Journal of Islamic Economics Perspectives, Volume 1.

Issue 2 (2020)

Role of Work Environment and Organizational Culture

To Job Performance
Arif Rachman Putra
Mila Hariani
Dita Nurmalasari
Moch. Irfan
Yusuf Rahman Al Hakim

Abstract
Improving the quality of human resources is focused on a variety of things that can affect job
performance. There are two variables that are thought to have contributed to the formation of job
performance, namely the work environment and organizational culture. This study aims to
analyze and determine the effect of the work environment and organizational culture on job
performance. The research will be conducted in one of the micro businesses in Kranggan District,
Mojokerto Regency which involves 25 employees to be involved as respondents. Multiple linear
regression analysis is used as an analytical tool to prove the research hypothesis. The research
findings suggest that (1) the work environment has a significant effect on job performance; (2)
organizational culture has a significant effect on job performance; and (3) work environment and
organizational culture simultaneously have a significant effect on job performance.

Keywords: work environment, organizational culture, job performance

Abstrak
Peningkatan kualitas sumber daya manusia difokuskan kepada beragam hal yang dapat
memengaruhi kinerja pegawai. Ada dua variabel yang diduga memiliki kontribusi terhadap
pembentukan kinerja pegawai, yaitu lingkungan kerja dan budaya organisasi. Penelitian ini
bertujuan untuk menganalisis dan mengetahui pengaruh lingkungan kerja dan budaya organisasi
terhadap kinerja pegawai. Penelitian akan dilakukan di salah satu usaha mikro yang ada di
Kecamatan Kranggan Kabupaten Mojokerto yang melibatkan 25 pegawainya untuk dilibatkan
sebagai responden. Analisis regresi linear berganda digunakan sebagai alat analisis untuk
membuktikan hipotesis penelitian. Dari temuan penelitian menyatakan bahwa (1) lingkungan
kerja berpengaruh signifikan terhadap kinerja pegawai; (2) budaya organisasi berpengaruh
signifikan terhadap kinerja pegawai; dan (3) lingkungan kerja dan budaya organisasi
berpengaruh signifikan secara simultan terhadap kinerja pegawai.

Kata-kata kunci : lingkungan kerja, budaya organisasi, kinerja pegawai

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Journal of Islamic Economics Perspectives, Volume 1. Issue 2 (2020)

INTRODUCTION
Human resources are essentially one of the capital and play a very important role in the
success of the organization. Employees are the main assets of the organization and have a strategic
role in the organization. Those who contribute to the formation of organizational performance. In
addition, a very complex internal factor that influences organizational performance is
organizational culture. As human resources, the work lives of employees are greatly influenced
by organizational culture. Organizational culture refers to a system of shared meanings shared by
members that distinguishes the organization from other organizations. This system of shared
meaning, when examined more closely is a set of key characteristics that are held in high esteem
by the organization. Organizational culture has a considerable influence on job performance.
Improving the quality of work in the workplace is a critical aspect and is one of the
organizational performance that is very important for achieving increased productivity,
effectiveness, and efficiency of the organization. The key to the success of quality work life
usually lies in cultural readiness. A feedback information becomes very important and the changes
in the organizational environment have an influence to develop the quality of work life.
Organizational management efforts in accordance with the needs of the implementation of the
mission and objectives of the organization are very dependent on the management strategy of a
broader work culture in the form of a human resource management strategy in the face of change.
In addition, organizational culture helps leaders understand that in conceptualizing organizational
culture, it is necessary to consider the people and environment of the organization as a
complementary part of an organization. The essence of organizational change is directed at
planned and systematic changes starting from changes in the structure and systems within the
organization as a whole, as well as changes in the external environment that lead to efforts to
improve organizational effectiveness in accordance with cultural development and scientific and
technological progress (Schein, 1996).
Conflict that may occur due to organizational culture and work environment that tends to change
is a phenomenon of conflicting interests in the context of organizational behavior that results in a
decrease in the level of job performance. The greater challenge is when employees begin to exhibit
negative behaviors that cause a decrease in work productivity such as loss of employee loyalty to
the organization, loss of work motivation, to complete their duties an employee tends to make
mistakes and reduce employee discipline by often not being present for various reasons. In addition
to the negative influence of organizational change is expected to provide economic benefits for the
organization, can improve communication relationships that are more harmonious between
superiors and subordinates as well as communication between fellow colleagues is expected to run
effectively and efficiently so that later can reduce conflicts that occur and can improve jobs
employee performance.
A pleasant work environment for employees through binding harmonious relationships with
superiors, coworkers, and subordinates, and supported by adequate facilities and infrastructure in
the workplace will have a positive impact on employees so that job performance can improve
(Saidi et al., 2019). The work environment has a very important role to support the organization
of organizational activities. A comfortable work environment is a key driver for employees to
produce optimal performance. Organizations must provide an adequate work environment such
as the physical environment (comfortable office layout, clean environment, good air exchange,
color, adequate lighting), as well as non-physical environment (relationships with superiors,
relationships between colleagues, relations with subordinate).

