The Role of Work Motivation in Mediating the Effect of Organizational Culture on Employee Performance at PTPN 4 Regional II Medan
Keywords:
Organizational Culture, Work Motivation, Employee PerformanceAbstract
This study aims to analyze the role of work motivation in mediating the influence of organizational culture on employee performance at PTPN IV Regional II Medan. This study employs a quantitative approach using an associative research design. The study population consists of all managerial-level employees at the PTPN IV Regional II Medan Regional Office, totaling 129 individuals, with the entire population serving as the sample. The data used are primary data collected via a questionnaire, which were then analyzed using the Partial Least Squares (PLS) method with the assistance of SmartPLS. The results of the outer model testing indicate that all indicators meet the criteria for validity and reliability, with outer loadings above 0.70, Cronbach’s Alpha above 0.70, Composite Reliability above 0.70, and AVE above 0.50. The results of the inner model test indicate that organizational culture has a positive and significant effect on employee performance with a coefficient of 0.175, a t-statistic of 2.185, and a p-value of 0.029. Organizational culture also has a positive and significant effect on work motivation with a coefficient of 0.429, a t-statistic of 3.940, and a p-value of 0.000. Furthermore, work motivation has a positive and significant effect on employee performance with a coefficient of 0.801, a t-statistic of 9.273, and a p-value of 0.000. The results of the indirect effect test indicate that work motivation mediates the effect of organizational culture on employee performance, with a coefficient of 0.343, a t-statistic of 3.522, and a p-value of 0.000. Thus, improved employee performance at PTPN IV Regional II Medan is not only directly influenced by organizational culture but is also reinforced through work motivation. This study recommends that the company strengthen its risk management culture, clarify career paths, improve the reward system, and enhance leadership training and work coordination.
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