Corporate Culture Mediates Human Resource Management Practices of Company Performance (Study of Subsidiaries and Affiliates of PT. Semen Indonesia Group)

This study aims to examine the mediating
role of organizational culture consisting of clan
culture, adhocracy, market, and hierarchy in
mediating the influence of human resource
management practices on company performance.
Based on the literature used, this study developed a
structural model for the observed variables, which
was then tested using Structural Equation Modeling
(SEM) with the help of SmartPLS version 2.0
software. The data was collected using a survey
method, namely by distributing questionnaires to 166
employees who occupy two important positions,
namely directors and echelon 1 who work for
subsidiaries and affiliates of PT Semen Indonesia
(Persero) Tbk. Group, which is taken proportionally
by the total sampling method. The results showed that
the practice of human resource management of PT
Semen Indonesia Group has a positive influence on
the performance of the company PT Semen Indonesia
Group. However, this positive effect is not significant.
Meanwhile, among the four types of culture observed,
namely clan culture, adhocracy, market, and
hierarchy, the type of culture that plays a role in
mediating the influence of human resource
management practices on company performance is
hierarchy culture. Thus, hierarchy culture is a
crucial factor that mediates the effect of human
resource management practices on company
performance. The findings of this study provide
important implications for the theory and practice of
human resource management and company
performance.

Keywords : Clan Culture, Adhocracy Culture,
Market Culture, Hierarchy Culture, Company
Performance, Human Resource Management
Practices.