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To create optimal performance, optimal work improvement is needed and is able to utilize
the potential of human resources owned by employees to create organizational goals. In this case
the role of the organization is needed in enhancing organizational culture and creating a conducive
work environment to encourage the creation of professional attitudes and actions to complete
work in accordance with their respective fields and responsibilities. The performance of
individual employees greatly influences the success of an organization. Good job performance
will cause organizational performance to increase (Sinambela et al., 2019). With the support of
good governance to improve the culture of the organization and an adequate work environment
can provide a better performance boost for employees so that the organization can achieve its
expected goals (Dobre, 2013).
Based on the background of the problems outlined earlier, the writer tries to take the research
topic with the research title as follows: "The Role of Work Environment and Organizational
Culture on Job Performance." The research will be conducted in one of the micro businesses in
the District Kranggan Mojokerto Regency. This research topic shows the objectives to be
achieved in this study are as follows: (1) to determine the effect of the work environment on job
performance; (2) to determine the effect of organizational culture on job performance; (3) to
determine the effect of work environment and organizational culture simultaneously on job
performance.

LITERATURE REVIEW

Work environment
A good work environment will create a good working atmosphere, which in turn has an
impact on job performance. Gunawan (2017) states that the work environment is everything that
exists around a worker and that can influence him to carry out the tasks assigned to him. This is
like a number of physical components such as work space, equipment and work equipment and
so on. In addition, non-physical matters, such as the atmosphere of calm, comfort, beauty and
beauty of the room, the adequacy of light and also includes the relationship with social
interactions that occur at work. Thus, the work environment is essentially a situation and
conditions that are around the workplace. Another opinion states that there are two important
aspects that must be considered from the work environment, namely the workplace itself and the
treatment received from management. Employees feel that certain working conditions are
pleasant when they do something useful that provides a sense of personal benefit. Thus, the work
environment created plays an important role in the organization's ability to achieve its goals
(Mahyanaila, 2016). Schultz and Schultz (2006) state the work environment is a condition that
characterizes the workplace against employee behavior and attitudes related to the changing
situation in the workplace. By creating a healthy and conducive work environment that can
improve job performance to work more optimally, this can directly improve the quality of their
work better. With a good work environment, this will make employees use their time effectively
to complete their work as best they can if the work environment is supportive, otherwise if the
work environment is inadequate it will degrade the employee's performance.
According to Jain and Kaur (2014), work environment has several main aspects, namely
social aspects, mental aspects and physical aspects. Darmawan (2019) stated that important
factors that need to be considered in an organization's work environment are equipment and
facilities, work atmosphere, and workplace conditions. According to Darmawan (2013) such
indicators to measure the work environment are (1) lighting; (2) air circulation; (3) noise; (4)

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security at work; and (5) employee relations. The work environment is very influential on the
work activities of employees in the organization. In addition the work environment also has the
opportunity to influence the most important factors such as efficiency, productivity, work
motivation, job performance and job satisfaction. The organization must really pay attention
seriously to the work environment to support the continuity of the organization.

