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

Poernomo, Wahyu and Budiyanto, Budiyanto and Suhermin, Suhermin (2019) Corporate Culture Mediates Human Resource Management Practices of Company Performance (Study of Subsidiaries and Affiliates of PT. Semen Indonesia Group). SSRG International Journal of Economics and Management Studies (SSRG-IJEMS), 6 (10). pp. 34-40. ISSN 2393 - 9125

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Abstract

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.

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