LEADERSHIP, ORGANIZATIONAL CULTURE AND REWARDS (Studies in Bandung City Government of West Java Province) Yuswandi A. Temenggung

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES 30th August 2016. Vol.45. No.1 © 2012-2016 TIJOSS & ARF. All rights reserved ISSN 2305-4557

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LEADERSHIP, ORGANIZATIONAL CULTURE AND REWARDS (Studies in Bandung City Government of West Java Province) Yuswandi A. Temenggung ABSTRACT Bandung as services city with the Mayor figure entrepreneurs background racing to build the city with all the potential and limitations. Synergize the leadership, organizational culture and civil servants as a force in achieving objectives with optimum performance. Leadership, Organizational Culture and Rewards are the factors which determine the apparatus performance in carrying out the Bandung City development policies and activities in becoming city of investment destinations, tourism and trade. Keywords: Leadership, Organizational Culture and Rewards domestic task and are paid based on the applicable rules and legislations. In connection with the apparatus performance in government bureaucracy implementation as stated in Law No. 5 of 2014 concerning the Civil State Apparatus Article 11, stated that; Civil State Apparatus tasks (ASN), namely: a) Implement public policies made by State officials; b) Provide professional and qualified public service; and c) Strengthen the unity and integrity of the Unitary Republic of Indonesia. The task is not only to support the achievement of the successful implementation of various policies and development activities but could also support the creation of effective of government functions implementation. Apparatus performance is the integral part of government bureaucracy performance that is included in the organization of the executive, legislature, judiciary and other government agencies. Therefore, the apparatus performance could be crucial in realizing the government performance that is transparent, productive, effective, efficient, and accountable. Nationally, there are still many problems faced in coaching ASN among others: 1. Discipline and employee performance are still low; 2. Not yet applying civil servants competency standards and main performance indicators; 3. The employee remuneration system not yet performance-based and has not been accompanied by the implementation of a fair reward and punishment system;

1.

Background of the Research Ministry of Administrative and Bureaucratic Reform (Kemenpan-RB) held the Coordination Forum for Administrative Reform and Submission of City and Regency Government Performance Accountability Evaluation Report at Sasana Budaya Ganesha, Bandung on Thursday, February 10 2015. Bandung selected as the host of the forum such as the results of Government performance Accountability System (SAKIP) evaluation report, Bandung ranks 1, the title of "A" with a score of 80.2 And the highest in Indonesia. Civil Servants have a very important role in helping the government to organize the administration is as a thinker, planner, executing, monitoring and controlling development. The success of development in accordance with the planning will largely be determined by the performance. Therefore a Civil Servant must have an understanding of the vision, mission, strategy, basic tasks and functions of the organization work unit and has a good character, high integrity, a noble character, discipline and high morale, insight and knowledge as well as good skills, have the nature to serve and protect, can be an example and become agents of change for the Indonesian people. Based on Law No. 43 of 1999 on the Amendment of Act No. 8 of 1974 on the Civil Service Fundamentals, explains that: Civil Servants hereinafter abbreviated as PNS is every citizen who has been determined eligible, appointed by the competent authority, and handed the task of the domestic office or other

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4. have not been fully implemented civil servants career development based on performance; 5. The employees planning have not been prepared on the basis needs of the work unit adapted to the workload, competence and linked to the achievement of organization performance targets; 6. do not have a performance appraisal system based on individual performance; 7. The organization has had a complete personnel information system but can not be used to the fullest, and do not have HR managers adequate information systems; 8. The use of information systems have been effectively used for counting the number and distribution, planning and retirement of the employee but has not been used for the benefit of the wider civil service, such as performance, competence, promotions and incentives. 1. Problems Formulation Various factors that were identified and supposed influenced the apparatus performance, including leadership, organizational culture and rewards. These three factors suspected to affect the apparatus performance. How to improve the apparatus performance is one of the key issues and studies in public administration. Many factors correlate and affect the apparatus performances in carrying out their duties. What actors and how big it may affect the apparatus performance is the focus of this research study. This influence can be grouped into 2 (two) groups, namely internal an external factors. Several factors that identified and suspected correlated and or affect the local government officials performance in the sphere of internal, include; 1) discipline, 2) competence, 3) work motivation, 4) work ethic, 5) creativity and 6) innovation. While some of the important factors that correlate the scope of external employees and or affect the apparatus performance, include; 1) decentralization and regional autonomy policy implementation , 2) Regional medium term development plan (RPJMD), 3) the strategic plan (Strategic Plan), 4) the capacity of local financing, 5) organizational culture, 6) entrepreneurial leadership, 7) the remuneration 8) coordination , 9) investment, 10) economic policy, 11)

