THE
INFLUENCE OF ORGANIZATIONAL CULTURE ON TURNOVER THROUGH THE QUALITY OF WORK
LIFE
Saripudin*, Musa Hubeis, Nancy
Yusnita
Faculty
of Economics, Universitas Pakuan,
West Java, Indonesia
Email: [email protected]*
|
ARTICLE INFO |
ABSTRACT |
|
Date received: December 10, 2022 Revision date: January 5, 2023 Date received: January 26, 2023 |
Quality of Work Life
(QWL) is an organization's effort to control behavior and maintain the work
performance of its employees so that it continues to improve continuously.
This study aims to determine the influence of organizational culture,
leadership serve and personality on turnover with mediated by the quality of
work life. Example 134 respondents. PT Nipindo Primatama Group North Jakarta City. Research Data were
analyzed using SEM PLS analysis techniques with the help of SmartPLS program. The results of this study showed that
organizational culture, leadership work positive and significant to the
quality of work life, the better the organizational culture, leadership serve
and personality then the better the quality of employee work life. The
results also showed that the leadership serve, personality and quality of
working life affect negatively on turnover, while organizational culture
directly does not affect on turnover. Quality of
employee work life, while a good organizational culture cannot always improve
the quality of employee work life, organizational culture can degrade the
high quality of employee work life. |
|
Keywords: organizational culture, serving leadership,
personality, quality of working life, turnover |
INTRODUCTION
The
initial symptoms of Turnover are usually marked by a desire to move, which is
commonly called Turnover intentions. Turnover intention is the tendency or
intention of employees to stop working from their job (Melky, 2015). The
desire to leave an organization is generally preceded by employee intentions
which are triggered, among others, by employee dissatisfaction with work and low
employee commitment to attach themselves to the organization (Jimad, 2011). Turnoverr intention is characterized by various things
related to employee behavior, namely: increased absenteeism, lazy work, and
increased courage to violate company rules (Fajrin, 2012). The
problem of Intention to Leave employees of coal mining companies in Indonesia
is slightly different from other industries, if employees/operators feel
uncomfortable they usually just leave. This greatly affects the performance of
coal production; the high employee turnover rate affects the ratio of employee
needs and ultimately disrupts the achievement of annual National Coal
production.
Intention
to Leave occurs in the phenomenon of high percent employee turnover that occurs
at PT. Nipindo Primatama
Group is when an operator/employee feels that their work life and professional
life are no longer balanced, they rarely submit resignation. I often leave work
right away or go on leave (work roster), but when this happens at a coal mining
company in North Jakarta, this is very worrying. With so many
operators/employees who have the skills and competence to resign, it can
threaten the performance of achieving production, while the productivity of
tools without the availability of man power will cause UA and EU to be low and
production cannot be achieved.
Turnover
is influenced by several factors, namely organizational culture, servant
leadership and personality. Organizational culture or Organizational culture is
one of the specific results of a strong organizational culture, namely the
decrease in employee turnover rates. The harmony of goals achieved between
employees and the organization through culture will build an organizational
commitment in employees. Servant Leadership or Servant Leadership can be an
alternative to leadership in times of organizational change proving that the
construct of Servant Leadership is uni-dimensionality,
which means that this construct is a complete construct of the most important
serving leadership construct stated that Servant Leadership is based on primary
responsibility for service to subordinates by placing the interests of
subordinates above the interests of the leader.
Organizational
culture is now being discussed everywhere, both among experts and among
business practitioners and executives, because many of these organizational
cultures have succeeded in making an organization more stable, more advanced,
and more anticipative of environmental changes.
A
strong and rooted organizational culture will be able to make a significant
contribution to members of the organization in terms of a clear and
straightforward understanding of a problem being resolved. Culture has a
significant influence on the attitudes and behavior of organizational members.
Much evidence illustrates that the success of an organization is due to its
strong culture which makes the organization more confident and ultimately more
effective. In the era of globalization which is very full of changes, which
changes are often so fast and very difficult to predict but have a very large
impact on the future of the organization, the presence of a flexible organizational
culture is becoming increasingly relevant. Strategies in anticipating changes
to be made by an organization also need to consider the cultural aspects that
have existed so far, whether the strategies designed match the existing values,
or are the existing values actually counterproductive for the organization in
its journey? forward. Managers, especially those at the top level, must be
aware of how important it is to understand the culture of the organization
because it has such a large influence on the behavior of members.