Organizational culture
According to Kast and Rosenzweig (1990) organizational culture is an important set of values,
beliefs and understandings shared by its members. The values or ideas and beliefs that are shared by
the members are manifested in symbolic symbols such as myths, ceremonies, stories, legends and
special languages. Kreitner and Kinicki (2005) state organizational culture as a form of perception that
is owned and can be logically accepted to determine what employees think and react to a diverse
environment. Organizational culture in an organization serves as a guideline for employee behavior in
their daily work routines so as to lead employees to work. Organizational culture includes solid
guidelines that shape behavior. Organizational culture carries out several important functions such as;
conveys a sense of identity for the members of the organization, facilitates commitment to something
greater than oneself, increases social stability, and provides a basis for opinions held and accepted for
decision making. Gunawan (2017) states that organizational culture is everything that includes beliefs,
attitudes and values held in an organization. Organizational culture in every organization has a
function to form a system of the norm values of a new organization and can be developed to smooth
an organization's goals. Darmawan (2013) states that organizational culture as a set of assumptions or
belief systems, values and norms developed in organizations that serve as guidelines for behavior for
members to overcome the problem of external adaptation and internal integration. Organizational
culture as input consists of the founder of the organization, the owner of the organization, HR,
stakeholders and the community.
According to Schein (2004) the process of cultural formation is closely related in a
characteristic identical to the process of group formation which is very important in 'the group' or
the characteristics of groups - patterns of division of thoughts, beliefs, feelings and values
resulting from the sharing of experience and collectively is what is meant by the cultural end
result of the group, without a group there will be no culture, and without a little culture we only
talk about groups of people, not "the real group" so that group growth and cultural formation can
be seen in two sides of the same coin and both come from leadership activities. Luthans (2011)
provides a description of the characteristics of organizational culture, namely: (a) rules of
behavior that provide guidelines for relationships between organizational members,
communication, terminology, and ritual; (b) norms, in the form of written rules that guide how to
work; (c) dominant values, containing clear conceptions or beliefs about things that are desired
by members of the organization, such as conceptions of values about quality, high efficiency, low
absenteeism, and so on; (d) philosophy, relating to organizational policies regarding how to treat
members of the organization and other interested parties; (e) regulations, containing instructions
on carrying out tasks in the organization; (f) organizational climate, describing the physical
environment of the organization, the behavior of relationships between organizations, as well as
organizational relationships with parties outside the organization.
Organizational culture is a controller that can shape attitudes and behaviors that involve
employees in organizational activities. Organizational culture also functions to take into account
the results achieved in the activities of the organization around the teams, because it is not only
seen in individual employees to support collaboration. Indicators of organizational culture

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according to Denison and Mishra (1995) such as, (1) mission; (2) consistency; (3) adaptation; and
(4) involvement. Culture has a positive influence on the organization if it raises behavior in the
right direction (goal), permeates it widely on members of the organization and puts strong
pressure on the organization to follow the culture that has been set. Sebalknya, culture negatively
affects the organization if it results in the wrong direction. The company's organization has its
own organizational culture which is the guideline of the members of the organization to carry out
internal and external life, and this holding will influence the workings of the organization's
members.