strategic environment, 12) export / import 13) inter-regional economic cooperation; and 14) the relationship between nations. 2. Leadership, Organizational Culture and Rewards Relation with Civil Servants Performance One theory suggests a relation between leadership, organizational culture and reward is Integrative Model of Organizational Behaviour proposed by Colquitt et.al. (2009: 8). Analysis of leadership, organizational culture, and rewards influence on employee performance is reflected in an integrative relation model between the following variables:

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Picture 1 Integrative Model of Organization Behavior

Source: Colquitt et.al. (2009:8) Integrative model described by Colquitt et. al. Above shows that the organizational mechanism, group mechanism and individual characteristics correlated with performance and organizational commitment. This model also includes motivation in the form of consideration paid, which captures the energetic powers and encouraging employees to work. Trust, justice, and ethics reflect the extent to which employees feel that the company is doing business with fairness, honesty, and integrity. Description integrative model proposed by Colquitt et.al. obtained an understanding

concept that supports the research model that researchers conduct. The understanding is meant that the culture of an organization included in the the organization mechanism, leadership include to the group mechanism, and motivation in the form of remuneration included in the individual mechanisms. With the selection of individual performance or the employee performance as individual outcomes, so "integrative models of organizational behavior in employee performance" can be presented with a intergrated model of organizational behavior as follows:

Picture 2 Bandung City Goverment intergrated model of organizational behavior organizational mechanism

group mechanism individual mechasnism result

Organizational culture entrepreneurial leadership

Employee performance individual work

rewards

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Source : processed from theory (2015) Integrative model of the relationship between variables presented, can be described Leadership, Organizational Culture and rewards relations to the Apparatus Performance in implementing the policies and activities of the investment development, trade, services, and industry in Bandung city.

A. Organizational Culture Relation with Performance Organizational culture is defined as beliefs, ethics and norms which take place in an organization. Organizational culture as a dynamic system of values is a belief, ethics, norms that embraced by all members of the organization and also characterize the organization's identity and clearly can affect the performance of the organization's members in the work, means the functions of organizational culture correlated with performance. Through a conceptual description of the organizational culture relation with performance presented, it can be conceptualized that Organizational Culture correlates with Performance Apparatus. the Organizational Culture Correlation with Apparatus performance takes place in the process of actualization of shared values, beliefs, and norms. B. Rewards Relation with Performance Rewards relation with employee performance can be explained by the agency theory. Agency theory arises when one or more individuals (called heads) hired another person (called an agent) as their representative. The agency and heads rights and obligations specified in the mutual relations office that been agreed, agency theory to explain the relationship with the parable of the contract. Agency theory assumes that individuals are fully rational and have a choice and the confidence that match with the expected benefits theory axioms (Bonner and Sprinkle, 2002). Agency theory states that people will shrink (no businesses) in a job, unless it has contributed to the economic health of their own (Bonner and Sprinkle, 2002). Rewards are not dependent on the performance of employees generally can not meet this criterion, thus the agency theory states the incentive to have a fundamental role in motivating and controlling the performance of the apparatus because of a desire to increase wealth. Every individual who works in an organization would not only need recognition but also requires the award for the performance or work performance that achieved. An award received by the ASN Officials in the local

