THE INFLUENCE OF ORGANIZATIONAL CULTURE, PHYSICAL WORK ENVIRONMENT AND COMPENSATION (REWARD) ON EMPLOYEE PERFORMANCE AT PT. ADROADY JAKARTA

Ahmad Diky Alfarisi, Resti Hardini, Kumba Digdowiseiso

Faculty Of Economic and Business, Universitas Nasional, Indonesia

Email: [email protected], [email protected] , [email protected]*

Abstract

This study aims to determine the effect of, Organizational Culture,Physical Work Environment and Compensation (Reward) on Employee Performance at PT. Adroady, Jakarta. The data of this study used primary data in the form of questionnaires to 158 employees of PT. Adroady, Jakarta. Data analysis techniques using multiple linear regression analysis and using the SPSS program. The results showed an influence between Organizational Culture (X1), Employee Performance (Y) of 0.351 and an influence of 35,1%. Similarly, the variable Physical Work Environment (X2) on Employee Performance (Y) of 0.233 and has an influence of 23.3%. Then for the variable Compensation (Reward) (X3) on Employee Performance (Y) of 0.199 and has an influence of 19,9%. Partially or simultaneously have a strong influence among the three variables, the most significant is the Organizational Culture variable of 0,000. The results of this research hope that companies can increase compensation (Rewards) which can support employee performance.

Keywords: Organizational Culture, Physical Work Environment., Compensation (Reward), Employee Performance

INTRODUCTION

Human resources are one of the most important factors in organizations, both government and private organizations. Human resources become the driver of activities in an organization. Even modern organizations with the support of modern equipment, still cannot move without human resources.

The quality of human resources is a guarantee of whether or not the organization's goals are achieved. With the support of facilities and infrastructure, organizations that have quality human resources will certainly be easier to achieve their goals than organizations with unqualified human resources.

The era of globalization requires government and private organizations in Indonesia to improve the quality of human resources so as not to be left behind from other countries. The increasingly competitive business world in the digital era demands to make adjustments in order to be able to answer the demands of a fast-growing market. The tighter competition and the more open information, forcing organizations to be able to make the best use of human resources through increasing their abilities and skills.

Achievement of employee performance is an important thing that needs to be carried out to produce maximum performance and be able to survive in the midst of global competition. HR performance is work performance or work results (output) both quality and quantity achieved by HR unity period of time in carrying out their work duties in accordance with the responsibilities given to them.

Mangkunegara (2014: 9) Employee performance is an interesting phenomenon to be examined, because this will determine the success of a company. Several factors affect employee performance such as organizational culture, physical work environment and compensation (Reward).

The first factor that affects employee performance is organizational culture. Organizational culture is a belief, attitude and value that is generally owned, which arises in the organization, put forward more simply, culture is the way we do things here. According to Sutrisno (2011: 2). This is supported in research conducted by Deni Sulistiawan, Sukisno S. Riadi, Siti Maria (2017) stated that organizational culture variables have a positive and significant effect on the performance of employees of the Sebulu II East Kalimantan Health Center.

Organizational culture is often defined as values, symbols that are understood and adhered to together, that an organization has so that the members of the organization feel different from other organizations.

Organizational culture is a controller and direction in shaping human attitudes and behaviors that involve themselves in an organizational activity. Individually and in groups, employees will not be separated from organizational culture. The better the culture that prevails in an agency, it will affect employee performance, so that there is satisfaction felt by employees in working at an agency.

The second factor that can affect employee performance is the physical work environment. A good and comfortable physical work environment greatly affects employee performance in raising morale, so special attention is needed about the physical work environment. Companies must pay attention to work environment factors to increase their physical company activities such as air, sound, light and color. The work environment is the entire tool and material faced, the surrounding environment in which a person works, his working methods both as individuals and groups. According to Sedarmayanti (2011: 21). This is supported in research conducted by Djuremi, Leonardo Budi Hasiolan, Maria Magdalena Minarsih (2016) stated that Work Environment variables have a positive and significant effect on the performance of Semarang City Market Office employees.

The role of the work environment can be said to be important in creating an encouragement for employees to be able to work better. Creating a comfortable, safe and pleasant work environment is one way companies can improve employee performance.

The third factor that is thought to affect employee performance is compensation (Reward). Compensation (Reward) is a reward or bonus given because of a person's achievements. The implementation of a compensation system (Reward) or rewards to outstanding employees will provide motivation to employees to further improve performance at work. An important principle in the compensation system is that high achievements must be rewarded with proper compensation and if they violate the rules in compensation (Reward) must be given appropriate and fair sanctions.

