The Role of the Work Environment in Mediating Competence on Work Performance at the Regional Finance and Assets Agency of North Sumatra Province

Abstract

This study aims to analyze the influence of organizational culture on employee integrity with compensation as an intervening variable in the Regional Finance and Assets Agency of North Sumatra Province. The research approach used is quantitative with a survey method through the distribution of questionnaires to employees as respondents. The sample was determined by purposive sampling technique to ensure that the data obtained was relevant to the research objectives with a total of 80 respondents. The collected data was analyzed using path analysis techniques to determine the direct and indirect influence between variables. The results of the study show that organizational culture, both directly and indirectly, has a positive and significant effect on employee integrity and through compensation. In addition, compensation has a positive and significant effect on employee integrity. Thus, compensation has been shown to mediate the influence of organizational culture on employee integrity. The findings of this study are expected to be an input for management in improving employee integrity through strengthening work ethic, implementing a positive organizational culture, and providing fair and decent compensation.