Organizational Culture, Employee Motivation, Workload and
Employee Performance: A Mediating Role of Communication
MAHDANI IBRAHIM1, JUMADIL SAPUTRA2, MUHAMMAD ADAM1, MUKHLIS YUNUS1
1Department of Management, Faculty of Economics and Business,
Universitas Syiah Kuala, Darussalam, Banda Aceh, Aceh,
INDONESIA
2Department of Economics, Faculty of Business, Economics and Social Development,
Universiti Malaysia Terengganu, 21030 Kuala Nerus, Terengganu,
MALAYSIA
Abstract: - This study investigates the mediating role of communication in the relationship between
organizational culture, employee motivation, and workload on employee performance in Batam Port
Management Partnership and Business Development Section, Indonesia. The study used a quantitative
approach involving 50 Batam ports, Indonesia. A total of 150 respondents participated in this study and were
collected by distributing the questionnaire. The data were analyzed with structural equation modelling partial
least square (SEM-PLS). The result of this study indicated that organizational culture and communication have
a significant positive relationship with employee performance. Besides that, motivation and workload do not
significantly affect employee performance. Also, communication mediates the relationship between workload
and employee performance. In conclusion, the present study proved that communication is a significant factor
in determining employee performance and plays a significant role as mediating variable between workload and
employee performance. This study contributes significantly to the theory and government policy regarding
human resource development. In addition, this study can assist the Batam port in increasing employee
performance through communication.
Key-Words: Organizational Culture, Employee Motivation, Workload, Communication, Performance
Received: June 11, 2021. Revised: December 17, 2021. Accepted: January 3, 2022. Published: January 4, 2022.
1 Introduction
Human resource plays a crucial role in the
organization. Human resource needs special
attention, management, handling, and treatment due
to their role in implementing the policies and
company operational activities to achieve the
organization's target. Human resource management
is planning, coordinating, implementing, and
supervising procurement, development,
remuneration, integration, maintenance, and
separation of labour to achieve organizational goals.
Batam port is an operator in the free trade area.
It is in line with a joint decree of Transportation
and the Head of the Batam Free Trade and Port
Management Agency Number: KP 994 of 2017 and
Number: 1456/SPJ/KA/11/2017, managed by the
Batam Authority (Batam Concession Agency). The
role aims to achieve the goal of making Batam one
of the locomotives of national development. The
legal principle for the operation of Batam port is
attached to one of the main tasks of the Batam
Authority (BP Batam), which Presidential Decree
mandates No. 41 of 1973, which chronologically
described as follows:
In 1971, the Central Government designated the
island of Batam as a private industrial area with
Presidential Decree No. 74 of 1971 to facilitate
Pertamina's activities, logistical bases, and
operations. With the government's strong
commitment to developing Batam island as an
industrial and trading area, the Presidential Decree
No. 41 of 1973 was last amended to No. 113 of
2000. The president mandated 5 (five) main tasks to
the Batam authority: (i) to plan, develop and control
the development of Batam Island as an industrial
area. (ii) Transhipment activities on the island of
Batam. (iii) The need for infrastructure and
operation of infrastructure installations. (iv)
Examining applications for business licenses and
submitting them to the relevant agencies, and (v)
Ensuring that licensing procedures run smoothly to
foster investment interest.
The vision of the Batam Port Management
Agency is to make the Batam region the leading
economic area of the Asia Pacific and a major
contributor to national economic development. At
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DOI: 10.37394/23207.2022.19.6
Mahdani Ibrahim, Jumadil Saputra,
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the same time, the mission of the Batam Port
Management Agency is to realize Batam Island as
an export-oriented green industrial area and realize
Batam Island as a superior marine tourism area and
international trade transhipment. The current study
investigates the mediating role of employee
communication in the relationship between
organizational culture, employee motivation, and
the workload on employee performance in Batam
Port Management Partnership and Business
Development Section, Indonesia.
2 Literature Review
2.1 Organizational Culture
Culture is an attitude, norms, values and ways of
thinking humans learn throughout their lives[1].
Also, culture is a set of shared meanings and values
that state a common form of life, and there are as
many cultures as the number of meanings and
values [2]. The organization is used as a place where
the people work together in a rational, systematic,
planned, organized, guided, and controlled in
utilizing the resources (money, materials, machines,
methods and the environment), infrastructure, data
and others that are used efficiently and effectively to
achieve organizational goals [3].
