The Effect of Digital Culture on Employee Performance at Telkom Pension Fund
Alya Zahrantiara Khansa1*, Ary Ferdian1
1 Management Business Telecommunication and Informatics, Telkom University, Bandung, Indonesia
*Corresponding Author: [email protected]
Accepted: 15 August 2021 | Published: 1 September 2021
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Abstract: Employee performance is something that needs to be improved by the company and employees, this is done in order to excel in competition. One of the factors that can improve the performance of employees is the digital culture. The purpose of this research is to find out the application of digital culture in Telkom Pension Fund, the performance of Employees of Telkom Pension Fund, how big is the influence of digital culture on the performance of Telkom Pension Fund employees. This study used a quantitative method with descriptive analysis techniques and simple linear regression analysis. The technique used for sampling is saturated samples, that is the entire population of Telkom Pension Fund as many as 76 people who are respondents to collect data through questionnaires. Based on the results of the research that has been done, the variables of digital culture and employee performance are at a "High" level.
In this research, the coefficient of determination (R square) was 0.522 or 52.2%. This shows that the influence of digital culture variables on employee performance variables in this research was 52.2%.
Keywords: Digital Culture, Organization Culture, Employee Performance
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1. Introduction
The world of work will change along with the development of information and technology so that companies have to be able to adapt to compete and survive in the future (Sutriyanto, 2018).
In the process of adapting to the development of information and technology, human resources become an important asset for the company. Human resources need to be professionally managed to have a balance between the company's capabilities and the needs of employees and this balance are the key so to productively develop the company (Yusuf, 2018). Companies with quality human resources can optimally carry out their business activities which support the achievement of the target level of performance.
Some factors affect employee performance. Sedarmayanti (2017) stated that one of the factors affecting employee performance is the organizational culture. In this digitalization era, business competition is increasingly competitive which encourages companies to build and develop a positive and competitive organizational culture (Priansa and Sumardjo, 2017). Organizational culture has a new DNA representation, namely digital culture (Levin, 2018). Companies have to develop a digital culture in their companies because digital culture can attract talent, companies are at risk of failure if ignoring organizational culture, and digital culture can encourage employees to deliver results faster (Hemerling et al., 2018).
Companies need to develop a digital culture that supports the digitalization process or an organizational culture that supports the digital transformation process (Martínez-Caro et al., 2020). The digital transformation is not only limited to the use of Information Technology (IT) in the company, but also all activities and individuals within the company. A study by Microsoft (2018) revealed that companies with a strong digital culture will have more employees who feel productive. It is due to the use of technology that makes work more effective and efficient. The implementation of the appropriate digital culture in the company will lead to a higher quality of work, happier employees, and better performance (Microsoft, 2018).
Telkom Pension Fund is a legal entity managing Program Manfaat Pasti that promises continuous pension benefits for PT Telkom employees. The performance of Telkom Pension Fund employees can be seen from the results of regular assessments carried out by the company. Telkom Pension Fund has used performance appraisal standards of Key Performance Index (KPI) which is adjusted to the needs of the company.
Based on the results of the individual performance recapitulation of the Telkom Pension Fund, the employee performance appraisal of this legal entity was in the P2 category (very good) of 100% in 2017. In 2018, it was in the P2 category (very good) decreasing to 8% and in the P3 category (good) increasing to 92%. Then, in 2019, it was in the P2 (very good) category, decreasing to 3%, and in the P3 (good) category, increasing to 97%. It indicates that the performance of employees of the Telkom Pension Fund in 2017-2019 is fluctuating and tends to decline in 2019. It can be seen from the decrease in the number of employees in the P2 category (very good) and the increase in employees in the P3 category (good).
The Telkom Pension Fund is one of the companies that supports the digital transformation process by adapting the digital culture values . This can be seen from the role of technology that supports employee activities in carrying out their duties. The Telkom Pension Fund used various information systems including the Telkom Portal which can be used for creating official note and HR management applications, official websites, creating agenda letters for the secretariat called AMANAT, and online administration called CERDAS. Besides, the Telkom Pension Fund has also implemented online attendance in the Diarium which can be accessed by employees anywhere and anytime. To improve services to participants, the Telkom Pension Fund also has a dashboard called SIMPUL. They prove that the Telkom Pension Fund has adopted the values of digital culture, both in the form of the use of technology and information systems in decision making to providing quality services.
A survey by the Telkom Pension Fund to find out how much digital culture has been adapted and the company's readiness to face the digital era revealed that the level of the Telkom Pension Fund's digital culture index is 77%. It explains that the digital culture implemented by the Telkom Pension Fund is relatively good but not optimal. It can be seen that digital culture and employee performance are interrelated. Therefore, this study focuses on "The Effect of Digital Culture on Employee Performance at Telkom Pension Fund".
2. Literature Review
2.1 Organizational Culture
Organizational culture is the result of the process of combining the styles of a culture or individual behavior into a new philosophy and norms to have energy and group pride in dealing with certain issues or goals (Edison et al., 2016). Besides, organizational culture is defined as
a perception of members of the organization which then influences the way they work and behave so that they can distinguish the organization from others (Busro, 2018).