Compensation (Reward) It is an effort to foster a feeling of acceptance (recognition) in the work environment, which touches aspects of compensation and aspects of relationships between workers with one another. The existence of salaries and bonuses, welfare, career development, psychological and social awards Nawawi (2010: 119). This is supported in research conducted by Ruslan Mas'ud, LCA. Robin Jonathan, Elfreda Aplonia Lau stated that variable compensation (Reward) have a positive and significant effect on the performance of employees at the East Kutai Regency Education and Culture Office. PT. Adroady is a startup company engaged in "Car Advertising" which is Video Format. This startup adopts programmatic concepts from videotron media, a number of IoT devices, and machine learning as its breakthrough. System technology Programmatic What is displayed through the videotron installed in the car makes the advertisements displayed more attractive to consumers.

So far Adroady has partnered with brands as advertisers. They are Rumah.com, Lazada, Tokopedia, Nusatrip, Ralali, and Panorama Tours and others.

The purpose of this study is to analyze and determine the influence between organizational culture, physical work environment and compensation (reward) on employee performance at PT. Adroady Jakarta.

This research has significant implications, especially in human resource management at PT. Adroady Jakarta. First, the results provide deep insight into the extent to which a company's organizational culture influences employee performance. By understanding the factors that shape organizational culture, management can identify ways to reinforce positive aspects and overcome potential barriers that might affect performance. Second, research highlights the importance of the physical work environment in improving employee morale and performance, providing a basis for companies to make improvements or changes to their physical work environment. Finally, findings on the effect of compensation (Reward) on employee performance have a major impact on payroll and reward policies at PT. Adroady. Management can use these findings to devise more effective compensation strategies, increase employee motivation and loyalty, and contribute to the achievement of company goals.

RESEARCH METHOD

Object of Research

The object of research in writing this thesis is employee performance influenced by Organizational Culture, Physical Work Environment and Compensation (Reward). The place / subject of research is PT. Adroady Jakarta.

Descriptive Analysis

According to Sugiyono (2013: 206), descriptive analysis is a method used to analyze data by describing or describing the data that has been collected as it is without intending to make conclusions that apply to the general or generalization.

Test Instruments

a. Validity Test

According to Sugiyono (2012: 188), the Validity Test is useful to find out whether the question data on the questionnaire should be discarded or replaced because it is considered irrelevant.

b. Reliability Test

According to Ferdinand (2006: 218) Reliability is a scale or measuring instrument the resulting data is called reliable or reliable if the instrument consistently produces the same results every time a measurement is made.

Inferential Analysis

In this inferential method, researchers test and estimate the variables that are the focus of research, namely Organizational Culture, Physical Work Environment, Compensation (Reward) as an independent variable (independent variable) and Performance variables as dependent variables (dependent variables). According to Sugiyono (2013: 206), inferential analysis is a statistical technique used to analyze samples and the results are applied to the population. This statistic will be suitable for use if the sample is taken from a clear population, and the sampling technique from this population is random.

Classical Assumption Test

The Classical Assumption Test is a test used to determine the presence or absence of residual normality, multicollinearity, otochicorrelation and heteroscedasticity in regression models. A good regression model is if the model satisfies some of the classical assumptions of normally distributed residuals, meaning the absence of multicollinearity, otochirelation and heteroscedasticity. Classical assumption tests must be met in order to obtain regression with unusual estimates and reliable tests. If there is one condition that is not met, the results of the regression analysis are said to be BLUE (Best Linear Unbiased Estimator).

a. Normality Test

The Normality Test is used to test whether in a regression model, the two variables (free or bound) have a normal or at least close to normal distribution. The normality test is performed with the Kolmogorov-Smirnov test. The results of this analysis are then compared with the value of the crisis.

b. Multicollinearity Test

Multicollinearity Test means that between independent variables contained in the regression model have a perfect or near-perfect linear relationship (the correlation coefficient is high or even). A good regression model should not be perfect or near perfect among its independent variables.

c. Heteroscedasticity Test

The heterokedasticity test aims to test whether the regression model has variance inequality from the residuals of one observation to another. If the variance and residuals of one observation to the observation of another remain, then it is called homokedasticity and if different it is called heterokedasticity (Ghozali, 2016: 138)

d. Autocorrelation Test

The autocorrelation test aims to test whether in a linear regression model there is a confounding error in period t with an error in period t-1 (previous). Ghozali, (2016: 110) autocorrelation is to test whether autocorrelation occurs or not used Durbin-Watson test with the following criteria:

a) DU < DW < 4 – DU, so no autocorrelation occurs.

b) DW < DL or DW > 4 – DL, then autocorrelation occurs.

