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).

 

RESULTS AND DISCUSSION

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.

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.

 

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.

 

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.

Description: Diagram, schematic

Description automatically generated

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.

Description: Diagram, schematic

Description automatically generated

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.

Description: Diagram, schematic

Description automatically generated

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.

Description: Diagram, schematic

Description automatically generated

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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Saripudin, Musa Hubeis, Nancy Yusnita (2023)

 

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