The Role of Organizational Culture, Leadership Style, and Incentives towards Performance of Agents in Social Security Acquisition

Abstract

The Social Security Administering Body (BPJamsostek) developed the Indonesian Social Security Agency (Perisai) as a means of expanding social security. Agents can achieve optimal performance if they have specialization in their work and are based on a valued organizational culture. The purpose of this study is to determine the effect of leadership style, incentives, and organizational culture on performance and to identify the characteristics of agents and elements that can improve performance. The population of this study were all agents in the BPJamsostek East Java regional office. The sampling method uses nonprobability sampling with a quota sampling design and a total sample of 190 agents. Research data was obtained by filling out an online questionnaire, then processed using Smart PLS 4.0 for structural equation modeling (SEM) analysis. The results of the study show that there is an influence of leadership style and incentives on the organizational culture of agents. Furthermore, the influence of incentives and organizational culture on performance has a positive and significant effect, except for leadership style which has a negative and insignificant effect on performance. However, organizational culture fully mediates the influence of leadership style on performance. In addition, organizational culture can mediate the relationship between incentives and performance by partial mediation. This implies that organizational culture has a positive effect on improving agent performance. Suggestions for further research can be done by adding new variables. In addition, the number of research samples needs to be expanded to the national level so as to provide more representative results.