The Effect of Organizational Culture on Organizational Commitment for Participants in Leadership Education and Training Level IV of the Ministry of Finance

Abstract

Organizational culture can be the main competitive advantage instrument and employee commitment since they tend to be affected by organizational culture aspects at work. This research discusses the effect of organizational culture on employee organizational commitment. The research objective is to analyze how the effect of organizational culture on organizational commitment through three dimensions consisting of affective commitment, continuance commitment and normative commitment. The research sample involved 130 people from echelon IV officials who were attending the Leadership Education and Training Level IV of the Ministry of Finance using a saturated sampling technique in which all members of the population became research samples. This research employed causality model or relationship or effect. To test the proposed hypothesis, it utilized SEM (Structural Equation Models) analysis techniques. Based on statistical results, organizational culture has a positive and significant effect on organizational commitment. This is evidenced from the results of the p (probability) value of 0.07 > 0.05 and an estimated value of 0.75 which shows a positive result. It means that if the culture of the organization increases, it will affect the increase in organizational commitment.