Volume 6, Issue 3, March – 2021 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Effect Leadership, Organizational Culture and

Information Technology on Employee Performance at
Private Financial Services Companies in Denpasar
City During The Covid-19 Pandemic
Putu Pradiva Putra Salain I Gede Rihayana
Lecturer at Management Departement FEB Lecturer at Management Departement FEB
Mahasaraswati University Mahasaraswati University
Denpasar, Indonesia Denpasar, Indonesia

Putu Agus Eka Rismawan Nyoman Resa Adhika

Lecturer at Management Departement FEB Lecturer at Management Departement FEB
Mahasaraswati University Mahasaraswati University
Denpasar, Indonesia Denpasar, Indonesia

Daniel Manek
Lecturer at Management Departement FEB
Mahasaraswati University
Denpasar, Indonesia

Abstract:- The purpose of this study was to examine the factors besides having established strategies to be applied to
influence of leadership, organizational culture and the company itself. One important factor in achieving
information technology on employee performance at company goals is the quality of employee work. Employee
private financial services companies in Denpasar City performance is the final result produced by individuals in an
during the Covid-19 Pandemic. The sample in this study organization or company, however, the achievement of
were 147 employees of private financial services maximum performance must be carefully prepared by the
companies in Denpasar City. The analysis tool used is management, in this case the leadership involved in how to
path analysis (path analysis). The results of the analysis make planning, organizing, actuating and controlling in each.
explain that the variables of leadership, organizational lines within the company.
culture and information technology have a positive and
significant effect on employee performance. This can be Strategic planning to achieve company goals in a
explained in the leadership's ability to provide direction to managerial manner is very necessary, however, there are still
employees on the work process, then culture as a belief many company leaders who do not care about the media used
held by employees and finally information technology in working in the times that are based on technology so that it
plays a very important and very effective role in is feared that the achievement of these goals will experience
accelerating the completion of a job during the Covid-19 obstacles and have an impact on company productivity in
pandemic. employees. general Organizational culture as a belief held by employees
must also be implemented properly as an identity and value of
Keywords:- Component; Leadership, Organization Culture, self-confidence in work, especially in the present situation
Technology Information and Employee Performance. faced with the Covid-19 Pandemic, companies are required to
continue to be productive based on maximum employee
I. INTRODUCTION performance. There are many ways that companies, especially
those engaged in financial services, in the face of the Covid-19
Broadly speaking, business companies are profit- conditions, namely by utilizing the role of information
oriented organizations. A healthy company will be able to technology in completing work, however in implementation
generate maximum profits in accordance with what is there are still many problems related to the use of information
expected by top management as well as the vision and mission technology that has not been maximized on the grounds that
of the company itself. Competition between companies in the they are not used to switching to conventional way of working
private financial services sector, especially in the city of to a network that is online. In the process, the management has
Denpasar, is very tight in terms of providing services to the a role in collaborating the way employees work, especially for
public. Achieving company goals is inseparable from various

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Volume 6, Issue 3, March – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
employees in the field of information technology-based B. Organizational Culture
private financial services. Culture is a set of values, namely norms that direct
beliefs and understandings formed by members of an
Information technology systems are a set of technologies organization and teach it to new members. While organizing
that have functions to create, store, modify, and use comes from the word "organism" which means creating a
information in any form so as to speed up work completion. In structure with parts that are integrated in such a way that their
addition to information technology, the leader must also be relationship to each other is bound by the relationship to the
able to provide an understanding related to how it can be whole. Organization is defined as describing patterns,
implemented by socializing through habits or based on schemes, charts that show command lines, employee
organizational culture with the aim that employees are positions, existing relationships and so on. The organization is
obedient and obedient to the strategies that will be built by only a tool and a container where managers carry out their
information technology-based companies so that in this study activities to achieve the desired goals. Organizational culture
we want to know the effect leadership, organizational culture has a broad meaning and organizational culture is the norms
and information technology on employee performance at and values that direct the behavior of organizational members.
private financial services companies in Denpasar City during
the Covid-19 Pandemic. Each member of the organization will behave in
accordance with the prevailing culture in order to be accepted
II. LITERATURE REVIEW by their environment. Organizational culture is a system of
values, beliefs, and habits in an organization that interact with
A. Leadership each other's formal system structure to produce norms of
Leadership according to DuBrin (2005) is an effort to organizational behavior (Suprihati, 2014). Organizational
influence many people through communication to achieve culture is a system of shared meaning held by members that
goals, how to influence people with directions or commands, differentiates the organization from other organizations
actions that cause others to act or respond and cause positive (Robbins, 2006). From the above definition, it can be
change, important dynamic forces that motivate and concluded that organizational culture expresses the core values
coordinate organizations in order to achieve goals. , the ability shared by the majority of organizational members.
to create self-confidence and support among subordinates so Organizational culture can provide stability for an
that organizational goals can be achieved. (Brahmasari & organization, but can also be a barrier to change.
Suprayetno, 2008). Leadership is defined as a bond that
influences each other in this case between a leader and a C. Technology Information
subordinate, where the ultimate goal is to want real change Information technology refers to the resources used by
and reflect a common goal (Rost, 1993). organizations to manage the information needed to achieve
organizational goals. A related term is information
Leadership is an art, because everyone's approach to technology. IT can consist of computers, computer networks,
leading people can be different depending on the telephones, fax machines, other hardware devices. In
characteristics of the leader, the characteristics of the task and addition, IT also involves software that facilitates the system's
the characteristics of the person they lead. Leadership is ability to manage information in ways that are beneficial to
implemented when a person mobilizes institutional, political, leaders and employees (Ricky W. Griffin, op. Cit., 227).
psychological and other resources to generate, engage and According to Thomas McKeown in Muhamad Suyanto
motivate followers (Bass, B.M., B.J. Avolio, D.I. Jung & Y. (2005) defines information technology as a set of
Berson. 2003). technologies that have functions to create, store, change, and
use information in any form. According to the Information
Leadership according to Anoraga (2003) is defined as a Technology Association of America (ITAA) in Sutarman
person's ability to be able to influence others, through (2005) information technology is a function of designing,
communication, either directly or indirectly, with the intention developing, implementing, supporting or managing
of moving these people so that with understanding, awareness information systems that use computers, especially software
and pleasure, they are willing to follow the wills of the leader. and hardware. Electronic computers and computer software
Based on the opinions of experts who have been presented, the assist in transforming, storing, protecting, processing,
relationship between leaders and employee performance has a transmitting, and obtaining information securely.
strong relationship, because leaders are expected to be able to
provide direction and explanation regarding the goals of the Information technology is divided into two
institution or organization. technologies, namely computer technology and
communication technology, both of which combine in a
function of processing and disseminating information, both
financial and non-financial (George H and Hopwood,
Williams S, 1995).

