the work environment, whether it is conducive or not.
FRAMEWORK OF THINKING
A good model can explain between research variables. In the following, the writer will briefly describe the conceptual framework in this study as shown in the following figure
Picture 1. Framework of Thinking
Based on the image scheme, the framework of thought above can be explained in forming organizational commitment, organizational culture, employee empowerment and job satisfaction which are very important to influence the level of organizational commitment at CV. Tirta Usaha Bogor.
RESEARCH METHODOLOGY
In this study the authors used a quantitative approach where quantitative data were measured and objective statistics through scientific calculations derived from a sample of people or employees from CV Tirta Usaha Bogor who were asked to answer a number of questions about the survey to determine the frequency and percentage of their responses. As a statistical test tool using path analysis in knowing the direct, indirect and total effect of the independent variable on the dependent variable, with the following research hypothesis
1. Organizational culture has a positive effect onorganizational commitment.
2. Employee empowerment has a positive effect on organizational commitment.
3. Organizational culture has a positive effect on job satisfaction.
4. Employee empowerment has a positive effect on job satisfaction.
5. Job satisfaction has a positive effect on organizational commitment.
RESULT AND DISCUSSION
Based on the results of the analysis of the influence of organizational culture, employee empowerment and job satisfaction on organizational commitment, the following results are obtained 1. The results of the analysis on sub structure 1
show that organizational culture directly affects commitment to the organization with a direct influence coefficient value of 0.31, and the highest loading factor of organizational culture lies in the organizational indicators forming work performance with a loading factor value of 0.93 . This result is in line with research from Messner (2015), Innanlou and Ahn (2016), Zainab et al (2015) which states the influence of organizational culture on organizational commitment.
2. The results of the analysis on sub structure 1 show that the direct effect of employee empowerment on organizational commitment has a direct effect coefficient value of 0.32 and the highest loading factor value is on the indicator of management's desire to involve employees in organizational discussions with a loading factor value of 0.91. . The results of this study are in line with Zareket, Malek and Garios (2018) who state that employee Organizational
Culture
Employee Empowerment
Job Satisfaction
Organizational Commitment
empowerment affects organizational commitment.
3. The results of the analysis on sub structure 1 show that the direct effect of job satisfaction on organizational commitment has a direct effect coefficient value of 0.19 and the highest loading factor value is in the superior indicator as a motivator with a loading factor value of 0.92. These results are in line with research from Thabane, Redebe and Dhurup (2016) which states that job satisfaction has an effect on organizational commitment. The three results of the discussion are illustrated in Figure 1 below:
Figure 1. Structural Model 1
4. Based on the results of the analysis on sub- structure 2, it is known that the path coefficient ρx3x1 = 0.33 with tcount 5.15 and path coefficient ρx3x2 = 0.23 with a tcount value of 2.8. The results of the overall path coefficient analysis show that all path analysis is significant with a significance level of 0.05 n = 140 (df = n-2) with the following details:
ρx3x1 = 0.33 tcount 5.15> t table 1.656 and ρx3x2 = 0.23 tcount 2.87> t table 1.656. The results of this study are in line with Janicijefic, Nikcevic and Vasic (2018) and Owusu (2016), that organizational culture and employee empowerment have an effect on job satisfaction. This is illustrated in Figure 2 below
Figure 2. Structural Model 2
5. Based on the results of the analysis on sub- structures 1 and 2, the overall effect image is obtained as follows:
Figure 3. Structural Model 3
SUGGESTION
Based on the results of the analysis, several suggestions were made to CV. Tirta Usaha Bogor in building organizational commitment based on organizational culture, employee empowerment and job satisfaction as follows:
1. Currently the organizational culture that occurs in CV. Tirta Usaha Bogor based on the respondents' responses is still in the quite good category. The highest dimension is in the progressive dimension, while the other dimensions are generally categorized as quite good, based on the results of the analysis it is
suggested that all dimensions related to organizational culture should continue to be improved so that it can increase job satisfaction and form a higher commitment to the organization than employees.
2. Currently, the empowerment of employees carried out by CV. Tirta Usaha Bogor is still in the good enough category in the minds of employees, so that it can affect their job satisfaction in forming a commitment to the organization. So it is suggested, if every indicator related to employee empowerment can continue to be improved in accordance with employee expectations, it will form job satisfaction that will impact employee commitment to the organization.
3. Job satisfaction in all aspects studied, employees still find dissatisfaction with their work, this can be overcome by placing employees according to their competence and physical strength so that employee job satisfaction with the work assigned to them can be achieved, so that commitment to the organization of each employee will be achieved according to organizational expectations.
4. Commitment to the current organization that occurs in CV. Tirta Usaha Bogor is already strong enough, even with the conditions of organizational culture, employee empowerment and job satisfaction which are in the good enough category can create good enough to good organizational commitment. If everything related to organizational culture, employee empowerment and job satisfaction can be improved, it will create a strong commitment to the organization in every employee.
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