Job Performance
Performance is the actions or implementation of tasks or work that has been
completed by someone within a certain period of time and it can be measured and
standardized (Mahyanaila, 2016). Thus the statement shows the quality and quantity of
work that can be completed individually within a certain period. Darmawan (2019) states
that performance is the result achieved by someone according to the applicable
measures of the job or task for which they are responsible. Usually people with high
performance are referred to as productive people, and conversely people whose levels
do not reach the standards are said to be unproductive or low-performing. Gunawan
(2017) states that performance is the ability of someone trying to achieve better or more
optimal work towards the achievement of goals. Job performance is a driving force for
increasing work productivity and achieving organizational goals (Sinambela et al., 2019).
Basically the purpose of their work will greatly affect their awareness to be able to
improve their respective performance. Without good performance at all levels of the
organization, the achievement of goals and organizational success becomes difficult and
even impossible.
To know job performance, there is a need for standards or benchmarks mentioned by Gunawan
(2017), namely the quantity, quality and timeliness of work. Performance evaluation aims to be
known with certainty whether the achievement of results, progress and obstacles encountered in
carrying out the mission can be assessed and studied to improve the implementation of tasks in the
future. Darmawan (2019) sets six dimensions to measure performance, namely: (1) quality, related
to the results of the implementation of activities that are nearing perfection or approaching the
expected goals; (2) quantity, related to the amount produced, can be measured by the unit, the rupiah,
or the cycle of activities completed; (3) timeliness, taking into account other output conditions and
the time available for other activities; (4) cost effectiveness, the extent to which the use of
organizational resources (human, financial, technological, material) is maximized to achieve the
highest yield or reduction in losses from each unit of resource use; (5) need for supervision, the
extent to which an employee performs work functions without requiring the supervision of a
supervisor to prevent actions that are less desirable for the organization; (6) interpersonal impact, is
the degree to which an employee maintains self-esteem, good name and cooperation with colleagues
and subordinates. Performance appraisal is the process through which organizations assess job
performance. Basically job performance appraisal is a systematic assessment of the work
performance of the employee and of the potential level of the employee in his efforts to develop
himself for the benefit of the organization. So if the performance appraisal is carried out
properly, correctly and in an orderly manner it can help increase work motivation.

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Research Conceptual Framework and Hypothesis

This research will look for the influence of work environment and organizational culture
partially and simultaneously on job performance. For this purpose the conceptual framework of
the study is shown in Figure 1 below.

Figure 1
Research Conceptual Framework
The source is processed by the researcher, 2020

The basis for establishing a hypothesis is based on previous research from Chandrasekar
(2011); Imran et al. (2012); Djuremi et al., (2016); Mardikaningsih (2016); Saidi et al. (2019)
who found that the work environment influences job performance. Besides that from previous
research from Darsana (2013); Shahzad et al. (2013); Djuremi et al., (2016) who found that
organizational culture influences job performance. Based on the theoretical foundation and the
results of previous studies that have been described previously, the hypothesis in this study is (1)
the work environment has a significant influence on job performance; (2) organizational culture
has a significant influence on job performance; (3) the work environment and organizational
culture have a significant simultaneous effect on job performance.

RESEARCH METHODS
Research on the influence of work environment and organizational culture on job
performance using this type of explanatory research because it aims to test hypotheses that have
been formulated previously. Explanatory research or explanatory research is research that seeks
to explain causal relationships and examine the relationships that occur between facts and the
development of human resources on job performance.
The questionnaire was distributed to 25 employees. The sample is a member of the population
that can represent the characteristics of the population. The technique used to take the sample is
total sampling, namely by taking all the population as respondents involved in work activities as
many as 25 people so that the whole sample.
In identifying this variable the writer divides the two variables, namely the independent
variable, the variable whose value affects the value of other variables. In this study the
independent variables are the work environment (X1) and organizational culture (X2) while the
meaning of the dependent variable is the variable whose value depends on the value of other
variables. The dependent variable is job performance (Y). The first independent variable is the
work environment (X1) is everything that is around the employee and that can affect him to carry
out the tasks assigned to him. Indicators of the work environment are (a) work relations in the

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office; (b) employee morale shown; (c) working room condition; (d) work facilities; (e) job
comfort; and (f) cleanliness at work. The second independent variable is organizational culture
(X2) is an important set of values, beliefs and understandings shared by employees. The indicators
consist of: (a) mission; (b) consistency; (c) adaptation; and (d) employee involvement. The
dependent variable is job performance (Y). Job performance is the results achieved by employees
according to the measures applicable to the job or task for which they are responsible. Some
performance indicators are (a) efficient work time, (b) work targets are achieved; (c) quality of
work; (d) quantity of work.
The statistical analysis tool used in this study is multiple linear regression analysis because it
involves two independent variables. To test the quality of the collected data, a validity and
reliability test tool and a classic assumption test will be used. Data collection using a questionnaire
involving Likert scale as a form of preference responses from respondents.

