Indonesian Journal of Law and Economics Review
Vol 19 No 2 (2024): May
Human Resource Management

Boosting Employee Performance through Culture, Compensation, and Motivation in Indonesia
Meningkatkan Kinerja Karyawan melalui Budaya, Kompensasi, dan Motivasi di Indonesia


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  • Rani Rahmawati,
  • Hasan Ubaidillah*
Rani Rahmawati
Universitas Muhammadiyah Sidoarjo, Indonesia
Hasan Ubaidillah
Universitas Muhammadiyah Sidoarjo, Indonesia *

(*) Corresponding Author
Picture in here are illustration from public domain image or provided by the author, as part of their works
DOI: https://doi.org/10.21070/ijler.v19i2.1112
Published May 3, 2024
Keywords
  • Organizational Culture,
  • Compensation,
  • Work Motivation,
  • Employee Performance,
  • Quantitative Analysis
How to Cite
Rahmawati, R., & Ubaidillah, H. (2024). Boosting Employee Performance through Culture, Compensation, and Motivation in Indonesia. Indonesian Journal of Law and Economics Review, 19(2), DOI 10.21070/ijler.v19i2.1112. https://doi.org/10.21070/ijler.v19i2.1112

Copyright (c) 2024 Rani Rahmawati, Hasan Ubaidillah

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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Abstract

In the context of today's advanced economic development, companies aim to create jobs and improve the economy. This study examines the influence of organizational culture, compensation, and work motivation on employee performance at PT. Romi Violeta, a furniture company. Despite extensive research on employee performance determinants, the specific impacts of these factors within the Indonesian furniture industry remain underexplored. This study addresses this gap by utilizing a quantitative method with a sample of 133 employees selected through purposive sampling. Data analysis was performed using multiple linear regression with SPSS version 22. The findings reveal that organizational culture, compensation, and work motivation each positively affect employee performance. Furthermore, when considered together, these factors significantly enhance employee performance. Among them, compensation is the most dominant factor due to the substantial impact of adequate wages on optimizing employee performance. These results suggest that fostering a strong organizational culture, providing fair compensation, and enhancing work motivation are crucial strategies for improving employee performance in similar industrial contexts.

Highlight:

  1. Positive Impacts: Organizational culture enhances employee performance.
  2. Dominant Factor: Compensation most influences employee performance.
  3. Combined Effect: Culture, compensation, and motivation jointly boost performance.

 

Keywoard: Organizational Culture, Compensation, Work Motivation, Employee Performance, Quantitative Analysis

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