A. Leadership Relation with Performance Leadership as a process by which individuals influence the group to achieve a common goal (Northouse, o.g., 2003: 3). This opinion was sharpened by Dubrin that leadership is the ability to instill confidence and gain support from the organization members to achieve organizational goals (Dubrin, A. J., 2001: 3). Leadership is present in the leader / manager. From the characteristics aspect distinguishable between the characteristics of the leader (leader) with the characteristics of the manager. Leadership that is taking place among the elements of leadership and staff in the implementation of the Bandung city Government are significantly effect on employee performance. This opinion is grounded on the argument that the entrepreneurial leadership that took place between management and staff in the administration of Bandung City Government are structural communication activity and social interaction with influence each other. Therefore, entrepreneurial leadership can affect employee performance in implementing Bandung City Government policies and activities, including in implementing the policies and activities of the investment development, trade, services and industry. Through a conceptual description of the leadership relation with performance described, it can be conceptualized that leadership correlates with Apparatus Performance. Leadership correlation with Apparatus performance takes place in organizational mechanism, group mechanism and individual characteristics.

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government is a kind of reward for its performance. One type of official remuneration received by the apparatus is the salary (wage). An award received in the form of salary becomes one of the strengths that motivate employee to improve performance. With that in mind, then the appropriate award can increase customer satisfaction and performance of the apparatus to do the job. About rewards relation with performance presented, can be conceptualized that Rewards correlates with the Apparatus Performance. Rewards correlation with Apparatus performance processed by rewarding place in direct and indirect remuneration.

role of road clarity. With this view, the increasing effectiveness of its entrepreneurial leadership to improve the apparatus performance can be carried out by SKPD leadership elements by developing five (5) above roles. In more detail this role of SKPD leadership elements can be done with 15 indicators of entrepreneurial leadership. Based on the application of the SEM analysis it can be stated that the influence of leadership on Bandung city apparatus performance determined by 15 indicators or manifest variables consisting of: (1) the role of inspirational; (2) the role of confidence booster; (3) The decisive role of values; (4) the role of decision makers; (5) the role of integrator; (6) the role of plants courage; (7) the role of future observer; (8) the role of visionary leaders; (9) the role of reinforcing self-confidence; (10) the role of reinforcing ambition; (11) the role of informants; (12) the role of steering performance; (13) the role of diplomat; (14) the role of negotiator; and (15) the role of motivator. In a stimulant, the development role of the SKPD leadership elements committed to actualize those 15 leadership indicators that improve the apparatus performance in implementing various policies and development activities of Bandung as city of services, trade, and industry. Improved performance of the apparatus includes an increase in activity, namely (1) planning of the work; (2) execution of work; (3) work result; (4) the execution of work professionalism; (5) work effectives execution; (6) work execution efficiency; (7) city of trade, services and industry implementation policy; (8) to optimize policy supporting factors; (9) anticipate policyinhibiting factor; (10) develop cooperation among the private sector; (11) develop partnerships between public and private; (12) develop cooperation between central and local governments; (13) pursuing infrastructure; (14) to improve the quality of licensing services; (15) to optimize the provision of incentives; (16) to optimize the implementation of strategic planning; (17) to optimize the promotion; (18)planting; (19) to innovate; (20)adaptation; and (21) to revitalize.

3. Leadership Influence in PerformanceBased Organizational Management A. Leadership Influence to Apparatus Performance The results of measurements and testing of the first hypothesis shows that leadership has a significant effect on Apparatus performance in Bandung city. The influence shows that among the leadership that is positioned as antecedent variables with apparatus performance which is positioned as a variables consequence established a mechanism of causality. This relation means that if the leadership is increased then the increase can stimulant Apparatus followed by increased performance. Thus empirically it can be stated that the leadership was partly responsible for the high and low performance of the apparatus in Bandung. Therefore, the increased performance of the apparatus in Bandung can be improved by increasing the effectiveness of leadership is taking place among the elements of leadership and staff SKPD. Leadership is seen as a concept and behavior of leadership that oriented in public service and the advancement of social economic. Processing to be a social interaction interplay between leadership and SKPD staff related to the implementation of policies and activities to realize the city of Bandung as city of services, trade and industry requires investment are revealed from (1) the role of reinforcing the commitment, (2) the role of critical situation meaning, (3) the role of uncertainty transforming, (4) the role of framing, and (5) the