RESEARCH ANALYSIS AND DISCUSSION

Validity and Reliability Test
Validity test results are shown in Table 1 with the provisions declared valid if the value of the
corrected item total correlation is greater than the value of 0.3. Table 1 shows that all research
variables were above 0.3. Thus each item of question on the research variable is declared valid.

Table 1
Validity Test
Indicators Validity Value
X1.1 0,544
X1.2 0,525
X1.3 0,847
X1.4 0,779
X1.5 0,562
X1.6 0,441
X2.1 0,664
X2.2 0,604
X2.3 0,599
X2.4 0,694
Y.1 0,753
Y.2 0,674
Y.3 0,714
Y.4 0,556
Source: SPSS Output

Next is reliability testing to show the extent to which the gauges can be trusted to analyze
data. For the first independent variable namely the work environment (X1) obtained an alpha
value of 0.605; the second independent variable is organizational culture (X2) of 0.625; and the
dependent variable is job performance of 0.677 as shown in Table 2. Thus, the question items
related to the research variables are declared reliable. List of questions about research variables
can be trusted to analyze further data.

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Table 2
Reliability Test
Variables Alpha Value
Work Environment (X1) 0,605
Organizational Culture (X2) 0,625
Job Performance (Y) 0,677
Source: SPSS Output

Classic Assumption Test

Subsequent tests were performed with the classic assumption test consisting of normality,
multicollinearity and autocorrelation tests. Normality test to find out the normal distribution of
data collected. The figure shows that the points follow the diagonal line. The normal distribution
will form a diagonal straight line and ploting data will be compared with the normal line. Thus it
can be said that data distribution is normal.

Figure 2
Normal Probability Plot
Source: SPSS Output

From the multicollinearity test, tolerance values and VIF values were obtained, each of
0.619 and 1.088. This shows that the tolerance value obtained is less than 1 and VIF between 1
and 2 then it can be said that the equation of a research model does not show symptoms of
multicollinearity. From the autocorrelation test the Durbin Watson figure was 1.995. This is no
autocorrelation problem because the number is between values 2 and -2. Thus there is no
autocorrelation problem.

Hypothesis test
To test the hypothesis two measurement tools are used namely the F test and the t test. T
test to test the partial effect of independent variables on the dependent variable. The results of
calculations using SPSS software as shown in Table 3 below.

Table 3
Coefficientsa

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Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
(Constant) .857 2.144 .397 .612
X1 .571 .122 .586 4.600 .000
X2 .418 .127 .413 3.250 .002
Source: SPSS Output

Based on the results of this t test is done by comparing the value of Probability sig. each
independent variable with the specified limit is 0.05. From the comparison results obtained by the
value of P Sig. In the table, the value of 0,000 for the work environment independent variable
(X1) is obtained, and the value of 0.002 for the organizational culture independent variable (X2),
which means it is below the 0.05 limit. Thus it can be stated that at the real level α = 0.05, the
independent variable has a partially significant effect on the dependent variable, namely job
performance. The first and second hypotheses are proven correct.
F test to test the simultaneous effect of the independent variables on the dependent variable.
The results of calculations using SPSS software as shown in the following table.

Table 4
ANOVAb
Sum of Mean
Model Squares df Square F Sig.
1 Regression 72.471 2 36.236 56.543 .000a
Residual 10.245 22 .639
Total 82.728 24
Source: SPSS Output

Based on the results of the F test is done by comparing the value of Probability sig. with the
specified limit is 0.05. From the comparison results obtained by the value of P Sig. In the table, a
value of 0,000 is obtained which means that it is below the 0.05 limit. Thus it can be stated that
at the real level α = 0.05, the independent variable simultaneously influences the dependent
variable. The third hypothesis was proven correct.
After all the hypotheses have been proven correct, a regression equation is formed which is
formed as follows: Y = 0.857 + 0.571X1 + 0.418X2. From this equation, it can be seen that the
dependent variable Y continues to increase by 0.857 along with the increasingly fulfilling of the
work environment free variable (X1) of 0.571 and organizational culture (X2) of 0.418.
From this equation, it can also be determined that the independent variable that has dominant
influence on the dependent variable is the work environment (X1), which is seen from the highest
regression coefficient value among the other independent variables, namely organizational
culture (X2). The value of the regression coefficient of the work environment (X1) is 0.571 or
greater than the regression coefficient of the organizational culture variable (X2) of 0.418. Work
environment variable (X1) is the independent variable that has the most dominant influence on
the dependent variable. The coefficient of determination is shown from the SPSS output as in
Table 5 below.

