The Effects of Organizational Values, Situational Leadership on Organizational Commitment and Performance with Competency as a Moderation Variable in Rural Bank Employees in The Region of Central Java Province, Indonesia

Abstract

Rural Banks (BPR) are the agents of regional and rural economic growth and spearhead the distribution of capital/financing for the micro, small, and medium enterprises (MSME) sector. Human resources are a precious asset for companies in the banking services sector. This type of company sells services in collecting third-party funds in savings and deposits and providing credit (loan) services. The employee's performance will be reflected in the service he provides to customers as outlined in the KPI (Key Performance Indicators) assessment. If the performance is unsatisfactory, customers will not do business with the company again. Employee work performance dramatically influences the survival of banking companies. This research aims to analyze and prove the influence of organizational values and situational leadership on organizational commitment and performance and whether competence moderates the influence of organizational commitment on performance. The population in this study was 2,169 employees of the Rural Bank (BPR) owned by the Regional Government of Central Java Province. The sampling technique used in this research was proportional random sampling, and the sample size was 338 respondents. Data analysis uses SEM (Structural Equation Modeling) using AMOS version 26 software. The research results prove that 1) organizational values and situational leadership have a significant effect on organizational commitment, 2) organizational values have an insignificant effect on employee performance, 3) situational leadership and organizational commitment have an effect on employee performance, 4) competence moderates the effect of organizational commitment on employee performance.