Multiple Regression Analysis

This analysis is used to determine the effect of the independent variable on the dependent variable. In this case the model is to influence how much the Organizational Culture, Physical Work Environment Compensation (Reward) to Employee Performance. The equation model used is as follows

By equation:

Y= a + b1X1 + b2X2 + b3X3 + e

Where:

Y = Employee Performance (KK)

a = Constant

B1, B2, b3, = Regression Coefficient

X1 = Organizational Culture (BO)

X2 = Physical Work Environment (LKF)

X3 = Compensation (Reward) (K)

E = Error

Model Due Diligence

a. Test F

The F test is performed to find out that in this model the independent variable is able to explain the dependent variable. And to see whether the analyzed model has a high level of model feasibility, namely the variables used by the model to explain the analyzed phenomenon (Ferdinand, 2013: 300). The test used a significant level of 0.05 (Priyatno. 2009: 146).

b. Test Coefficient of Determination (R2)

The coefficient of determination (R2) is a measure to determine the suitability or accuracy of the analysis model made.

Test t

The t test, which is a partial regression coefficient, is used to determine whether partially each independent variable has a positive and significant effect on the dependent variable by using the test of each variable's regression coefficient whether it has a meaningful influence or not on the dependent variable (Priyatno, 2009: 83).

RESULTS AND DISCUSSION

Descriptive Analysis

The results of the descriptive statistical test for the average count of each statement on each variable will be described in this section. The independent variables are Organizational Culture (X1), physical Work Environment (X2) and Compensation (Reward) (X3), and the dependent variable is Employee Performance (Y), each of which consists of 8 statements. Data analysis is carried out using calculations based on respondents' answers and using

statistical calculation methods using computer aids through the SPSS 23 program.

Test Instruments

a. Validity Test

Validity tests are used to test accuracy, measuring devices can reveal whether or not a questionnaire is valid. The validity test is calculated by comparing the value of r count (correlated item-total correlation) with r table, if r count > r table (at a significant rate of 0.05) then the statement is declared valid All 32 statements consist of 8 items for Organizational Culture, 8 points for Physical Work Environment, 8 points for Compensation (Reward) and 8 items for employee performance. This is determined using a 5% rcount, where n = 113, then obtained r table (0.05) = 0.184 and overall the statement used in this study is a greater count than rtable.

b. Reliability Test

Reliability tests are used to determine whether the measuring instrument will get a consistent precise measurement if the measurement is repeated again. The method used in the study was Cronbach Alpha. Reliability testing is a continuation of validity testing, where the items or statements entered in the test are valid items or statements only. To determine whether an instrument is reliable or not using the 0.6 limitation

Inferential Analysis of Classical Asusmtion Test

1. Normality Test Results

Table 1.

One-Sample Kolmogorov-Smirnov Test

		Unstandardized Residual
N		113
Normal Parametersa,b	Mean	.0000000
	Std. Deviation	2.29029379
Most Extreme Differences	Absolute	.145
	Positive	.145
	Negative	-.081
Test Statistics		.145
Asymp. Sig. (2-tailed)		.150c

a. Test distribution is Normal.

b. Calculated from data.

c. Lilliefors Significance Correction.

Source: SPSS output 23. Processed 2020

Based on the results of the normality test referring to the table above, it can be seen that the significant value obtained is 0.150> 0.05 which means that the data is normally distributed.

2. Multicollinearity Test Results

Table 2.

Coefficientsa
Type		Collinearity Statistics
Type		Tolerance	VIF
1	Budaya_Organisasi	.892	1.121
	Lingkungan_Kerja_Fisik	.840	1.191
	Compensation (Reward)	.924	1.082
a. Dependent Variable: ABRES

Source : Data Processed

Based on the results of the multicollinearity test referring to the table above, the VIF value for the variables Organizational Culture (X1) is 1.121, Physical Work Environment (X2) is 1.191, and Compensation (Reward) (X3) is 1.082, while the Tolerance value for the variable Organizational Culture (X1) is 0.892, Physical Work Environment (X2) is 0.840, and Compensation (Reward) (X3) is 0.924. Of the three VIF values of the variable are < 10 and the Tolerance value is more than 0.1 which means that the regression model does not contain mulytolinearity.

