The Improvement of Employee's Performance in Plastic Ore Industry: Mediating Role of Work Motivation

Abstract

This study aims to examine and analyze the influence of organizational culture and compensation on work motivation and its implications for employee performance in the plastic ore industry in Indonesia. Based on an initial survey of 30 employees, it was found that 56.67% of employees showed below-average performance indications. This study uses Structural Equation Modeling (SEM) analysis to determine the effect of each independent variable on the dependent variable partially and simultaneously. The independent variables used are organizational culture and compensation, the dependent variable is work motivation and performance. Each variable uses 6 indicators. The results of the SEM analysis show that organizational culture influences motivation by 0.354 and performance by 0.394. The compensation variable influences motivation by 0.378 and performance by 0.251. Motivational variables affect the performance of 0.317. Simultaneously, organizational culture and compensation influence the motivation of 0.497 while the organizational culture, compensation and motivation affect the performance of 0.764.