Organizational culture can also be used as a concept in developing strategies
for change or development of the organization they lead.
Organizational
culture especially at PT. Nipindo Primatama
Group plays an important role, because it will make the company flexible,
flexible and elastic, the work culture will be very perfect if it is combined
with a good system and commitment from all lines.
In this study, intention to leave refers to employees'
voluntary intention to leave the organization (Berry 2008)
(Artiningrum & Satrya, 2016). Intention
to leave is the strongest precussor of actual turnover
(Tett & Meyer, 1993). According
to Halawi (2014).
“Stimuli and Effect of the Intention to Leave the Organization”. European
Scientific Journal June 2014 /SPECIAL/edition vol.1 ISSN: 1857–7881 (Print)
e-ISSN 1857-7431. Intention to leave is defined as the degree to which a member
thinks of leaving a relationship with the community or current employer.
Intention to leave refers to the employee's 'conscious and intentional
intention to leave the organization'. Dimensions: 1) Thinking of quitting; 2)
Planning to stay or leave; 3) Looking for alternative careers; 4) The desire to
leave the current career.
Intention
to leave is defined as an employee's plan for intention to leave the current
job and look onwards to find another job in the near future The
process of intention to leave: 1. Think about quitting. 2. Actively look for a
new job. 3. Think of changing my job. Intention to leave is defined as an
employee's plan of intention to leave the current job and looking forward to
find another job in the near future. I.
The
phenomenon of employee turnover (turnover) is a tendency for employees who have
competence (skills) not to feel QWL or work-life balance (WLB) from the company
where they work. Such a turnover phenomenon also occurs in other mining
companies which are not the object of this research. Since 2018-2020, at least
the rate of employees resigning at PT. Nipindo Primatama Group has achieved an average rate of 12 percent
in three years. This condition tends to fluctuate increasing from year to year.
This
phenomenon clearly shows that the company has low WLB or QWL, especially if WLB
or QWL is interpreted as a strong desire to remain a company employee, a desire
to show optimal effort for the benefit of the company, and a strong belief in
accepting the values and company goals.
Another
thing is that competent employees (skills) are employees who must be looked
after, because they have special competence in the field of mining services
business and have selling points for the same type of company, so it's easy to
move between companies as they please, survey results are limited what the site
does https://www.ekrut.com revealed
that 70% of mining workers feel that their workload is more than their working
time. This condition, if it drags on, instead of motivating workers, it
actually makes them withdraw from the company. Therefore, companies need to
share the work of their employees equally, so that productivity increases
without burdening one particular person or division. Periodic surveys of
employees' opinions of work can be a good preventative measure.
About
30% of employees will stay on the conditions and job, if there is a higher
salary offer elsewhere. Based on temporary observations, that currently the
average high turnover rate is the highest of the standard set by the company,
thus affecting the ratio of competent operators which is quite a large
deviation from the needs of operators in the mine. Other problems currently
faced by companies apart from Turnover are organizational culture, service
leadership and personality towards Intention to Leave through QWL. Quality of
work life has an important role, especially in one's performance at work.
Based
on the literature from several previous studies, another factor that is thought
to have a relationship with Intention to Leave through QWL is organizational
culture, namely the understanding of important values and norms in the
organization that direct the behavior of members of the organization. Serving
Leadership is the behavior of a leader who prioritizes service, namely service
that arises from a person's desire to perform service to others, which aims to
enable the individual served to grow, be healthy, be independent (Autonomous),
and have service spirit, and Personality, which is a relatively stable set of
characteristics, inclinations, and temperaments (individuals) that have been
significantly shaped by inheritance and by social, cultural, and work
environment factors.
Organizational
culture is the result of the process of fusing the cultural and behavioral styles
of each individual previously brought into a new set of norms and philosophies,
which have energy and group pride in dealing with certain things and goals (Afandi et al., 2021).
QWL
is defined as an engagement-based culture. The QWL culture engenders very high
mutual commitment among individuals towards organizational goals, as well as
between organizations and individual development needs (Maesaroh, 2017).
Quality of work life can be seen as goals, processes and organizational
philosophy. Quality of work life is seen as a goal, namely QWL refers to the
creation of increased work, employee involvement, satisfaction of the people
involved in the organization and organizational effectiveness.
