INNER AND OUTER MODEL OF WORK CULTURE AND EMPLOYEE PERFORMANCE OF COMPANY IN BATAM AREA

Abstract

As company of Batam area in an effort to improve and provide services continuously, it
attempts to provide the best. In this regard, it encourages every employee to compete in
maximizing all the potential that they have for their performance. The work culture within the
company of the Batam area cannot inseparable part in achieving its goals and it enhances the
performance of the company in the Batam area as a whole. This study is focused on the
variables of work culture and employee performance of the company in the Batam area.
Further, the research problem dealing with this case is how the work culture of employees in
the company of Batam area, does the work culture effect on the employee performance. The
purpose of this study is to determine the stage of work culture and the effect of work culture
on performance. This research was conducted in the environment of the company in Batam
area. The quantitative descriptive research involved a sample of 30 employees. The
questionnaire was used as a data collection tool in research. Data was processed with SPSS
software and SEM SmartPLS v2. The analysis conducted was the mean score test, Outer
Model test, Inner Model test, and Hypothesis test. The result of the study indicates that the
work culture of the company in Batam area is very good. Work culture has a significant
positive effect on employee performance. To improve employee performance, it is necessary
to continue to maintain and improve work culture. The Company in Batam area needs to pay
attention to work culture in an effort to improve performance. In addition, the future
researcher is advised to conduct studies using other variables such as commitment and job
satisfaction, and to consider other demographic factors in the study.