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Volume 6, Issue 3, March – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
III. RESEARCH METHODS B. Research Model
This research is a survey research using a questionnaire
A. Research Conceptual as the main research instrument to explain the relationship
between the variables studied. In addition, it also uses in-
depth interviews with key informants to support or explore
findings from the results of quantitative analysis. The
population in this study were employees of private companies
engaged in financial services in the city of Denpasar,
amounting to 147 people. The number of samples in this
study were 147 employees, the sampling technique used in
this study was nonprobability sampling. To describe the
respondent's assessment on each research instrument, the
respondent's answers were categorized into 5 (five)
measurement scales through the interval range formulation.
Where each questionnaire answer has a weight or value score
with a Likert scale (1-5), a score of 1 (strongly disagree), 2
(disagree), 3 (quite agree), 4 (agree), and 5 (strongly agree).
The data analysis technique used in this research is
descriptive analysis which aims to provide an overview of the
Picture 1 : Research Conceptual demographics of research respondents and a description of
Source: Primary research data, processed (2021) the research variables and inferential analysis techniques are
used to test empirical models and hypotheses using a
variance-based structural equation model, known as Partial
Least Square (Ghozali, 2008).

IV. DISCUSSION

Table 1: Hypothesis Testing Results

original sample estimate mean of subsamples Standard deviation T-Statistic
Lead -> EP 0.056 0.157 0.408 2.042
OC -> EP 0.335 0.126 0.463 3.724
TI -> EP 0.182 0.076 0.357 2.511

B. Organizational culture has a positive effect on employee

performance
The results of the second hypothesis research indicate
that organizational culture has a significant positive effect on
employee performance. This can be seen from the path
coefficient of 0.335 with a t-statistic of 3,724> 1.96, So that
in this study the relationship between organizational culture
variables on employee performance can be explained that this
is also influenced by the attention to detail indicator which
means that organizational culture is still used as a guide in
working during the Covid-19 pandemic as a belief held by
employees.
Picture 2: Output PLS Results
C. Information technology has a positive effect on employee
performance
A. Leadership has a positive effect on employee performance
The results of hypothesis 3 research indicate that the
The results of this study indicate that the testing of
path results of the information technology coefficient have a
hypothesis 1 produces a coefficient pathway that shows that
significant positive effect on employee performance. This can
leadership has a significant positive effect on employee
be seen from the path coefficient of 0.182 with a t-statistic of
performance. This can be seen from the path coefficient of
2.511> 1.96, so that in this study the relationship between
0.056 with a t-statistic of 2.042> 1.96, So that in this study
organizational culture variables on employee performance
the relationship between leadership variables on employee
can be explained that this is also influenced by indicators of
performance can be explained again that this is also
data and information processing which means the use of
influenced by the indicator of the leadership's ability to
information technology in work that is very effective is used
provide direction to employees during changes in working
to accelerate the completion of a job during the Covid-19
practices during the Covid-19 pandemic which has a value of
pandemic, where the pattern of work is mostly done online.
0.934.

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Volume 6, Issue 3, March – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
V. CONCLUSION [16]. Sutarman. 2009. Pengantar teknologi Informasi. Jakarta
: Bumi Aksara.
Results of the discussion of this study it can be [17]. Suyanto, Muhammad. Pengantar Teknologi Informasi.
concluded that leadership, organizational culture and Yogyakarta: Andi. 2005.
information technology have a significant positive effect on
employee performance. This can be explained in leadership,
there is an indicator of the leadership's ability to provide
direction to employees in the work process, then the
organizational culture is still used as a guide in working as a
belief held by employees and finally information technology
plays a very important role and is very effectively used to
speed up completion. a job during the covid-19 pandemic by
employees.

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