Turnover
is the level or intensity of the desire to leave the organization/company,
there are many reasons that cause this turnover intention and one of them is
the desire to get a better job (Dechawatanapaisal, 2017).
According to Agustina (2020)
turnover is characterized by a decrease in the productivity level of employee
performance at the company, usually this occurs as frequently arriving late,
often skipping school, or high levels of absenteeism for various reasons, lack
of enthusiasm and low initiative or lack of desire to work hard. Research
conducted by (Ayu & Mayliza, 2019; Dandi Irawan, 2021; Faaroek, 2019; Rahmizal
& Lasmi, 2021; Vicky & Asj’ari, 2021)
states that organizational culture is able to mediate the influence of
leadership serving against Turnover. Based on this description, the hypothesis
in this study is:
H: There is an organizational culture towards
Turnover through Quality of work life
Table 1
Previous Studies
|
Author, Year |
Title |
Methods |
Results |
Similarities
|
Differences |
|
Abbas (2020) |
The Role
of Organizational Culture in Job Satisfaction and Turnover: A Study of
Pakistani Employees |
Analysis
and Comparison |
Corporate
culture directly affects employee satisfaction, which in turn has a negative
impact on employee turnover. |
Both
involve organizational culture and turnover variables. |
This study
used analysis and comparison methods, while the research was conducted using
quantitative methods. In addition, this research was conducted on employees
in Pakistan, while the research was conducted on employees in North Jakarta,
Indonesia. |
|
Idiegbeyan-ose et al. (2018) |
Influence
of Organizational Culture on Turnover intention of Library Staff in Private
University Libraries, South-West Nigeria |
Quantitative
survey |
There is a
significant relationship between organizational culture and turnover
intention of library staff in South-West Private University Library, Nigeria. |
Both
involve organizational culture and turn-over variables. In addition, both use
quantitative survey research. |
The
research conducted added several variables such as servant leadership,
personality, and QWL. In addition, this research was conducted in West
Nigeria, while the current research was conducted on employees in North
Jakarta, Indonesia. |
|
Akgunduz et al. (2018) |
The
effects of rewards and pro-active personality on Turnover intentions and meaning of
work in hotel business |
Quantitative |
Both
non-financial and financial rewards have a negative effect on turnover
intention, while financial rewards and a proactive personality have a
positive effect on job meaning. |
Both
involve personality variables, Turnover, and QWL. In addition, both use
quantitative research. |
The
research conducted added several variables such as servant leadership. In
addition, this research was conducted on hotel employees in Turkey, while the
research was conducted on employees in North Jakarta, Indonesia. |
Based
on the background of the problems that have been described, the researcher is
interested in studying more deeply the issues of QWL and Organizational
Culture. The purpose of this study was to analyze the direct influence of
organizational culture on Turnover through Quality of work life
METHOD
The
approach in this research is a quantitative approach, because this research is
presented with numbers. This is in accordance with the opinion of Arikunto (2010)
who stated that quantitative research is a research approach that requires a lot
of numbers, starting from data collection, interpretation of the data, and the
appearance of the results. In this study, data were collected using a
questionnaire, and the results of the questionnaire were analyzed to determine
the effect of each variable calculated using SEM PLS analysis.
To
obtain the necessary data in the field, in order to prove the hypotheses that
have been set, it is necessary to use the right data collection technique or
method in the sense that it can be accounted for that the data obtained is
accurate, correct, and not distorted. Data collection techniques in this study
used surveys with data collection tools, such as questionnaires or
questionnaires. Questionnaire is a tool that can be used for research that uses
a quantitative approach to the survey method (Moleong, 2017).
Data
analysis was carried out using the Partial Least Square (PLS) method using SmartPLS version 3 software. PLS is a method of solving
Structural Equation Modeling (SEM) which is valued more than other SEM
techniques. SEM has a higher degree of flexibility in research that links
theory and data, and is capable of carrying out path analysis with latent
variables, so it is often used by researchers who focus on social sciences.
Partial Least Square is a fairly strong analytical method, because it is not
based on many assumptions. Data also does not have to be multivariate normal
distribution (indicators with category scale, ordinal, interval to ratio can be
used in the same model), and the sample does not have to be large Ghozali (2016).
