American Journal of Economic and

Management Business

e-ISSN: 2835-5199

Vol. 2 No. 3 March 2023

Literature Study of the Effect of Corporate Culture on Work

Motivation and Employee Performance

Ayundah Riani, Vanya Raghdatul Asya, Fachrizal Satrio Putro Yuwono

Universitas Pembangunan Jaya, Indonesia

Email: [email protected],[email protected],

[email protected]

Abstract

Corporate culture has a relationship to employee motivation, the better the corporate

culture, the higher the level of work motivation possessed by employees. Furthermore,

it was found that corporate culture also has a relationship with employee performance,

where if the corporate culture is getting better it can have an effect on improving

employee performance. This is of course in line with the theories and studies that have

been spread and form the basis that the motivation and performance of a company's

company have an influence on the company's culture. Therefore, the authors decided to

discuss further about the relationship between corporate culture and employee

motivation and performance which can be assessed through several general indicators

that will be discussed in this article.

Keywords: Company Culture, Work Motivation and Employee Performance.

This article is licensed under a Creative Commons Attribution-ShareAlike 4.0

International

INTRODUCTION

Identification with specific, clear company goals can help employees feel more

connected to those goals and the company's goals (Sinambela, 2021). This can increase

employee motivation and performance because they believe their work has a greater

purpose and purpose. A more effective form of communication will encourage less

chaotic and urgent communication, which can help create a more harmonious work

environment and foster trust between employees and management (Mardiana, 2013).

This can increase employee motivation and improve their performance, as they feel

supported and valued. Increased employee engagement encourages employees to

participate as well as provides opportunities to improve business processes (Susyanto,

2019).

More effective forms of communication will lead to more chaotic and urgent

communication, which can help create a more harmonious work environment and foster

trust between employees and management (Astuti & Iverizkinawati, 2019). Employees

feel valued and ignored in their careers, and are able to absorb new information and

understanding gained at work. A healthy work environment can improve worker

performance and productivity (Ghoniyah, 2011). This applies to a physically and

American Journal of Economic and Management Business

Vol. 2 No. 3 March 2023

psychologically healthy workplace. Those who are honest, ethical, and fairly

compensated tend to be more motivated and have better jobs.

The large number of employees who change places can be caused because the

company culture is lacking or not in line with these employees. Organizational culture

is defined as 'the pattern of basic assumptions that a particular group creates, discovers,

or develops in learning to deal with problems of external adaptation and internal

integration – patterns of assumptions that have worked well enough to be considered

valid and, therefore, to be taught. to new members as the correct way to see, think, and

feel in relation to those problems'. And Organizational Culture can also be said as the

identity of organizational members and the social glue that unites the organization

(Yumuk & Kurgun, 2020).

According to (Supardi, 2003), corporate culture is values that are a catalyst for

human resources in advancing their obligations and behavior within the organization.

Motivation is the driving force that compels a person to perform an action should be

considered to encourage employees who are satisfied with their current job to reach the

next stage of their career path, and to achieve higher performance. Work motivation will

have a positive effect on employee performance (Kongcharoen et al., 2020). Employee

performance is the contribution made by employees to the company which can be

identified from the work of employees. the performance of individual employees is a

factor that influences the success of an organization (Safitri, 2018).

Research on employee performance and the factors that influence it is based on

the fact that employee performance is a crucial factor that must be considered by

companies, because employee performance is a determinant of overall performance.

Employees who have high performance will mobilize all their potential to complete the

work carried out in accordance with the standards set. both in terms of quality, quantity,

and time standards. Conformity of work performed by employees with predetermined

performance standards.

This research was carried out with the support of theoretical and empirical studies

as well as facts in the field which are interesting phenomena to study. In addition, from

the results of previous studies, there are several variables that influence employee

performance, which still show different results, even contradicting the results of one

study and the results of another study. This is the research gap in this study, so it is very

interesting and further research is needed related to this research gap (Sasongko et al.,

2022).

RESEARCH METHODS

In collecting data, the authors rely on library research, namely through gathering

information about how motivation and work habits of employees affect business ethics.

