The Role of OCB in Mediating The Effect of Employee Engagement and Organizational Commitment on Employee Performance: Contract vs Permanent Employees

Abstract

Abstract:Banking industry is one of sector that relies its employees on its quality of human capital. In facing the organizational change in the form of digitaliation, the performances of employees are really challenged. This study seeks to test the role of Organizational Citizenship Behavior (OCB) as mediator of the effect of employee engagement and organizational commitment on the employees performance at PT. BCA, Tbk Jember branch, Indonesia. This study used quantitative approach. As many as 162 employees are involved as respondents. We differ them based on their employee types, those are contract and permanent employees. The analytical tool used is path analysis. We report that there is a significant indirect effect of employee engagement and organizational commitment on employees performance through OCB. The role of OCB as mediator is significant in both of effects. We also found that employee engagement and organizational commitment have a significant direct effect on employee performance, employee engagement and organizational commitment have a significant direct effect on OCB, and OCB has a significant direct impact on employee performance.

Perceived Organization Support Towards Employee Engagement and The Impact of Employee Job Satisfaction

“…Research conducted by Fatoni et al, (2018) shows that Perceived organizational support, employee engagement has a significant effect on employee performance, as well as employee engagement and organizational commitment, have a significant effect on OCB, and OCB has a significant direct effect on employee performance. Research conducted by Dai & Qin, (2016) shows the results of the research show that: first, Perceived organizational support and employee engagement thas a significant positive correlation, perceived organizational support has a positive direct effect on employee engagement employees; second, Perceived organizational Support can also play a role in k employee engagement employees through organizational identification.…”

Organisational commitment, work engagement and job performance: empirical study on Nigeria's public healthcare system

“…Results of a study conducted by Negin, Omid and Ahmad (2013) in Meli Bank of Iran on organisational commitment (normative, continuance and affective commitment) were found to be positively related to employees' job performance. Several more recent empirical studies (e.g., Fatoni Prihatini, & Suryaningsih 2018;Pristiwati & Sunuharyo, 2018;Seikh, 2017) proved that organisational commitment and employee performance were positively and significantly correlated. However, other substantial empirical studies (e.g., Adrianto & Riyanto, 2020; Askolani & Maulid, 2018;Pratama & Aima, 2018) have proven that an insignificant association exists between organisational commitment and employee performance.…”

Factors Affecting Organizational Effectiveness at Employees of PT. CIMB Merchant Bank

“…Therefore, the Company believes employee engagement, organizational commitment, and Organizational Citizenship Behavior can improve employee performance, especially at PT. Bank Central Asia, Tbk (Fatoni et al, 2018).…”

“…Social responsibility is important because companies are in a society where every company activity impacts the environment (Emilisa & Lunarindiah, 2018). Organizational Citizenship Behavior is "free individual behavior and is not recognized by the formal reward system explicitly, and in the aggregate encourages the effective functioning of the organization" (Fatoni et al, 2018). The reason for choosing Self Efficacy (PsyCapbased variable) as an independent variable is that we want to expand the legitimacy of Organizational Citizenship Behavior by using a more contemporary and popular perspective, namely the PsyCap perspective.…”