A CASE OF PT.PERTAMINA
By
Muhammad Raja Akbar Fakhrulrozi Hasibuan 13112037
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION
FACULTY OF BUSINESS ADMINISTRATION AND HUMANITIES
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
August 2016
Revision after the Thesis Defence on 29 July 2016
Muhammad Raja Akbar Fakhrulrozi Hasibuan STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Muhammad Raja Akbar Fakhrulrozi Hasibuan
____________________________________________
Student Date
Approved by:
Fiter Abadi, MBA
____________________________________________
Thesis Advisor Date
Dr.rer.nat. Linus Pasasa
____________________________________________
Thesis Co-Advisor Date
Eric Jos Nasution, MBA, MA, Ph.D
____________________________________________
Dean Date
Muhammad Raja Akbar Fakhrulrozi Hasibuan ABSTRACT
THE EFFECT OF CORPORATE CULTURE TOWRDS EMPLOYEE PERFORMANCE:
A CASE OF PT. PERTAMINA
By
Muhammad Raja Akbar Fakhrulrozi Hasibuan Fiter Abadi, MBA, Advisor
Dr.rer.nat. Linus Pasasa, Co-Advisor
SWISS GERMAN UNIVERISTY
The main purpose of this research study is to analyse the significance effect of Corporate Culture in relation with Employee Performance at PT. Pertamina (Persero).
The research study is conducted on an Indonesian oil and gas company. The study is based on quantitative data of 100 respondents from employee of PT. Pertamina (Persero). It utilises questionnaires, surveys and interview to collect the data and uses the SPSS and AMOS software’s for statistical analysis. The statistical method and analytical tool used is with the Structural Equation Modelling (SEM) to verify reliability and validity to the overall model fit and to estimate the structural parameters which are the relationships between variables in the constructed structural model.
The conclusion entails that corporate culture has a significant effect on Employee performance.
The implication for PT. Pertamina (Persero) is to consider these factors to provide higher employee performance.
Keywords: Corporate Culture, Employee Performance.
Muhammad Raja Akbar Fakhrulrozi Hasibuan
© Copyright 2016
By Muhammad Raja Akbar Fakhrulrozi Hasibuan All rights reserved
Muhammad Raja Akbar Fakhrulrozi Hasibuan DEDICATION
I dedicate this works for my parents Drs. Sjahril Rachmat Atas MM & Dra. Rochbani Wiliyani, my future Ainurrahma Dwi Saraswati, Thank you for all the support.
Muhammad Raja Akbar Fakhrulrozi Hasibuan ACKNOWLEDGEMENTS
First of all the author would like to thank Allah SWT for giving me the blessing of knowledge, strength, and opportunity to do this research and make it happened. Thank you for giving me the best person to support me in doing this research:
Author’s parents Mr. Drs Sjahril Rachmad Atas, MM & Mrs. Dra Rochbani Wilayani whom keep supporting the author who from the first until the end of the thesis writing, always pray for the author can finish the thesis. Especially for the authors father that really help during this thesis writing.
And to Ainurrahma Dwi Saraswati the women I love, who always supporting from the first until the end of the thesis writing, give the author motivation in during the upside down situation during the thesis writing. She makes the author always self- reflect about what happened if this thesis writing not finishes due the time. Thank you for anything you do to me.
The author very thankful to the author thesis advisor Mr. Fiter Abadi,MBA who has supported me in doing my thesis writing, Without his patience, help and guidance this thesis would not have been finished. And the author wants to say thank you to the author thesis co-advisor Dr. Rer.nat Linus Pasasa who supported the author in compiling the statistical analysis of this study.
The author wants say thank you to Mrs. Humaina, Mrs. Fimelia, Mr. Sumanto and Miss Nadia from the corporate department that have been help, and very supportive to the author for gaining data within the company.
Last the author want say thank you to all my friends in International business class that have been support the author in doing thesis making especially for Arya that help the author in using AMOS program for the data analysis, Nafiz Kamil Fauzi and Leonard Batubara whom give the author encouragement to finish the thesis. Thank you so much guys for all the support.