The organization is a system of roles, the flow of
activities and processes (work relationship patterns)
and involves several people as executors of tasks
designed to achieve common goals [4]. Also, Chia
[5] stated that an organization is a consciously
coordinated social entity consisting of two or more
people with relatively identifiable boundaries, which
function in an ongoing manner to achieve a common
set of goals.
Therefore, Lok & Crawford [6] stated that
organizational culture is "a term used to contain a
series of behavioural variables. It refers to values,
beliefs, and main principles that act as a basis for an
organizational management system [7], [8]. At the
organizational level, organizational culture is the
assumptions, beliefs, values, and perceptions shared
by organizational members that shape and influence
attitudes, behaviour, and instructions for solving
problems [9], [10].
According to Lok & Crawford [6] and Tesluk,
Farr & Klein [9], indicators of organizational culture
consist of (i) innovation, and risk-taking means that
an innovative attitude and the courage to take risks
must exist within the organization. (ii) Attention to
detail means that the organization must pay
attention to all provisions, analyze, and pay more
attention to things. (iii) Result orientation focuses on
results or income rather than the techniques and
processes used to achieve these results. (iv)
Individual orientation is defined as considering the
effect of results on employees in the organization.
(v) Team orientation is the ability to work in a team.
(vi) Aggressiveness that individuals or people
within the organization have a competitive nature,
and (vii) Stability means that organizational
activities are emphasized to maintain the status to
continue to grow and develop.
2.2 Motivation
According to AbdiMohamud, Ibrahim & Hussein
[11], motivation is the key to a successful
organization to maintain work continuity in the
organization in a strong way and help to survive.
Motivation is to provide appropriate guidance or
direction, resources, and rewards to inspire an
interest in working in the desired way. Motivation is
a factor that encourages a person to do a certain
activity. Therefore motivation is often interpreted as
a driving factor in one's behaviour [12]. According
to Urošević, Milijić, Đorđević-Maljković &
Karabašević [13], stated that indicators of employee
motivation are: (i) Responsibility - Have high
personal responsibility for their work, (ii) Job
performance - Doing something/work as well as
possible, (iii) Opportunities for advancement - The
desire to get a fair wage according to work, (iv)
Recognition of performance - The desire to get a
higher wage than usual and (v) Challenging work -
The desire to learn to masterwork in their field.
2.3 Workload
The workload is the volume of work results or
records of work results that can show the volume
produced by several employees in a certain section
[14]. Also, workload defines as a condition of work
with job descriptions that must be completed within
a certain time limit [15]. Meanwhile, Jung & Jung
[16] define the workload as something that arises
from the interaction between the demands of
environmental tasks. Work where it is used as a
workplace. In addition, Fritz & Sonnentag [17]
added that too much workload could cause tension
in a person, causing stress. It could be due to the
high level of expertise demanded, the work speed
may be too high, the work volume may be too much
and so on. Workload indicators are (i) Task
Demands - namely, the workload, which can be
determined from an analysis of the tasks performed
by employees. However, individual differences are
considered. (ii) Effort-The amount spent on a job
may be a naturally intuitive form of workload.
However, since there has been an increase in task
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demands, individuals may not be able to increase
their level of effort and (iii) Performance-Most of
the studies on workload are concerned with the
performance to be achieved.
2.4 Communication
Communication is the process of conveying an idea
from one person to another [18]. Also, Schement
[19] added that communication is transmitting
information, ideas, emotions, skills, and so on by
using symbols- symbols, words, pictures, figures,
graphics, etc. The act or process of transmission is
what is commonly called communication.
Meanwhile, Stern [20] added that communication
occurs when a source delivers a message to the
recipient with a conscious intention to influence the
recipient's behaviour.
In addition, Elving [21] defines communication
as the exchange of information between senders and
receivers and conclude perceptions of the meaning
of something between the individuals involved.