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Factor analysis Results showed that the Framing dimensions role become the most dominant dimension contribution in the establishment of the influence level on the Bandung city Apparatus Performance in implementing Bandung development policies and activities as an industry and trade investment destinations. Framing dimensions Roles include an indicator (1) The role of the amplifier ambition; (2) The role of informants; and (3) The role of steering performance. The influence formed by the leadership indicators show that between Leadership and Apparatus Performance established a mechanism of causality which means that if the leadership is increased or increases, the increase can be a stimulant followed by apparatus performance increased. Thus it can be stated that the leadership in governance is one of the factors that determine the level of apparatus performance in carrying out regional development policies and activities into industry and trade investment destinations. Therefore, improving the employee performance in implementing the policies and activities can be done by increasing the actualization of leadership in governance. B. Organizational Culture Influence to Apparatus Performance 2. The result of measurements and testing the second hypothesis indicates that organizational culture significantly influences Bandung city apparatus performance. The influence shows that between Cultural Organization which is positioned as antecedent variables with apparatus performance which is positioned as a consequence variable established a mechanism of causality. This relationship means that if the organizational culture is increased or increases, the increase can be a stimulant followed by Civil Servants performance increased. Thus empirically it can be stated that the organizational culture is a causative factor high and low performance of the apparatus in Bandung. 3. Therefore, the increased performance of the apparatus in Bandung can be improved by increasing the values of Organizational Culture which took place between elements of leadership and SKPD staff. In this

context, organizational culture is seen as a basic pattern that develops in the administration of the Bandung City Government bureaucracy that legally recognized as the right way of adaptation tackling the problems of the outside and integrating countermeasures internal problems. With this view, the increase in the culture values of Cultural organizations to improve the apparatus performance can be carried out by all the elements of leadership and SKPD staff by adapting tackling the problems of the outside and integrating countermeasures internal problems. In detail adaptation tackling the problems of the outside and integrating countermeasures internal problems can be done to actualize the 15 indicators of the organization's culture. Based on the application of the SEM analysis it can be stated that the influence of organizational culture on Bandung city apparatus performance determined by 14 indicators or manifest variables consisting of (1) the organization's mission; (2) The functions of the organization; (3) organization main tasks; (4) the goals of organization; (5) the basic concept of organization goals; (6) criteria measurement results; (7) the adjustment strategy for the distant goal; (8) integration; (9) coordination; (10) performance criteria; (11) the authority's performance; (12) co-operation; (13) incentives, and (14) sanctions. In stimulants, development of cultural organization values committed to actualize the 14 indicators of organizational culture that improve employee performance in implementing the policies and activities of the Bandung city development as city of services, trade, and industry. The employee performance improvement include increased activities (1) planning of the work; (2) execution of work; (3) work result; (4) the execution of work professionalism; (5) work effectives execution; (6) work execution efficiency; (7) city of trade, services and industry implementation policy; (8) to optimize policy supporting factors; (9) anticipate policy-inhibiting factor; (10) develop cooperation among the private sector; (11) develop partnerships between public and

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private; (12) develop cooperation between central and local governments; (13) pursuing infrastructure; (14) to improve the quality of licensing services; (15) to optimize the provision of incentives; (16) to optimize the implementation of strategic planning; (17) to optimize the promotion; (18)planting; (19) to innovate; (20)adaptation; and (21) to revitalize. Results Factor analysis showed that the Adaptation dimension reduction problems from the outside into the dimensions of the most dominant contribution in the formation of the organizational culture influence to Bandung apparatus performance in implementing the city development policies and activities as an industrial and trade investment destination. Adaptation dimension countermeasures problem- problems of the outside cover indicator (1) the organization's mission; (2) The organization functions; (3) the main tasks of the organization; (4) the goals of the organization; (5) the basic concept of the organization goals; (6) criteria measurement results; (7) the adjustment strategy for l unreached goal. A. Reward Influence to Apparatus Performance 4. The measurement results and tests the third hypothesis showed that the reward significantly influence Bandung city apparatus performance. The influence shows that among the benefits that are positioned as antecedent with apparatus performance positioned as a consequence variable established a mechanism of causality. This relation means that when the reward enhanced or increases, the increase can be a stimulant followed by an increase in employee performance. Thus empirically it can be stated that the Rewards is a causative factor high and low performance of the apparatus in Bandung. Therefore, the increased performance of the apparatus in Bandung can be improved by increasing the rewards to employees who have an achievement or achieve optimal performance. In this context, Rewards seen as compensation achieved by employees for job performance or the success he achieved in implementing the policies and activities in accordance with the duties and responsibilities set forth by the direct financial payment and

