IJSTR >> Volume 7 - Issue 12, December 2018 Edition

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AUTHOR(S)

A. Affandi Asyad Siregar, Prihatin Lumban Raja, Yeni Absah

KEYWORDS

Incentive, Organizational Climate, Employee Morale, Employee’s Performance

ABSTRACT

Maximal performance is supported by gaining incentive which is in accordance with employee’s success in achieving a target, favorable organizational climate in completing certain work, and employee morale in completing their work. In achieving organizational vision and mission, PT Bank Sumut, Iskandar Muda Branch Office, Medan, has implemented its task and function, and its employees have worked maximally in fulfilling the company’s needs. It can be seen from the target and the realization which have been achieved by PT Bank Sumut, Iskandar Muda Branch Office, Medan, in the last three years. The realization of various activities reaches 50%. The objective of the study was to find out and analyze the influence of incentive and organizational climate on employee’s performance with employee morale as intervening variable at PT Bank Sumut, Iskandar Muda Branch Office, Medan. The population was 75 employees who worked for PT Bank Sumut, Iskandar Muda Branch Office, Medan, and all of them were used as the samples, taken by using census sampling technique. The data were gathered by using descriptive quantitative survey method by distributing questionnaires and analyzed by using path analysis with an SPSS software program. The result of the research showed that, simultaneously, there was positive and significant influence of incentive and organizational climate on employee’s performance. Partially, incentive had positive and significant influence on employee’s performance, and organizational climate had positive and significant influence on employee’s performance. Simultaneously, incentive and organizational climate had positive and significant influence on employee morale. Partially, incentive had positive and significant influence on employee morale, and organizational climate had positive and significant influence on employee morale at PT Bank Sumut, Iskandar Muda Branch Office, Medan. Partially, employee morale had positive and significant influence on employee’s performance at PT Bank Sumut, Iskandar Muda Branch Office, Medan. Indirectly, incentive had positive influence on employee’s performance through employee morale, and organizational climate had positive influence on employee’s performance through employee morale at PT Bank Sumut, Iskandar Muda Branch Office, Medan.

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