The Effect of Competence and Organizational Culture on Employee Performance through Employee Engagement

Abstract

This study aims to analyze the influence of competence and organizational culture on employee performance, analyze the influence of competence and organizational culture on employee engagement, analyze the influence of employee engagement on employee performance, and analyze the influence of competence and organizational culture on employee performance through employee engagement of Perumda Air Minum Pemalang. The population in the study were all employees of Perumda Air Minum in Pemalang, totaling 230 people. Sampling was determined using the Slovin formula so that a sample size of 147 employees was obtained. The data analysis technique used SEM-PLS. The results of the analysis showed that competence and organizational culture had a positive and significant effect on employee performance. Competence and organizational culture had a positive and significant effect on employee engagement. Employee engagement had a positive and significant effect on employee performance. The results of the mediation analysis showed that employee engagement was able to mediate the influence of competence and organizational culture on employee performance. Thus, increasing competence and strengthening organizational culture supported by high employee engagement can improve the performance of Perumda Air Minum Pemalang employees.