3. Heterokedasticity Test Results

Table 3. Heteroscedasticity Test Results

Coefficientsa

Type		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
Type		B	Std. Error	Beta	t	Sig.
1	(Constant)	5.792	2.183		2.653	.009
	Budaya_Organisasi	.068	.056	.118	1.223	.224
	Lingkungan_kerja_fisik	.132	.050	.260	1.621	.110
	Compensation (Reward)	.069	.047	.141	1.489	.139

a. Dependent Variable: ABS_RES

SPSS output 23. Processed 2020

The table above explains that the results of each independent variable, namely Organizational Culture (X1), Physical Work Environment (X2) and Compensation (Reward) (X3) using the glacier model obtained significant results greater than 0.05 which means that the data in this study did not occur heterokedasticity problems so that this research can be continued.

4. Autocorrelation Test Results

Table 4.

Model Summaryb

Type	Durbin-Watson
1	1.802a

a. Predictors: (Constant), Budaya_Organisasi, Lingkungan_kerja_fisik, Compensation ( Reward)

b. Dependent Variable: Kinerja_karyawan

Source : SPSS Output 23. Processed 2020

Based on the table above, it is known that the Durbin-Watson (DW) value is 1.802 to detect the presence or absence of autocorrelation, Durbin Watson testing is carried out from the number of independent variables 3 (K = 3), then a dL value of 1.6391 and a dU value of 1.7480 is obtained with the following conditions:

dU < dw < 4 – dU

1.7480 < 1.802 < 4 – 1.7480

1.7480 < 1.802 < 2.252

From the explanation above, it can be concluded that there is no autocorrelation in the linear regression model of this study.

Multiple Linear Test Results

Table 5.

Coefficientsa

Type		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
Type		B	Std. Error	Beta	t	Sig.
1	(Constant)	7.124	3.395		2.098	.038
	Budaya_Organisasi	.351	.086	.336	4.063	.000
	Lingkungan_kerja_fisik	.233	.078	.254	2.976	.004
	Compensation (Reward)	.199	.072	.224	2.752	.007

a. Dependent Variable: Kinerja_Karyawan

Source : SPSS Output 23. Processed 2020

Based on the results of multiple linear regression analysis referring to the table above, it can be known that the linear regression equation is as follows:

KK = 0.336 BO + 0.254 LKF + 0.224 K

Information:

Y = Employee Performance (KK) X₁ = Organizational Culture (BO)

X₂ = Physical Work Environment (LKF) X₃ = Compensation (Reward) (K)

The regression equation can be explained that:

(1) The Organizational Culture Multiple Line Regression (BO) coefficient has a value of 0.336, if the BO increases by one unit percent, the KK has a KK value of 0.336. This shows that the better the organizational culture, the higher the employee performance

(2) The Physical Work Environment Multiple Line Regression (LKF) coefficient has a value of 0.245, if the LKF increases by one unit percent, the KK has a KK value of 0.245. This shows that the better the Physical Work Environment, the higher the performance of employees

(3) The coefficient of Compensated Multiple Line Regression (Reward) (R) has a value of 0.224, if R increases by one unit percent then KK has a value of KK 0.224. This shows that the better the Compensation (Reward), the higher the performance of employees

Of the three independent variables, namely Organizational Culture, Physical Work Environment and Compensation (Reward) have a positive influence on Employee Performance. Thus, if the Organizational Culture, Physical Work Environment and Compensation (Reward) increase, Employee Performance will experience the same.

Model Due Diligence

1. F Test Results

Table 6.

ANOVAa

Type		Sum of Squares	Df	Mean Square	F	Sig.
1	Regression	294.368	3	98.123	18.205	.000b
	Residuals	587.490	109	5.390
	Total	881.858	112

a. Dependent Variable: Kinerja_karyawan

b. Predictors: (Constant), Budaya_Organisasi, Lingkungan_kerja_Fisik, Compensation ( Reward)

SPSS output 23. Processed 2020

Based on the results of the F test in the table above, it can be explained that the Fcalculate value is 18,205 (significant 0.000). The F value of the table is obtained from the value of the free degree (df) Residual (remainder) which is 109 as df denominator and df Regression (treatment) which is 3 as df numerator with a significant level of 5%, so that the value of Ftable (α = 5%) is 2.68 because the value of F calculated is greater than Ftable (18.205 > 2.69) with a significant level of 0.000 < 0.05, it can be concluded that Ho is rejected and Ha Accepted. Then Organizational Culture, Physical Work Environment and Compensation (Reward) have a positive and significant effect on Employee Performance (Y).

2. Coefficient of Determination Test Results

Table 7.

