Page 1 of 17
Archives of Business Research – Vol. 11, No. 1
Publication Date: January 25, 2023
DOI:10.14738/abr.111.13814.
Fatma, K., Latif, M., Wijaya, M. H., Nilasari, B. M. & Nisfiannoor, M. (2023). The Effect of Work Environment, Reward, and
Organization Culture on Employee Performance Through Job Satisfaction as Intervening Variables. Archives of Business Research –
Vol. 11(1). 68-84.
Services for Science and Education – United Kingdom
The Effect of Work Environment, Reward, and Organization
Culture on Employee Performance Through Job Satisfaction as
Intervening Variables
Kurnia Fatma
Magister Management, Faculty of Business and Economics,
Universitas Trisakti, Indonesia
Muhamad Latif
Magister Management, Faculty of Business and Economics,
Universitas Trisakti, Indonesia
Mochamad Hadi Wijaya
Magister Management, Faculty of Business and Economics,
Universitas Trisakti, Indonesia
B. Medina Nilasari
Magister Management, Faculty of Business and Economics,
Universitas Trisakti, Indonesia
M. Nisfiannoor
Magister Management,Faculty of Business and Economics,
Universitas Trisakti, Indonesia
ABSTRACT
The purpose of this empirical study is to analyze the influence of the Work
Environment, Rewards, Organizational Culture on Employee Performance which is
mediated by Job Satisfaction. The data used in this research is primary data taken
by distributing questionnaires using a purposive sampling method involving 190
frontliner employees of state-owned banks in South Jakarta, Indonesia. The
analytical tool in this study is Structural Equation Modeling (SEM) using AMOS
version 24. The results of this study are that there is a positive and significant effect
of work environment and rewards on job satisfaction, but organizational culture
has no effect on job satisfaction, there is a positive and significant effect work
environment and job satisfaction on employee performance, but rewards and
organizational culture have no effect on employee performance. there is a positive
and significant effect of work environment and rewards on employee performance
through the mediation of job satisfaction. However, organizational culture has no
effect on employee performance through the mediation of job satisfaction. From the
results of this study, it is recommended that state- owned banks should provide a
clean and comfortable workplace for frontliner employees, and encourage
supervisors to appreciate the work of frontliner employees by giving praise or
recognition.
Page 2 of 17
69
Fatma, K., Latif, M., Wijaya, M. H., Nilasari, B. M. & Nisfiannoor, M. (2023). The Effect of Work Environment, Reward, and Organization Culture on
Employee Performance Through Job Satisfaction as Intervening Variables. Archives of Business Research – Vol. 11(1). 68-84.
URL: http://dx.doi.org/10.14738/abr.111.13814
Keywords: Employee Performance, Job Satisfaction, Work Environment, Reward,
Organizational Culture.
INTRODUCTION
A bank is a financial institution that acts as an intermediary for transactions between
parties who have funds and parties who need funds and has a function as payment traffic,
(Ameswari et all, 2021).
Frontliner employees have an important role in a bank. frontliner is a job title whose job is to
deal directly with customers, must look and behave well regardless of the customer's social
or economic status because it reflects the company's image.
Performance is the output produced by the functions or indicators of a job or a profession
within a certain time (Wirawan et al, 2019). In this increasingly competitive banking world,
companies must be able to create employee performance with high integrity so that
companies can grow. Job satisfaction can be a benchmark for employee performance (Iqbal
et all, 2021). Thus, increasing the variables that can increase employee job satisfaction is very
important.
Work environment is one of the factors that influence employee performance. Kasmir (2016)
specifically the work environment has two conditions, namely the physical and non-physical
environment, both of which have a direct effect on employee performance.
Apart from the work environment, another factor that affects employee performance
according to (Apriyanti, 2021) is rewards. Reward or appreciation is basically something in
return given to someone as recognition for work done, service, and effort or achievement,
(Kadarisman, 2012).
Another factor that influences employee performance is organizational culture (Kasmir,
2016). organizational culture can influence organizational effectiveness and performance, by
creating a good organizational culture, better employee performance will be formed (Ekawati
et all, 2021).
LITERATURE REVIEW EMPLOYEE PERFORMANCE
Employee performance is a record of work/activities achieved during a certain period of
time. Employee performance shows how much each employee contributes to the company,
in terms of work attendance, quantity and quality of output, period to produce output, and
cooperative attitude (Ariawaty, 2020). Employee performance is the ability of an employee
to achieve certain tasks that are measured accurately based on predetermined standards
(Samantha & Daar, 2018). A study by Khan et al (2017) contains an opinion regarding
employee performance as an important element of a company, a prerequisite for achieving
company goals. In other words, employee performance directly affects the company's
progress and efficiency.
Job Satisfaction
Job satisfaction is an individual's attitude towards work (Steele and Plenty, 2015).
Meanwhile, according to Sunaryo and Suyono (2013) job satisfaction refers to the attitude of
Page 3 of 17
70
Archives of Business Research (ABR) Vol. 11, Issue 1, January-2023
Services for Science and Education – United Kingdom
employees towards their work. According to Smith & Shields (2013), having a positive
experience in an organization can influence job satisfaction factors. Job satisfaction is also an
attitude that reflects individual expectations of work and life goals (Jange & Gavali, 2014).
Work Environment
The work environment is a place where employees carry out their duties and is a working
condition of employees who live and work together and continuously and produce
memorable actions in carrying out each task and job (Edward, 2020). The work environment
is everything that is around workers who can influence themselves in carrying out and
completing the work or assignments given (Firman Hakim, 2018). The work environment is
an environment where employees do their daily work (Dwi, 2015).
Reward
Reward is one of the important tools for organizations to motivate their employees at work
or within the organization. In this global era, every organization needs to have employees
who are competent and motivated, so that the organization can survive in the market or in
business. Therefore it is important for organizations to know what motivates their employees
so that employees can provide the best for the organization (Onuegbu, Ngige 2018) . Reward
is a management control mechanism that ensures that every individual in the organization
carries out their activities according to what the organization expects (Merchant & Stede,
2017). Rewards are awards for performance or good deeds that have been carried out by
employees (Suparmi & Septiawan, 2019).
Organizational Culture
Organizational culture is defined as a field for understanding and explaining and ending with
the formation of attitudes and behavior of individuals and organizational groups (Sekaran,
2014). Organizational culture is also defined as a belief and idea about what kind of goals
should be pursued by company members, and ideas about the right type or standard of
behavior that should be used to achieve goals (Jepkorir et al. 2017).
According to Maitland et al (2019), there are three perspectives related to organizational
culture, the first perspective explains the nature of organizational commitment, the second
perspective aims to analyze how the definition and application of organizational culture, the
third perspective is where organizational culture can influence organizational performance.