A. Description
of Organizational Culture
Organizational culture in this study was measured by eight
question items divided into four measurement dimensions, namely Involvement,
Consistency, Adaptability and Missions. The results of
the calculation of the average score of respondents' answers on the
organizational culture variable as a whole are in the good category (mean =
3.727), which means that the organizational culture in PT Nipindo
Primatama Group, North Jakarta City, is good.
%20215-232.fld/image019.jpg)
Figure 1. Description of the Organizational Culture of PT Nipindo Primatama Group North Jakarta City
Based on the results of calculating the average value for
each dimension of organizational culture measurement, it is found that the
lowest average is on the Mission dimension, which means that although the
organizational culture at PT Nipindo Primatama Group. The city of North
Jakarta has been good, but the organizational culture related to the company's
mission still needs to be improved. For this reason, employees must understand
the mission and goals of the company, so that the company's goals are more easily
achieved. Employees need direction, so that it is easier to complete work, with
clear directions, it will be easier for employees to carry out their duties and
it will be easier for the company to achieve its goals.
Table 2
The average score of Respondents'
Answers on Organizational Culture Variables
|
No |
Indicator Statement |
Means |
|
1 |
Decisions in the company are usually made at the
stage where the correct information is available. |
3,789 |
|
2 |
Employee capabilities are continuously improved |
3,812 |
|
3 |
Employees from different
Units/Divisions/Directorates share perspectives |
3,797 |
|
4 |
There are clear and consistent values that govern
how to run a business |
4,023 |
|
5 |
Various parts of the organization often work
together to create change |
3,970 |
|
6 |
New and better ways of doing work are constantly
being adopted by companies. |
3,985 |
|
7 |
Employees understand what needs to be done to be
successful in the long term |
3.128 |
|
8 |
There is a clear mission in the organization that
gives meaning and direction to work |
3.308 |
Source:
processed data (2022)
Based on the results of the analysis in Table 2, an
illustration is obtained that of the eight question items that measure the
Organizational Culture variable, the lowest average score is obtained on
indicators number 7 and 8, which means that even though the company's
organizational culture is good, it still needs improvement in terms of clarity.
the mission and direction of the company and the knowledge of employees on how
to be successful in the long term.
The results of the analysis show that there are still many
employees who do not understand what needs to be done in order to achieve
long-term success. This can be overcome by providing training, especially for
new employees, so that their insight and knowledge will increase. Another
thing, training is expected to be able to train problem solving skills in
employees, so that they will be more trained and skilled in solving problems at
work.
The results of the study
also show that there are still many employees who feel that the mission and
direction of the company are still unclear, due to the lack of information
conveyed to employees or the inability of employees to capture information,
especially for employees who have just worked (service period 0-5 years
dominating) or employees with high school education and below (quite
dominating), explanations regarding these matters often cannot be captured
properly, so they often do not really understand the mission and direction of
the company.
B. Description
of Quality of Work Life
QWL variables in this research is
measured by five measurement dimensions, namely Supervisors supports, Good work
environment, Professional respect, Work life balance, Skill development. The
results of the calculation of the average score of respondents' answers on the
QWL variable are in the good category. This shows that basically the QWL of
employees in this company is good. The results of the calculation of the
average score of respondents' answers on the QWL variable are in the good
category (mean = 3.367), so it can be said that the employee's QWL is actually
good. Details of this can be seen in Figure 2.
%20215-232.fld/image020.jpg)
Figure
2. Overview of the Quality of Work Life of Employees at PT Nipindo
Primatama Group, North Jakarta City
Furthermore,
the results of calculating the average per dimension, the result is that the
lowest average is on the dimensions of availability of job alternatives and
hostile work environment, meaning that overall the employee QWL is good, but in
terms of availability of job alternatives and hostile work environment
employees still feel lacking. Details of this can be seen in Table 3.