Model Summary

Type

R Square

Adjusted R

Square

Std. Error of the

Estimate

.578a

.334

.315

2.322

a. Predictors: (Constant), Budaya_Organisasi, Lingkungan_kerja_Fisik, Compensation ( Reward)

Source: SPSS output 23. Processed 2020

In the table above, it is shown that the R Square value is 0.334. Based on this value, it can be seen that the value of the coefficient of determination (R2) is explained at 33.4%, meaning that the variables of Organizational Culture, Physical Work Environment and Compensation (Reward) influence the variables of Employee Performance, while the remaining 66.6% are influenced by other variables that are not analyzed in this study.

Test Results t

Table 8.

Coefficientsa

Type		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
Type		B	Std. Error	Beta	t	Sig.
1	(Constant)	7.124	3.395		2.098	.038
	Budaya_Organisasi	.351	.086	.336	4.063	.000
	Lingkungan_Kerja_Fisik	.233	.078	.254	2.976	.004
	Compensation (Reward)	.199	.072	.224	2.752	.007

a. Dependent Variable: Kinerja_kayawan

Source : SPSS Output 23. Processed 2020

Based on the results of the t test referring to the table above, it can be seen that:

a) The calculated value for Organizational Culture is 4.063 with a significant level of 0.000, while the table t value with df = n-k-l (113-3-1=109), a significant level of 0.05 is obtained at 1.659. Since t count > t table (4.063 > 1.659) then Ho is rejected and H a is accepted, meaning that Organizational Culture has a positive and significant effect on Employee Performance.

b) For the calculated value of the Physical Work Environment of 2.976 with a significant level of 0.004, while the value of ttable with df = n-k-l (113-3-1=109), a significant level of 0.05 is obtained at 1.659. Because t count > t table (2.976>1.659) then Ho is rejected and H a is accepted, meaning that the Physical Work Environment has a positive and significant effect on Employee Performance.

c) For the calculated value of Compensation (Reward) of 2.752 with a significant level of 0.007, while the value of ttable with df = n-k-l (113-3-1=109), a significant level of 0.05 is obtained at 1.659 Because t calculate > t table (2.752 > 1.659) then Ho is rejected and Ha is accepted, meaning that Compensation (Reward) has a positive and significant effect on Employee Performance.

CONCLUSION

This study aims to analyze the influence of organizational culture, physical work environment and compensation (Reward) on employee performance at PT. Adroady Jakarta. Based on the formulation of the problem and discussion, the following conclusions can be drawn: (1) Organizational Culture has a positive and significant effect on Employee Performance, Organizational Culture is a habit that has been going on for a long time and is used and applied in the life of work activities as one of the drivers to improve the quality of work of employees and company managers related to innovation and risk taking, Attention to detail, result orientation and individual orientation both such as the value system in Organizational Culture can be used as a reference for employee behavior in organizations that are oriented towards achieving goals then Employee Performance will increase and vice versa if the Organizational Culture is not done properly then Employee Performance will be low. (2) Fisk Work Environment has a positive and significant effect on Employee Performance, the physical work environment is the overall facilities and infrastructure around employees who are doing work that can affect the implementation of work related to lighting, air circulation, noise, safety in the workplace properly such as employees can carry out activities optimally, healthy, safe and comfortable then performance will increase and vice versa if the environment Physical work is not objective, so employee performance will be low. (3) Compensation (Reward) has a positive and significant effect on Employee Performance, Compensation (Reward) is an intrinsic reward, which is a reward that is part of the job itself, the reward includes a sense of completion, achievement, autonomy and growth related to work, wages, promise opportunities and co-workers. If the compensation (Reward) given is not right on target, then employee performance will be low.

Organizational Culture at PT. Adroady Jakarta has been well seen from its contribution that has been able to influence Employee Performance. It must be maintained and improved. However, PT. Adroady Jakarta needs to see and pay attention especially about orientation to details, that high work results will arise when employees are happy and comfortable.

Physical Work Environment at PT. Adroady Jakarta has been well seen from its contribution that has been able to influence Employee Performance. It must be maintained and improved. However, PT. Adroady Jakarta needs to see and pay attention especially about noise, that employees must avoid noise in order to concentrate at work.

Compensation (Reward) at PT. Adroady Jakarta has been well seen from its contribution that has been able to influence Employee Performance. It must be maintained and improved. However, PT. Adroady Jakarta needs to see and pay attention especially about wages, that the salary given to employees must be adjusted to the burden of tasks completed.

Thus the conclusions and suggestions that researchers can give, hopefully it can be useful especially for the company and generally for all interested parties.

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Copyright holder:

Ahmad Diky Alfarisi, Resti Hardini, Kumba Digdowiseiso (2024)

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Journal of Social Science

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