The Effect of Organizational Culture on Employee Performance with Human Malfunction and Knowledge-Based Mistake as Intervening Variables

Abstract

PT. SC Johnson Manufacturing Surabaya produces insecticide products that are well-known to consumers in Indonesia and has a fairly strong image. However, since 2017 the company has experienced a decline in productivity from the original target of 87% and only achieved an average of 82%. This decrease in productivity is because there are still many defective products and a lot of waste, such as waiting, over-processing, transportation, unnecessary movements, over-inventory, etc. This was identified due to human errors in the form of human errors and knowledge-based mistakes in implementing organizational culture at work through the SEM method, with as many as 180 respondents from employees of PT. SC Johnson, the result is that the influence of organizational culture on employee performance is directly greater than mediated by human malfunctions and knowledge-based mistakes. Human malfunction variables need to be corrected. Employees are still used to working with the old procedures. These employees need more self- confidence and are the source of problems that must be addressed. Meanwhile, in the knowledge based error aspect, a significant indicator in reducing employee employment is that employees experience difficulties in solving specific problems, have less self-confidence, and carry out work according to wrong rules.