Table
3
The average score of Respondents Answers on QWL Question
Items
|
No |
Statement |
Means |
|
1 |
The work given is very difficult |
3,203 |
|
2 |
There is no alternative from superiors at work |
3,083 |
|
3 |
The target given is quite high |
3,722 |
|
4 |
The work given is too dense |
3.173 |
|
5 |
Leaders do not provide corrective directions, when employees make work
mistakes |
3,060 |
|
6 |
Always encounter difficulties at work |
4,053 |
|
7 |
All policies are applied inconsistently to all employees |
3,895 |
|
8 |
Before making a decision, the organization does
not seek accurate and factual information |
3,203 |
|
9 |
The company does not provide opportunities for employees to express their
opinions before making decisions |
3030 |
|
10 |
Colleagues don't want to help, when someone has difficulty doing the task |
3,417 |
|
11 |
Co-workers don't want to help when someone has difficulty doing the task |
3.143 |
|
12 |
Bosses who are unfair to co-workers |
3,098 |
Source:
processed data (2022)
The results of the analysis show that of the 12 question
items that measure the QWL variable, the items with the lowest average are item
numbers 2,4,5,9,11 and 12. This means that even though the employee QWL is
quite good, there are still many employees who feel that their QWL is low,
because (1) there is no alternative from their superiors at work, (2) the work
given is too dense, (3) there is a lack of direction from superiors when
employees work, (4) the company does not provide opportunities for employees to
express their opinions before making decisions, (5) Co-workers don't want to
help when someone is having difficulties doing tasks and Bosses are unfair to
co-workers.
C. Turnover
Description
Turnovers employees in this study is measured by five
measurement dimensions, namely supervisors support, good work environment,
professional respect, work life balance and skill development. The results of
the calculation of the average answer score on the Turnover variable are in the
high category, which means that there have been many turnover symptoms in this
company caused by many things, both from the leadership side and job
specifications. Details of this can be seen in Figure 3.
%20215-232.fld/image021.jpg)
Figure
3. Overview of Employee Turnover at PT Nipindo Primatama Group, North Jakarta City
The
results of the calculation of the average score of respondents' answers, the
results of the analysis show that most of the symptoms of turnover are due to
lack of support from supervisors, lack of work life balance and professional
respect which are considered lacking by employees. Details of this can be seen
in Table 4
Table 4
The average score of
Respondents' Answers on the Turnover Variable
|
No |
Statement |
Means |
|
1 |
Supervisors not always support career and job |
3,534 |
|
2 |
Supervisors does not ensure that the income/salary received is
appropriate and in accordance with the workload |
4,534 |
|
3 |
I feel uncomfortable with the working conditions
(comfort, quiet, and facilities) at work. |
3,977 |
|
4 |
Lack of assurance of a safe work environment. |
3,722 |
|
5 |
The company does not implement a structural system
for providing competitive direct compensation (salary) in accordance with the
position/title |
3,985 |
|
6 |
Rewards is not appropriate and in proportion to the results
of the work |
4,038 |
|
7 |
There were times when I had to work not according to
the working hours set by the company |
4,023 |
|
8 |
I cannot do other activities outside working hours |
4,459 |
|
9 |
Bosses never try to create a wide variety of tasks
for employees to reduce monotony. |
3,496 |
|
10 |
Bosses have never given more job-related
responsibilities |
3,466 |
|
11 |
Bosses do not provide opportunities for all
employees to use the new knowledge they have. |
3,880 |
Source:
processed data (2022)
The results of the calculation of the average score of
respondents' answers on each item of the question of the turnover variable show
that the highest average is in items number 9 and 10, meaning that symptoms of
turnover appear mostly because superiors are assessed by employees not trying
to create a wide variety of tasks for employees To
reduce monotony and superiors, it is considered that employees do not give more
work-related responsibilities.
D. SEMS PLS
1. Organizational
Culture Construct
The
Organizational Culture Construct is a 2nd order construct with four measurement
dimensions, namely Involvement, Consistency, Adaptability and Mission, where
each construct is measured with two measurement indicators, so that the form of
the Organizational Culture construct measurement model along with the
estimation results is shown in Figure 4.
%20215-232.fld/image022.jpg)
Figure
4. Estimation Results of the Organizational Culture Construct CFA Model (X1)
Based on the estimation results of the
Organizational Culture construct CFA model in Figure 4, there are several
indicators that are invalid in measuring the Organizational Culture construct,
because it has a loading factor <0.7, namely indicator X1.1.1 from the
involvement dimension and X1.4.2 from the Mission dimension. Therefore, these
two indicators must be excluded from the model, because they are considered
unable to properly measure X1 and its dimensions. The results of the estimation
of the X1 measurement model after the two indicators are removed from the model
can be seen in Figure 5.