Based on the explanations above, it can be concluded that organizational culture is the values, beliefs, norms, or assumptions adopted by an organization as a guide for behavior in the organization which distinguishes the organization from others.
2.2 Digital Culture
Digital culture is a value, belief, norm, and basic assumption rooted in an organization that characterizes how the organization encourages and supports its employees to use technology to get work done in the most effective way (Microsoft, 2018). Digital culture is an organizational culture that encourages the use and development of digital technology to improve business performance and achieve company success (Rudito & Sinaga, 2017).
Based on the explanation above, it can be concluded that digital culture is a value, belief, norm, and basic assumption that guides an organization in encouraging the use and development of digital technology to get work done effectively for achieving success.
2.3 Employee Performance
Employee performance is an individuals’ achievement in accordance with his duties and roles in a certain period, which is associated with a measure of the value of the organization where the individual works (Umam, 2018). Further, employee performance refers to the employee’s achievement in working based on the work requirements (Bangun, 2012).
Based on the explanations above, it can be concluded that employee performance is the employee’s achievement in carrying out their duties and roles which are measured within a certain period based on predetermined criteria.
3. Methodology
This study used a quantitative method with descriptive analysis techniques. The data were analyzed using simple linear regression analysis. It used a saturated sampling technique involving a total of 76 employees of the Telkom Pension Fund as respondents for data collection using questionnaires.
4. Discussion & Conclusion
4.1 Discussion
Based on the results of the questionnaires distributed to 76 employees of the Telkom Pension Fund, the digital-first mindset dimension has the highest response with a percentage of 86.3%.
It means that the employee of Telkom Pension Fund needs an information system that can support them in carrying out their work. Telkom Pension Fund has supported it by establishing various information systems that can be used by all Telkom Pension Fund employees according to their needs as described in the background of the study.
Concerning employee performance, the quality dimension has the highest percentage of 84.0%.
It explains that the employee of Telkom Pension Fund has a good awareness of the importance of quality working.
The classical assumption test used in this study consisted of a normality test, a heteroscedasticity test, and a linearity test. The normality test using the Kolmogorov-Smirnov
test showed a significance value of 0.094 > 0.05. Therefore, it can be said that the data were normally distributed. The heteroscedasticity test using the Glesjer test showed a significance value of the digital culture variable of 0.058 > 0.05 meaning that there is no heteroscedasticity.
This study also used simple linear regression analysis as it only uses one independent variable and one dependent variable. Table 1 below shows the results of simple linear regression analysis.
Table 1: Simple Linear Regression Analysis
Coefficientsa
Model Unstandardized
Coefficients
Standardized Coefficients
t Sig.
B Std. Error Beta
(Constant) 4.310 2.872 1.501 .138
Digital Culture
.481 .053 .723 8.992 .000
a. Dependent Variable: Employee Performance
Based on Table 1 above, it can be concluded that:
1) A constant value of 4.310 means that if digital culture as an independent variable (X) is zero, then the dependent variable (Y) of employee performance will have a value of 4.310.
2) The regression coefficient of digital culture is 0.481 which is positive, meaning that if digital culture as an independent variable (X) increases by one unit, then the dependent variable (Y) of employee performance will increase by 0.481.
Table 2: Coefficient of Determination
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .723a .522 .516 2.516
a. Predictors: (Constant), Digital Culture
Based on Table 2 above, the R-value is 0.723, while the R square is 0.522 or 52.2%. It shows that the value of the coefficient of determination reaches 52.2% indicating that the independent variable (X) of digital culture influences the dependent variable (Y) of employee performance by 52.2%, while the remaining 47.8% of employee performance at Telkom Pension Fund is influenced by other variables outside this study. This study also used the T-test to check whether digital culture affects employee performance. Table 3 presents the results of the T- test.
Table 3: T-test
Coefficientsa Model Unstandardized
Coefficients
Standardized Coefficients
t Sig.
B Std. Error Beta
(Constant) 4.310 2.872 1.501 .138
Digital Culture
.481 .053 .723 8.992 .000
a. Dependent Variable: Employee Performance
Based on Table 3, it can be concluded that t count (8.992) is higher than t table (1.99254) meaning that the alternative hypothesis or H1 is accepted in which digital culture partially has a significant effect on the employee performance of Telkom Pension Fund.
4.2 Conclusion
Based on the results and discussion above, it can be concluded that digital culture and employee performance at Telkom Pension Fund are in the very high category (83.3%). Moreover, digital culture has a positive effect on the employee performance of Telkom Pension Fund. Then, the relationship between digital culture and employee performance is 52.2%, while 47.8% of employee performance at the Telkom Pension Fund is influenced by other variables outside this study. Future studies are expected to be able to develop the study in a wider scope by using other variables outside this study or adding a different dependent variable. Further, they can use other methods of analysis such as multiple linear regression analysis. It is expected that this study can provide input or reference for academic practitioners and companies
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