Thus, communication is the process of delivering
information from one party, be it individuals, groups
or organizations, as a sender to another party as a
receiver to understand, and there are opportunities to
respond to the sender. Communication indicators to
be effective include: Understanding, which is the
ability to understand messages accurately as
conveyed by the communicator. In this case, the
communicant is said to be effective if he can
understand correctly. Meanwhile, communicators
are said to be effective if they convey the message
carefully. Enjoyment, if the communication process
is successful in conveying information, can also take
place in a pleasant atmosphere for both parties. The
purpose of communicating is not just a message
transaction, but it is also intended for pleasant
interaction to foster human relationships.
Effect on attitude: If a communicant receives a
message, then his attitude changes according to the
message's meaning. The act of influencing others is
part of everyday life in an office. In many situations,
we try to influence the attitudes of others and try to
get others to be as positive as we want them to be.
The relationship is getting better, which accidentally
increases interpersonal relationships, and it will
become effective communication. In offices,
communication often occurs not to convey
information or to influence attitudes alone, but
sometimes there is an implicit intention, on the other
hand, namely, to build good relationships.
2.5 Performance
Performance is an actual behaviour that each person
displays as a work achievement produced by
employees following their role in the company [22].
Another definition is also expressed by Gillet [23],
which defines performance, which describes
employees' work results following their role in the
organization. According to Armstrong & Baron
[24], performance is defined as the result of work
that has a strong relationship with the goals of
organizational strategy, customer satisfaction and
contributes to the economy. Thus, performance is
about doing the job and the results achieved from
that work. Performance contains meaning about
what is done, how to do it and the work results.
According to Razak, Sarpan & Ramlan [25],
performance is the activities output in quality and
quantity achieved by an employee in carrying out
his duties by the responsibilities assigned to them.
Meanwhile, according to Freeman [26],
performance is the work that can be achieved by a
person or group of people in an organization,
according to their respective authority and
responsibility, to legally accomplish the
organization's objectives, not violating the
organization's objectives law with morals and ethics.
In addition, Koopmans, Bernaards, Hildebrandt, de
Vet & van der Beek [27] added six indicators for
measuring individual employee performance:
quality, quantity, on-time, effectiveness,
independence and work commitment.
2.6 Research Framework
Fig. 1: Research Framework.
2.7 Hypothesis
Based on the research model above, the proposed
hypotheses as follows:
H1: Organizational culture has a significant effect
on employee performance.
H2: Motivation has a significant effect on employee
performance.
H3: Workload has a significant effect on employee
performance.
H4: Communication has a significant effect on
employee performance.
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H5: Communication mediates the relationship
between organizational culture and employee
performance.
H6: Communication mediates the relationship
between employee motivation and employee
performance.
H7: Communication mediates the relationship
between workload and employee performance.
3 Research Methodology
A population is a group of people, events,
something that has certain characteristics [28]. It is
an area of generalization that occurs from objects or
subjects that become certain quantities and
characteristics that researchers determine to study
and draw conclusions, so the population is people
and objects and other natural objects. The
population is also not just the amount that will exist
in the object or subject being studied but includes all
the characteristics or properties of that subject or
object. The population in this study amounted to
150 employees in the division of business
development and Batam port management
partnerships.
In general, a good sample can represent as many
population characteristics as possible. The study
sample used a census of 150 respondents of the
Batam Port Management Partnership and Business
Development Division. The primary data were
collected by distributing the questionnaire through a
census approach. The data were analyzed with
structural equation modelling partial least square
(SEM-PLS).
4 Results and Findings
4.1 Demography
Batam Port Management Agency is a port operator
in the free trade area and free port of Batam
according to a joint decree of Transportation and the
Head of the Batam Free Trade and Free Port
Management Agency Number: KP 994 of 2017 and
Number: 1456 / SPJ / KA / 11/2017, managed by
the Batam Authority (Batam Concession Agency). It
intended to achieve the goal of making Batam one
of the locomotives of national development. The
legal principle for the operation of Batam port is
attached to one of the main tasks of the Batam
Authority (BP Batam), which Presidential Decree
mandates No. 41 of 1973 which can be
chronologically described as follows: In 1971, the
island of Batam was designated by the Central
Government as a private industrial area with
Presidential Decree No. 74 of 1971 to facilitate
Pertamina's logistical and operational base activities.