Muhammad Raja Akbar Fakhrulrozi Hasibuan TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
LIST OF FIGURES ... 13
LIST OF TABLES ... 14
CHAPTER 1 – INTRODUCTION ... 16
1.1 Background ... 16
1.2 Objectives ... 21
1.3 Research Problem ... 21
1.4 Research Question ... 22
1.5 Scope and Limitation ... 22
1.5.1 Scope ... 22
1.5.2 Limitation ... 23
1.6 Significance Study ... 23
1.7 Data Analyses ... 23
1.8 Hypothesis ... 24
1.9 Thesis Structure ... 24
1.9.1 CHAPTER 1: Introduction ... 24
Muhammad Raja Akbar Fakhrulrozi Hasibuan
1.9.3 CHAPTER 3: Methodology ... 24
1.9.4 CHAPTER 4: Results, Discussion and Analysis ... 24
1.9.5 CHAPTER 5: Conclusion and Recommendation ... 25
CHAPTER 2 - LITERATURE REVIEW ... 26
2.1 Framework of thinking ... 26
2.2 Human Resource Management ... 27
2.3 Corporate Culture ... 28
2.3.1 Artefacts ... 32
2.3.2 Espoused Values ... 33
2.3.3 Basic Underlying Assumptions ... 34
2.3.4 Employee Engagement ... 35
2.3.4.1 Theme-o-meter Survey ... 35
2.4 Employee Performance ... 35
2.4.1 Timelines ... 37
2.4.2 Quality of Work ... 37
2.4.3 Quantity of Work ... 37
2.4.4 Need for Supervision ... 38
2.4.5 Interpersonal Impact ... 38
2.5 Previous Studies ... 38
CHAPTER 3 – RESEARCH METHODS ... 41
3.1 Research Process ... 41
3.2 Type of Study ... 41
3.3 Type of Data ... 42
Muhammad Raja Akbar Fakhrulrozi Hasibuan
3.5 Research Methodology ... 44
3.5.1 Research Model ... 44
3.5.2 Research Instrument ... 45
3.6 Question Design and Operational Variables ... 45
3.6.1 Question Design ... 45
3.6.2 Operational Variables ... 46
3.7 Validity and Reliability ... 51
3.7.1 Validity... 51
3.7.2 Reliability ... 52
3.8 Method of Analysis ... 54
3.8.1 Descriptive Statistic ... 54
3.8.2 Structural Equation Model (SEM) AMOS ... 55
3.8.2.1 Method of SEM ... 56
3.8.2.2 Goodness of Fit Criteria ... 56
CHAPTER 4 – RESULTS AND DISCUSSIONS ... 58
4.1 Company Background ... 58
4.1.1 History of PT. Pertamina (Persero) ... 59
4.1.2 Vision and Mission of PT. Pertamina (Persero) Company ... 60
4.1.3 Company’s Goals ... 60
4.1.4 PT. Pertamina (Persero) core value ... 61
4.1.5 Business, Products, and Services... 61
4.1.5.1 Products and Services Produced ... 63 4.1.5.2 Product and Service based on Business Line and Market Target
65
Muhammad Raja Akbar Fakhrulrozi Hasibuan
4.2 Respondent Profile ... 67
4.2.1 Gender ... 67
4.2.2 Age (Year) ... 68
4.2.3 Work Period ... 68
4.2.4 Education Level ... 69
4.2.5 Position Level ... 70
4.3 Data Validity and Reliability for Respondent ... 70
4.3.1 Validity and Reliability Test (Pre-test) ... 71
4.3.1.1 Validity and Reliability Test (Pre-test) of Artefacts ... 71
4.3.1.2 Validity and Reliability Test (Pre-test) of Espoused Values ... 72
4.3.1.3 Validity and Reliability Test (Pre-test) of Timelines ... 73
4.3.1.4 Validity and Reliability Test (Pre-test) of Quality of Work... 74
4.3.1.5 Validity and Reliability Test (Pre-test) of Quantity of Work ... 75
4.3.1.6 Validity and Reliability Test (Pre-test) of Need of Supervision . 76 4.3.1.7 Validity and Reliability Test (Pre-test) of Interpersonal Impact ... 77
4.3.2 Validity and Reliability Test (Post-Test) ... 78
4.3.2.1 Validity and Reliability Test (Post-Test) of Artefacts... 78
4.3.2.2 Validity and Reliability Test (Post-Test) of Espoused Values ... 79
4.3.2.3 Validity and Reliability Test (Post-Test) of Timelines ... 80
4.3.2.4 Validity and Reliability Test (Post-Test) of Quality of Work ... 81
4.3.2.5 Validity and Reliability Test (Post-Test) of Quantity of Work ... 82
4.3.2.6 Validity and Reliability Test (Post-Test) of Interpersonal Impact ... 83
4.4 Descriptive Analysis... 84
Muhammad Raja Akbar Fakhrulrozi Hasibuan
4.5.1 Structural Equation Modeling (SEM) Analysis ... 85
4.5.2 Goodness of Fit Criteria ... 86
4.5.3 Significance Level of the Data ... 87
4.5.4 Results of the Modified SEM ... 88
4.5.4.1 Corporate Culture to Employee Performance ... 88
4.5.4.2 Corporate Culture towards Parameter ... 89
4.5.4.2.1 Artefacts ... Error! Bookmark not defined. 4.5.4.2.2 Espoused Values ... 89
4.5.4.3 Employee Performance towards Parameters ... 89
4.5.4.3.1 Timelines ... 89
4.5.4.3.2 Quality of Work ... 89
4.5.4.3.3 Quantity of Work ... 89
4.5.4.3.4 Interpersonal Impact ... 89
4.5.5 Research Questions and Hypothesis Testing ... 90
4.5.5.1 Hypothesis Testing and Analysis ... 90
CHAPTER 5 – CONCLUSIONS AND RECCOMENDATIONS ... 91
5.1 Conclusions ... 91
5.2 Recommendations... 92
GLOSSARY ... 93
REFERENCES ... 98
APPENDICES ... 101
APPENDIX-1 Pearson Correlation Coefficient Table ... 101
APPENDIX-2 Regression Weight Table ... 102
Muhammad Raja Akbar Fakhrulrozi Hasibuan
APPENDIX-4 Questionnaire ... 105
APPENDIX-5 Online Questionnaire for Employees on Google Drive ... 116
APPENDIX- 6 Respondent’s Raw Data ... 128
CURRICULUM VITAE ... 129