%20215-232.fld/image023.jpg)
Figure
5. Estimation Results of the Organizational Culture Construct CFA Model (X1)
after the two invalid indicators were excluded
The model estimation results in Figure 5 show that
after two invalid indicators are removed from the model, then all indicators in
the X1 measurement model valid and the 1st order
construct AVE (X1 dimension) has > 0.5, which means that all indicators in
the organizational culture construct measurement model have met the required
convergent validity criteria. Furthermore, to ensure that the dimensions of
measuring X1 are the correct dimensions that can measure X1 properly, a
bootstrapping test is carried out. The results of the bootstrapping test in
Table 4.12 show that all dimensions have a p value <0.05 and t statistic
> 1.96, which means that the four dimensions measuring X1 are dimensions
that can be used to measure the company's organizational culture. Details of
this can be seen in Table 5.
Table 5
Results
of the Organizational Culture Construct Bootstrapping Test (X1)
|
Path |
Original Sample(O) |
Sample Means(M) |
Standard Deviations (STDEV) |
t Statistics (|O/STDEV|) |
P Values |
|
X1 -> X1.1 |
0896 |
0896 |
0.013 |
69,063 |
0.000 |
|
X1 -> X1.2 |
0.986 |
0.986 |
0.003 |
368,012 |
0.000 |
|
X1 -> X1.3 |
0.974 |
0.974 |
0.006 |
169,934 |
0.000 |
|
X1 -> X1.4 |
0896 |
0.895 |
0.014 |
62,759 |
0.000 |
Source:
processed data (2022)
2. Turnover
construct
The
Turnover construct is a 2nd order construct with six measurement dimensions,
namely Supervisors, Good Work, Professional respect, WLB, Skill development.
The estimation results can be seen in Figure 6.
%20215-232.fld/image024.jpg)
Figure
6. Estimation Results of the Construct CFA Model Quality of Work Life (Z)
Based
on the estimation results of the CFA model for the Personality construct in
Figure 6, there are several indicators that are invalid in measuring the
Turnover construct, because they have a loading factor <0.7, namely
indicators Y2.1 and Y4.1, so these two indicators must be removed from the
model, because they are considered unable to properly measure Turnover along
with its dimensions. The estimation results of the Turnover measurement model
after the two indicators are removed from the model can be seen in Figure 7.
%20215-232.fld/image025.jpg)
Figure
7. Estimation Results of the Construct CFA Model turnovers (Y) after both invalid indicators are issued
The model estimation results in Figure 7 show that
after the two invalid indicators are removed from the model, all indicators in
the Turnover construct measurement model valid
and AVE 1st order construct (Turnover dimension) has > 0.5, which means that
all indicators in the Turnover construct measurement model have met the
required convergent validity criteria. Next, ensure that the dimensions of the
Turnover measure can measure Turnover properly. Then do the bootstrapping test.
The results of the bootstrapping test in Table 1 show that all dimensions have
a p value <0.05 and t statistic > 1.96, which means that the four
dimensions for measuring turnover are dimensions that can be used to measure
company employee turnover.
Table 6
X3 Construct Bootstrapping Test Results
|
Path |
Original Sample(O) |
Sample Means(M) |
Standard Deviations (STDEV) |
t Statistics (|O/STDEV|) |
P Values |
|
Y -> Y.1 |
0.984 |
0.984 |
0.002 |
465,839 |
0.000 |
|
Y -> Y.2 |
0.782 |
0.781 |
0.046 |
16,954 |
0.000 |
|
Y -> Y.3 |
0.948 |
0.948 |
0.009 |
107,090 |
0.000 |
|
Y -> Y.4 |
0.946 |
0.946 |
0.012 |
78,157 |
0.000 |
|
Y -> Y.5 |
0.958 |
0.959 |
0.006 |
152,328 |
0.000 |
Source: processed data (2022)
Based
on the overall results of the CFA analysis on each construct, it is concluded
that all dimensions of each research variable can be used to measure research
variables, but there are several indicators that are invalid in measuring
research variables, so they cannot be used as a measure of research variables.
Based on the overall results of the CFA test on each construct, Organizational
Culture is measured by six measurement indicators, Service Leadership is
measured by 14 measurement indicators, Personality is measured by 26
indicators, QWL is measured by 10 indicators and Turnover is measured by nine
measurement indicators.
E. Testing the Effect of Between
Variables
In
PLS analysis, after the model is proven fit, testing the effect between
variables can be done. Testing the effect includes testing the direct effect,
testing the indirect effect and testing the total effect.
