An Organizational Approach to Employee Performance

Abstract

This study aims to analyze the effect of employee welfare, work environment, and social support on employee performance through organizational commitment at PT PLN (Persero) Unit Pelaksana Pengatur Distribusi (UP2D) North Sumatra. This research employs a quantitative approach using a survey method. Data were collected by distributing questionnaires to 117 employees as research respondents. The data analysis technique used was Structural Equation Modeling (SEM) with the Partial Least Square (PLS) approach. The results indicate that employee welfare and work environment have a positive and significant effect on employee performance. In addition, employee welfare and social support have a positive and significant effect on organizational commitment. Organizational commitment is proven to have a positive and significant effect on employee performance. However, social support does not have a significant direct effect on employee performance, and the work environment does not have a significant effect on organizational commitment. Furthermore, the indirect effect analysis reveals that social support and employee welfare have a significant effect on employee performance through organizational commitment. In contrast, the work environment does not have a significant effect on employee performance through organizational commitment. These findings indicate that organizational commitment plays an important role as an intervening variable in improving employee performance, particularly through enhancing employee welfare and social support.