Title:
THE EFFECT OF ORGANIZATIONAL CULTURE AND WORK ENVIRONMENT ON EMPLOYEE PERFORMANCE WITH WORK MOTIVATION AS A MEDIATION IN ISLAMIC BANKING IN BANDA ACEH

Authors:
Nora Akhsa*, Hafasnuddin, Ahmad Nizam, Indonesia

Abstract:
This research aimed to see the Organizational Culture and Work Environment's impact on Employee Performance, and how employee work motivation mediates in the model. Sampling used the probability sampling method using a census. The research method used was a quantitative method by distributing 102 questionnaires in electronic and hard copy form to Bank Aceh Syariah (BAS) Banda Aceh Branch employees. The data analysis technique used was Structural Equation Modelling (SEM). This study’s results revealed that Organizational culture affected motivation, environment affected motivation, Organizational culture affected employee performance, environment did not affect employee performance, Motivation affected Employee Performance, Motivation mediated the Organizational Culture’s impact on Employee Performance, Motivation mediated the Work Environment’s on Employee Performance. Motivation in these findings was also proven to function as a partial mediator in the culture affecting employee performance, and as a full mediator in the environment affecting employee performance. These findings explain that the model has been verified, where the model for improving employee performance at BAS is based on suitability to organizational culture, a work environment that supports performance, and high employee motivation. This model is a premise that can be used in the development of advanced theory through further research, and is a basis for practitioners, especially BAS, to formulate strategies to improve their performance.