1. Direct Influence
The direct effect or
often referred to as the direct effect is the direct effect of exogenous
variables on endogenous variables. In PLS SEM analysis, the significance and
direction of direct influence can be seen from the p value, t statistic and the
path coefficient connecting endogenous to exogenous. If the p value is <0.05
and the t statistic is >1.96 (two tail t value), it can be concluded that
the exogenous variable has a significant effect on the endogenous variable with
the direction of influence according to the sign attached to the path
coefficient. Furthermore, if the p value is obtained > 0.05 and the t statistic
is <1.96 (two tail t value), then it is concluded that the exogenous
variable has no significant effect on the endogen (Hair et al, 2019). Details
of this can be seen in Table 7.
Table 7
Indirect
Influence Test Results
|
Path |
Original
Sample (O) |
Sample
Mean (M) |
Standard
Deviation (STDEV) |
t Statistics (|O/STDEV|) |
P Values |
|
X1 -> Y |
-0.064 |
-0.065 |
0.080 |
0.800 |
0.424 |
|
X1 -> Z |
0.276 |
0.282 |
0.068 |
4.075 |
0.000 |
|
X2 -> Y |
-0.217 |
-0.211 |
0.073 |
2.983 |
0.003 |
|
X2 -> Z |
0.369 |
0.362 |
0.068 |
5.441 |
0.000 |
|
X3 -> Y |
-0.351 |
-0.354 |
0.091 |
3.857 |
0.000 |
|
X3 -> Z |
0.234 |
0.237 |
0.075 |
3.137 |
0.002 |
|
Z -> Y |
-0.286 |
-0.290 |
0.082 |
3.484 |
0.001 |
Source: processed data (2022)
The
explanation of the results of the direct influence test is as follows:
a) Line
X1 à Z
On
the path that shows the influence of organizational culture on QWL, a very
significant p value (0.000) is obtained with a t statistic of 4.075 and a
positive path coefficient of 0.276, because the p value <0.05; t statistic
> 1.96 and the path coefficient is positive, it can be concluded that
organizational culture has a significant and positive effect on employee QWL,
the better the company's organizational culture, the higher the employee QWL,
and vice versa, a bad organizational culture can reduce employee QWL.
b) Line
X2 à Z
On
the path that shows the influence of servant leadership on QWL, a very
significant p value (0.000) is obtained with a t statistic of 5.441 and a
positive path coefficient of 0.369. Because the p value < 0.05; t statistic
> 1.96 and the path coefficient is positive, it is concluded that servant
leadership has a significant and positive effect on employee QWL, the better
the servant leadership carried out by company leaders, the higher the employee
QWL, and vice versa applies serving leadership which does not carried out properly
by company leaders can reduce employee QWL.
c) Line
X3 à Z
On
the path that shows the influence of personality on QWL, a very significant p
value (0.002) is obtained with a t statistic of 3.137 and a positive path
coefficient of 0.234. Because the p value < 0.05; t statistic > 1.96 and
the path coefficient is positive, it can be concluded that employee personality
has a significant and positive effect on employee QWL, the better the
personality of the company's employees, the higher the employee QWL, and vice
versa the unfavorable employee personality can reduce employee QWL.
d) Line
X1 à Y
On
the path that shows the influence of organizational culture on turnover, the p
value is not significant (0.424) with a t statistic of 0.800, because the p
value is > 0.05; t statistic <1.96, it can be concluded that
organizational culture has no effect on employee turn-over, meaning that a good
organizational culture cannot always reduce employee turnover in a company.
e) Line
X2 à Y
On
the path that shows the influence of servant leadership on turnover, a very
significant p value (0.003) is obtained with a t statistic of 2.983 and a
negative path coefficient of -0.217. Because the p value < 0.05; t statistic
> 1.96 and the path coefficient is negative, it can be concluded that
servant leadership has a significant and negative effect on employee turnover,
the better the service leadership carried out by company leaders, the lower
employee turnover, and vice versa, serving leadership is not carried out
properly by company leaders have the potential to increase employee turnover.
f) Line
X3 à Y
On
the path that shows the influence of personality on Turn-over, a very
significant p value (0.000) is obtained with a t statistic of 3.857 and a
negative path coefficient of -0.351. Because the p value < 0.05; t statistic
> 1.96 and the path coefficient is negative, it is concluded that employee
personality has a significant and negative effect on employee turnover, the
better the personality of the company's employees, the lower the employee
turnover, and vice versa the unfavorable employee personality can trigger
employee turnover.
g) Line
Zà Y
On
the path that shows the effect of QWL on Turnover, a very significant p value
(0.001) is obtained with a t statistic of 3.484 and a negative path coefficient
of -0.286. Because the p value < 0.05; t statistic > 1.96 and the path
coefficient is negative, it can be concluded that employee QWL has a
significant and negative effect on employee turnover, the better the quality of
work life of company employees, the lower employee turnover, and vice versa a
poor QWL can trigger turnover employee.