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Table 5
Model Summary
Adjusted Std. Error of
Model R R Square R Square The Estimate
1 .548a .301 .299 .44965
a. Predictors: (Constant), X2, X1
Source: SPSS Output

Based on the calculation results above, the R square coefficient of 0.301 indicates that there
is a not too strong influence between the independent variable and the dependent variable. The
determinant coefficient of 0.301 indicates that this multiple regression model whose
independent variables consist of work environment (X1) and organizational culture (X2) has
contributed 30.1% to the formation of the dependent variable, namely job performance. While
the remaining 69.9% is determined by other factors.

DISCUSSION
Research findings lead to proof of research hypotheses. The first hypothesis states that the
work environment has a significant effect on job performance. These findings support the
results of previous studies from Chandrasekar (2011); Imran et al. (2012); Djuremi et al.,
(2016); Mardikaningsih (2016); Saidi et al. (2019). This proves that the existence of a good
work environment will increase the enthusiasm and performance of its employees.
Environments in the workplace that have met standards such as lighting, air circulation, safety
and comfort and harmonious social interaction will improve job performance. Employees will
show improved performance and complete the work assigned to them if conditions of work are
comfortable. Empowerment is not only done for human resources, but it should also be done
for the work environment. A work environment that has empowerment will have a positive
impact on job performance (Hariani, 2017). The implication is to create a good environment,
provide services ranging from security and safety at work so that it can provide its own
satisfaction for employees and will improve performance in completing tasks that have been
assigned to him.
The second hypothesis states that organizational culture has a significant effect on job
performance. This finding is also in accordance with the results of previous studies from
Darsana (2013); Shahzad et al. (2013); Djuremi et al., (2016). Organizational culture is
considered important because a strong organizational culture can encourage employees to
continue to improve their performance. The implication is to create good assumptions and good
values for employees where this is intended so that the organization learns to overcome or deal
with problems that can arise due to external adaptation and integration that are already running.
Thus based on the results of the hypothesis test it can be stated that with an optimal work
environment and organizational culture it is expected to form optimal job performance as well.
Diverse employee behavior requires the leadership of an organization to consider all the
situations in which the behavior occurs, including the factors that influence it. In this research,

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it is proven that working conditions such as work environment and organizational culture have
a significant influence on employee behavior and performance.

CONCLUSION
This study aims to determine the effect of the work environment and organizational
culture on job performance. From the research findings described in the previous
chapter, the author will establish several matters related to the conclusions in this study.
The conclusions that can be determined are (1) the work environment has a significant
effect on job performance; (2) organizational culture has a significant effect on job
performance; and (3) work environment and organizational culture simultaneously have
a significant effect on job performance
Based on the results of the discussion and conclusions that have been described,
the authors propose the following recommendations: (1) job performance can be
improved through efforts to improve the quality of the work environment and
organizational culture in line with organizational goals. In addition, this can be realized
through the role of leadership to support any activities related to the development of
quality human resources obtained from the improvement of organizational systems and
procedures; (2) the implementation of task activities strongly implies the need for
improved performance. For employees with the opportunity given by the leadership to
be able to develop their potential related to the overall development of human resources
that they empower. This can be supported through compensation programs in the form
of financial and non-financial as a form of implementing motivational programs derived
from organizational and leadership policies; (3) the organization must continue to shape
the culture of the organization through a variety of policies and behavioral arrangements
for members of the organization so that it is expected to be able to support job
performance to be more optimal and to foster high commitment from employees; (4)
further research can be developed based on relevance to the topic of human resource
management related to work conditions and worker behavior in organizations.

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