In accordance with the strong commitment of
the government to advance Batam Island as an
industrial and trading area, the Presidential Decree
No. 41 of 1973, which was last amended to
Presidential Decree No. 113 of 2000, mandates 5
main tasks to the Batam Authority, i.e., to plan,
develop and control the development of Batam
Island as an industrial area. Transhipment activities
on the island of Batam. The need for infrastructure
and operation of infrastructure installations.
Examining business license applications, submitting
them to the relevant agencies, and ensuring that
licensing procedures run smoothly to foster
investment interest.
4.2 Measurement Model
As mentioned previously, we use SEM-PLS to
achieve the proposed objectives and hypotheses.
Before embarking on the structural model, in the
first step, we conducted the measurement model.
The measurement model consists of loading factor,
validity (convergence validity-Average Variance
Extracted) and reliability (Cronbach Alpha, Rho_A,
Composite reliability). The result of the
measurement model by using the PLS Algorithm
technique, as seen in Figure 2 below:
Fig. 2: The result of the measurement model by
using the PLS Algorithm technique
4.3 Validity and Reliability
Internal consistency is an analysis to assess the
validity of items, and the reliability of
measurements are used. This study uses Cronbach
Alpha, Rho_A and Composite reliability to identify
whether the items are valid and measurements are
reliable. In addition, we utilize the convergence
validity by using Average Variance Extracted
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(AVE), it aims to assess the discriminant validity
based on the following "rule of thumb": the positive
square root of the AVE for each of the latent
variables should be higher than the highest
correlation with any other latent variable
The criteria for good construct reliability according
to [29] can be seen from the value of composite
reliability > 0.60 and AVE > 0.50 [30].
Table 1. The Result of Validity and Reliability
Variable
CA
Rho_A
AVE
Organizational Culture
0.965
0.966
0.853
Motivation
0.904
0.912
0.676
Workload
0.924
0.926
0.726
Communication
0.912
0.919
0.698
Performance
0.865
0.940
0.648
Note: CA (Cronbach's Alpha), Composite Reliability (CR) and
AVE (Average Variance Extracted)
Table 1 shows the result of validity and
reliability testing. The Organizational Culture
variable has a composite reliability value of 0.972>
0.600. Then, motivation has a composite reliability
value of 0.926 > 0.600. Workload has a composite
reliability value of 0.941> 0.600. Communication
has a composite reliability value of 0.932 > 0.600
and Performance has composite reliability value of
0.914 > 0.600. Thus, it can be concluded that all
variables involved are valid and reliable.
4.4 Structural Model
The structural model can be assessed by using
coefficient determination (R-square). R-Squares
values can be used to explain the effect of
exogenous latent variables on whether endogenous
latent variables have substantive effects. R-Squares
values of 0.75, 0.50, and 0.25 reflect that the model
is strong, moderate, and weak. The following results
of the R-The R-Square values, as seen in Table 2
below:
Table 2. The result of the coefficient determination
(R-Square) and Effect Size (f-Square)
Variable
R-Square
f-Square
Communication
0.885
0.895
Performance
0.782
Table 2 shows the result of coefficient
determination using (R-Square). The table above
depicted that the organizational culture, motivation,
workload, and communication can be explained by
employee's performance as much as 78.2%. In
comparison, other variables explain the remaining
21.8% are not included in this model. Whereas
communication produces the R-square value is
0.885, communication explains the organizational
culture, motivation, workload at 88.5% and the
remaining 11.5% is explained by other variables not
considered in this model. Also, Cohen [31] provided
the power table and sample size calculation based
on the table in the PLS book. He looked at effect
sizes (small, large, medium). From the result of
analysis for f-square, we can conclude that the effect
size categorized as large.
4.5 Hypothesis Testing
Hypothesis testing is done through the bootstrapping
process with Smart PLS. Hypothesis testing is
accepted when using probability (P-Values) <0.05.
The results of the bootstrapping process with
SmartPLS, as seen in Table 3:
Table 3. Hypothesis Testing (Direct Effect)
Variable
Coefficient
T-Stat
P-Values
ORC
0.429
2.946
0.003
EMT
- 0.061
0.310
0.757
WLD
- 0.235
0.957
0.339
COM
0.817
3.461
0.001
Dependent variable: EPR (Employee Performance)
Note: ORC (Organizational Culture), EMT (Employee
Motivation), WLD (Workload), COM (Communication)
Table 3 shows the Organizational Culture with
Performance has a P value of 0.003 <0.05 with a
statistic of 2.946> 1.96. The organizational culture
has a significant direct influence on the performance
of employees of the Batam Port Management
Business Development and Partnership Section.
