CAUSAL EFFECT OF ORGANIZATIONAL CULTURE PERCEPTION ON EMPLOYEE ENGAGEMENT: EMPIRICAL EVIDENCE FROM THE ELECTRONICS INDUSTRY
Keywords:
Causal Effect, Organizational Culture Perception, Employee EngagementAbstract
This research aims to study the causal impact of organizational culture on employee engagement in a manufacturing company in the electronics industry. The sample group used in this research was 300 employees randomly selected from a company located in the central region, and a questionnaire was used as a tool to collect data. Data analysis was conducted using frequency, percentage, mean, standard deviation, and hypothesis testing with a partially least squares structural equation model.
The results of the research found that the perceived organizational culture, including job-oriented culture, person-oriented culture, and team-oriented culture, had a significant positive influence on employee engagement in the electronics manufacturing company with a statistical significance level of 0.000. The three variables together predicted 71.4% of employee engagement. This discovery demonstrates that all three components of organizational culture are crucial in driving and maintaining employee commitment to the organization, particularly in an industrial production system that emphasizes successful work completion according to orders or product demand. Since these products are currently in high demand in the market, it is not enough to have a work-oriented culture to ensure employee commitment to the organization. Rather, a culture that supports individuals and teamwork is necessary for successful human resource management of the organization's essential production capacity.
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