According to (Sugiyono, 2017) data analysis is the process of systematically searching

and compiling data obtained from extracting data and then organizing it into several

categories so that it is easily understood by oneself and others. Artistic data is also

called qualitative because the data obtained is patterned and naturalistic in nature, as it

is (Sugiyono, 2017).

RESULT AND DISCUSSION

In the research journal "The influence of corporate culture on work motivation

and its impact on employee performance" written by (Safitri, 2018) has a research

Ayundah Riani, Vanya Raghdatul Asya, Fachrizal Satrio Putro Yuwono

objective, namely to determine the extent to which corporate culture influences work

motivation and its impact on employee performance.

The results of this study indicate that corporate culture influences work

motivation. This means that if the corporate culture is improved, then work motivation

will also increase. Work motivation affects employee performance. This means that if

work motivation is increased, then employee performance will also increase. Corporate

culture influences employee performance. This means that if the corporate culture

increases, then employee performance will also increase.

The results of business analysis of a company that has been very successful

recently, the main indicator is the level of excellence in their customer service. Thus,

business influences employee motivation (Hardiyansyah, 2018). Very strong work

motivation, has the most important indicator is recognition. However, the work done by

an employee is still very demanding. This positive work motivation will also increase

the level of employee satisfaction. The main indicator of increased productivity is

quantity. On the other hand, working days still matter. By following these guidelines,

the company has a positive relationship with the employee's work.

In the research journal "The Influence of Organizational Culture and Work

Motivation on Employee Performance" written by (Anggraini et al., 2020) the research

objective is to analyze the Effect of Organizational Culture and Work Motivation on

Employee Performance.

The results obtained state that organizational culture and work motivation affect

employee performance. Organizational culture has a dominant influence on employee

performance (Wardani et al., 2016). Based on the results of the study, it is estimated that

over time, organizational development goals will become more realistic and able to

express themselves honestly and fully. In addition, it is necessary to conduct reward-

based training for employees, either through the provision of educational materials,

career-related performance standards, or training tailored to the unique needs of each

employee in order to increase employee motivation.

The results of the analysis and discussion regarding the impact of organizational

factors and motivation on work, organizational structure and motivation affect

employee performance. Organizational culture and motivation have a causal and

significant effect on employee performance with a positive or constructive relationship.

Organizational culture has insights regarding domination of how employees work.

In the research journal "The Influence of Organizational Culture on Work

Motivation and Employee Performance" written by (Sasongko et al., 2022) the research

objective is to examine the effect of organizational culture on employee motivation and

performance.

The results of the study concluded that organizational culture influences employee

motivation, the better the organization, the higher the level of employee motivation.

Furthermore, it was found that organizational culture and work motivation also affect

employee performance, and if organizational culture and motivation increase, they can

contribute to increased employee productivity (Jufrizen et al., 2021). Organizational

culture affects employee motivation, organizational culture influences employee

performance, work motivation influences employee performance.

American Journal of Economic and Management Business

Vol. 2 No. 3 March 2023

CONCLUSION

The company has the power to influence a person's attitude, behavior and way of

thinking. The organizational structure consists of employees with various descriptions

that vary in various contexts, such as nation or ethnicity, religion or belief. When all

employees in the company are involved in ensuring that employee welfare is upheld,

everyone in the company can work together to achieve the goals set by the company. A

company needs to have a unique and independent corporate culture that can encourage

every employee to achieve business goals.

Everyday organizations are capable of having various motivational factors for

employees at every level or level. At all times, employees work harder to achieve

organizational goals if they see themselves as part of the company. The different

working days that operate in one company can also affect the employee's work path.

According to this paragraph, it can be concluded from the data that the various

types of organizational units that make up multinational corporations have cultural

units, and all these units have important components for achieving organizational

effectiveness that contribute to their success.

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Ayundah Riani, Vanya Raghdatul Asya, Fachrizal Satrio Putro Yuwono (2023)

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AJEMB – American Journal of Economic and Management Business