2. Indirect Influence
The
indirect effect or often referred to as the indirect effect is the influence of
exogenous variables on endogenous variables through mediating (intervening). As
in the direct effect test, the significance of this indirect effect is assessed
from the p value and t statistics. P value <0.05 and t statistic > 1.96
(two tail t statistics cut value) indicating the existence of an intervening
role in mediating exogenous effects on endogenous, while P value > 0.05 and
t statistic <1.96 (two tail t statistics cut value) indicates the absence of
an intervening role in mediating exogenous to endogenous influences. Details of
this can be seen in Table 8.
Table
8
Indirect
Influence Test Results
|
Path |
Original
Sample (O) |
Sample
Mean (M) |
Standard
Deviation (STDEV) |
t Statistics (|O/STDEV|) |
P Values |
|
X1 -> Z
-> Y |
-0.079 |
-0.081 |
0.029 |
2.728 |
0.007 |
|
X2 -> Z
-> Y |
-0.106 |
-0.105 |
0.037 |
2.840 |
0.005 |
|
X3 -> Z
-> Y |
-0.067 |
-0.069 |
0.029 |
2.272 |
0.023 |
Source: processed data (2022)
F.
Hypothesis
Testing
Hypothesis
in this study states that organizational culture has an influence on turnover
through QWL. The results of the analysis show an indirect path that connects X3
to Y via Z, obtained a p value of 0.023 and a t statistic of 2.272 with a
negative path coefficient -0.067.
Because the p value obtained is <0.05, the t statistic is > 1.96 and the
path coefficient is negative, it is concluded that personality can have an
indirect effect on turnover through QWL life. This means that QWL
significantly mediates the indirect effect of personality on turnover, good
personality increases employee QWL and can reduce employee turnover. This
supports hypothesis 10 in this study, then hypothesis 10 is accepted.
G. Discussion
The
Influence of Organizational Culture on the Quality of Work Life
Hypothesis
1 in this study is proven and it is concluded that organizational culture has a
significant and positive effect on employee QWL, the better the company's
organizational culture, the higher the employee QWL, and conversely a bad
organizational culture can reduce employee QWL.
The
results of this study are in line with the results of the study (Astuti & Soliha, 2021; Bismala, 2021; Budiono, 2021; Chiemeke et al.,
2019; Eliza & Pratiwi, 2021; Halim, 2019; Hamidi et al., 2016; Harrington
& Santiago, 2006; Hermawati, 2021; Kim & Jang, 2018; Mafini, 2016;
Natasya & Awaluddin, 2021; Rahmawati & Setiawati, 2017; Winasih et al.,
2015)
who found a significant relationship between organizational culture and the
quality of work life of employees.
The
results of this study indicate that the company's organizational culture is
good, but still needs improvement in terms of the clarity of the company's mission
and direction, as well as employee knowledge about how to be successful in the
long term. Therefore, in order to increase employee QWL, it is necessary to
evaluate work culture, especially in these two aspects.
The
results of the analysis show that there are still many employees who do not
understand what needs to be done in order to achieve long-term success. This
can be overcome by providing training, especially for new employees, so that
their insight and knowledge will increase. Training is expected to be able to
train problem solving skills in employees, so that they are more trained and
skilled in solving problems at work.
The
results of the study show that there are still many employees who feel that the
mission and direction of the company are still unclear, due to the lack of
information conveyed to employees or the inability of employees to capture
information, especially for new employees (0-5 years of service predominate) or
employees with high school education and below (quite dominating), explanations
regarding these matters often cannot be captured properly, because they do not
really understand the mission and direction of the company.
CONCLUSION
Organizational
culture has a significant and positive effect on the quality of work life of
employees, the better the company's organizational culture, the higher the
quality of work life of employees, and vice versa, a bad organizational culture
can reduce the quality of work life of employees.
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