Motivation with performance has a P value of
0.757> 0.05 with a statistic of 0.310> 1.96.
Motivation has a direct and insignificant influence
on the performance of employees of the Batam Port
Management Business Development and
Partnership Section.
Workload with performance has a P value of
0.339> 0.05 with a statistic of 0.957> 1.96. Then the
workload has a direct and insignificant influence on
the performance of employees of the Batam Port
Management Partnership and Business
Development Section and Communication with
Performance has a P value of 0.001 <0.05 with a
statistic of 3.461> 1.96, so communication has a
significant direct influence on the performance of
employees of the Batam Port Management Business
Development and Partnership Section
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Mahdani Ibrahim, Jumadil Saputra,
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Table 4. Hypothesis Testing (Indirect Effect)
Variable
Coefficient
T-Stat
P-Values
ORCCOM
EPR
-0.104
0.858
0.391
EMT COM
EPR
0.265
1.565
0.118
WLD COM
EPR
0.614
3.443
0.001
Dependent variable: EPR (Employee Performance)
Note: ORC (Organizational Culture), EMT (Employee
Motivation), WLD (Workload), COM (Communication)
Table 4 displays the result of hypothesis testing
for the indirect effect or mediating test.
Communication does not mediate the relationship
between organizational culture and employee
performance with the value of regression coefficient
is -0.104, t-stat is 0.858, and P-value is 0.391 or >
0.05. Then, the communication does not mediate the
relationship between employee motivation and
employee performance with the value of regression
coefficient is 0.265, t-stat is 1.565, and P-value is
0.118 or > 0.05. Besides that, communication
mediates the relationship between workload and
employee performance with the value of regression
coefficient is 0.614, t-stat is 3.443, and P-value is
0.001 or < 0.01. It means that increasing 1 percent
in communication would mediate the relationship
between workload and employee performance in
Batam Port Management Partnership and Business
Development Division as much as 61.4 percent.
5 Conclusions and Suggestions
5.1 Conclusion
Based on the study results, organizational culture
and communication have a significant positive
relationship with employee performance. Besides
that, Motivation and Workload do not have a
significant effect on employee performance. In
addition, communication mediates the relationship
between workload and employee performance. In
conclusion, the present study proved that
communication is a significant factor in determining
employee performance and plays a significant role
as mediating variable between workload and
employee performance. This study contributes
significantly to the theory and government policy in
the term of human resource development. The
findings of this study can assist the Batam Port
Management Partnership and Business
Development in increasing their employee
performance through communication.
5.2 Suggestion
The organizational culture in the Batam Port
Management Partnership and Business
Development Division is good. The credibility and
reputation of a leader to be able to provide
inspiration and motivation to subordinates for
performance in facing changes and developments in
the world of work, motivation needs to be increased
by providing rewards for outstanding employees,
always maintaining friendship between leaders and
subordinates, strengthening the kinship of fellow
employees, understanding and recognizing
deficiencies and the advantages of each employee,
scheduling training for employees regularly and
periodically.
Acknowledgements:
We would like to thank Universitas Syiah Kuala and
Universiti Malaysia Terengganu for supporting this
research publication and one form of research
collaboration with the Universitas Syiah Kuala,
Banda Aceh, Indonesia.
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DOI: 10.37394/23207.2022.19.6
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Muhammad Adam, Mukhlis Yunus
E-ISSN: 2224-2899
60
Volume 19, 2022
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Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
-Mahdani Ibrahim writing original draft,
investigation, editing and supervision.
-Jumadil Saputra writing methodology, review,
editing, investigation, and data analysis.
-Muhammad Adam methodology, review, and
editing.
-Mukhlis Yunus writing methodology, review, and
editing.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
_US
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.6
Mahdani Ibrahim, Jumadil Saputra,
Muhammad Adam, Mukhlis Yunus
E-ISSN: 2224-2899
61
Volume 19, 2022