indirect payment. With this view, the reward increase to improve the performance of the apparatus can be carried out by all the elements of leadership to improve the provision of direct financial payments and indirect payments. In more detail adaptation tackling the problems of the outside and integrating countermeasures internal problems can be done with actualizing 12 rewards indicators. Based on the application of the SEM analysis it can be stated that the influence of rewards to performance Jambi City officials determined by 12 indicators or manifest variables, namely: (1) salaries; (2) The honorarium of activities; (3) overtime; (4) The allowance; (5) bonus work; (6) cost of living allowances; (7) health care benefits; (8) THR; (9) old age benefits; (10) housing; (11) vehicles; and (12) educational facility. Results Factor analysis showed that the dimension of Indirect payment into the dimensions of the most dominant contribution in the formation of the influence of rewards on Bandung City apparatus performance in implementing the policies and activities of the city development as trade and industry destination of investment,. This dimension includes the indicator (1) health care benefits; (2) THR; (3) old age benefits; (4) housing; (5) the vehicle; and (6) the educational facilities. Results of testing hypotheses in SEM analysis described indicates that the influence of leadership on the Performance of the apparatus, which reached 0.20; the influence of organizational culture on employee performance that reaches 0, 31; and the influence of the Rewards on apparatus Performance reaches 0, 54. Results of testing this hypothesis in SEM analysis shows that among the three exogenous latent variables Rewards turns into the most dominant variable indicates the amount of the contribution impact on Apparatus performance in implementing the policies and activities of regional development into industry and trade investment destinations. Hypothesis testing results described in Regression Analysis showed that the influence of Leadership and Organizational Culture jointly to Bandung city apparatus performance reached 0.739; the influence of Leadership and reward jointly to Bandung city apparatus

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performance reached 0.819; the influence of organizational culture and Rewards jointly to Bandung city apparatus performance reached 0.821; and the influence of Leadership, Organizational Culture and Rewards jointly to Bandung city apparatus performance reaches 0, 848.

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4. Conclusions Researchers made the concept and regional development strategies into investment destinations, industry and trade. The evidence is that the leadership, organizational culture, rewards determine the success of efforts to achieve investment destinations, industry and trade through the apparatus performance. Proposition refers to the concept of understanding the following: 1. Leadership is a concept and leadership behaviors that oriented on public services and economic progress proceed into social interaction interplay between leadership and SKPD staff related to the implementation of policies and activities to realize Bandung city as a city of services, trade and industry require an investment that unfold over the role of reinforcing the commitment, the role of critical situation meaning, the role of uncertainty transforming, the role of framing, and the role of road clarity. 2. Organizational Culture is seen as a basic pattern that develops in the administration of Bandung city government bureaucracy legally recognized as the right way of adaptation tackling the problems of the outside and integrating countermeasures internal problems; 3. Rewards is an employee compensation received on job performance or the success he achieved in implementing the policies and activities in accordance with the duties and responsibilities set forth by direct financial payment and indirect payment; 4. Performance of the apparatus is a process and the work of employees at SKPD related to the implementation of policies and activities to realize the trade and industry city were revealed from the quantity of work, quality of work, knowledge of the work, cooperation, dependability, initiative, courage to act alone or initiate work.

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LEADERSHIP, ORGANIZATIONAL CULTURE AND REWARDS (Studies in Bandung City Government of West Java Province) Yuswandi A. Temenggung

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