Influence of Locus of Control and Job Involvement to Organizational Culture Applied by Employees on Bank X

World Academy of Science, Engineering and Technology 60 2009

Influence of Locus of Control and Job
Involvement to Organizational Culture Applied
by Employees on Bank X
Sri Suwarsi, and Nadia Budianti

and the organizational culture has been established, as called
Abstract—As one of the big government bank, Bank X is paying
‘TIPEC’ (Trust, Integrity, Professionalism, Excellent, and
attention its performance, so that it can compete. One of them is the
Consumer focus). This is the attitude to competition in
existence of organizational culture which recognized with term
banking in very competitive, in order to be more capable to
TIPEC (Trust, Integrity, Professionalism, Costumer Focus, and
various challenges. Based on the organizational culture, the
Excellence). In application of organizational culture, it is needed the
employees have rules in the job.
existence of employee involvement (job involvement). It can be
influenced by various factors, such as Locus of Control.
So far, the employees of Bank X have understood the
Related to above mentioned, the problems are how employee
organizational culture. However, it is not fully applied yet.
tendency of Locus of Control, how job involvement, how One aspect is how TIPEC organizational culture application
organizational culture applied by employees and how influence of
by employee in their selves due to influence of internal or
Locus of Control and job involvement to the organizational culture
external locus of control.
applied by employees.
The objectives of research were to understand how Locus
Researchers collected data with questioner spreading, and of Control of employees at Bank X, Job Involvement of
respondents number of 30 people. After that, the data were analyzed
employees at Bank X, the organizational culture applied by
with SPSS software constructively. The influence of Locus of
Control and job involvement to the application of organizational
employees at Bank X, influence of Locus of Control to the
culture was strong, i.e. 58.3%.
organizational culture applied by employees, influence of Job

Involvement to the organizational culture applied by
Keywords—organizational culture, bank, employee locus of employees, and to understand the influence of Locus of
control, job involvement
Control and Job Involvement to the organizational culture
applied by employees at Bank X.
I. INTRODUCTION
UMAN kinds as activator of an organization or company
II. RESEARCH AND ANALYSIS METHODOLOGY
H are influenced by many factors. One of these is locus of In this research, it was used population of employees at
control concept, which developed by Rotter [9]. It is ensured
Bank X as number of 30 people. Site research was carried out
to give contribution to quality of performance on an individual
directly at the company as the object of research and the data
person, i.e. an initial response as basic of further responses.
were obtained with interview. The interview was a dialogue
Locus of control itself is divided in two, i.e. locus of control
with involved people at the company, and then to be directed
that to orient internally and externally.
to certain problem with some prepared questions. Besides that,
Job Involvement according to Robins [10] is people attitude
it used question inquiry, as called questionnaire, i.e. the data
that take sides psychologically to job, and consider the job is
collection with giving written questions, and the results would
the most important in his/her life. Both factors, Locus of
be analyzed for understanding how far the influence of Locus
control and Job involvement, are variables that used in of control and Job involvement to organizational culture
measurement or understand how employee application of applied by employees.
organizational culture at a company. Organizational culture
The researched variables were Locus of Control and Job
according to Mangkunegara [2] is value, regulation, norm Involvement as independent variables (X), whereas
those applied at a company as rule of employee behavior in
organizational culture applied by employees was as dependent
job.
variable (Y). Locus of Control was independent variable (X1),
In banking, especially Bank X became object of research,
i.e. the concept was developed by Rotter, as give contribution

to quality of performance of one individual. Locus of control
Sri Suwarsi is a lecturer at Bandung Islamic University, Dept. of Management.
consist of internal and external orientations, as dimension for
She obtained bachelor and master degrees from Bandung Islamic University
(1994) and Padjadjaran University Bandung (2001) Indonesia respectively (e-
this variable, with inside indicator of motivation, skill,
mail: srisuwarsi@yahoo.com).
knowledge, opportunity, partners and fate. The used
Nadia Budianti is an alumnus from Bandung Islamic University, Dept. of
instrument was Rotter [9], and has been tested the validity by
Management, Bandung Indonesia.

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World Academy of Science, Engineering and Technology 60 2009

Brownel [6].
correlation is:
Job involvement was independent variable (X2), according
JK
2
r =
(reg )
(4)
to Robbins [7], it was employee involvement where an
∑ 2
Y
individual attitude take side psychologycally to the job, and
where r²=double correlation coefficient, JK(reg)=sum of
the job is most important. According to Kanungo [8], there are
2
square, ∑ Y = sum of total correlation squares.
3 dimentions; employee participation, consistency and inciator
motivation. The used instrumentation was by Jeaffey & Based on correlation coefficient (r), so that r values between -
Weatherholt [3]. This instrument measures job involvement
1 < r <1, described as follows.
thought 5 points of likert scale, with very agree (5) and very
If r=1, there is a linear relation among X1, X2, and Y variables
not agree (1). This instrument is job involvent sizes that very
perfectly positive. If r=-1, there is a linear relation among X1,
reliable, and usually used in many research by Aranya [9],
X2, and Y variables perfectly negative. If r on -1<r<1, the
Morrow & Wirth [10].
correlations are not perfect.
Based on Rotter scale, an examination was carried out for
Determination coefficient analysis is used to know percentage
giving score one (1) on every external statement and score
(%) of influence magnitude of variable X1 (locus of control)
zero (0) for every internal statement. The score values and X2 (job involvement) to Y (organizational culture applied
between 0 (most internal) and 7 (most external). It was by employees), with the formula:
2
established a criteria based on median as; 0-3: tendency to
KD = r x 100% (5)
locus of internal control and 4-7: tendency to locus of external
where, KD= coefficient of determination, r2=square of double
control.
correlation.
Based on Likert scale, it was analyzed every answer of
questionnaires, and furthermore it was calculated the
III. RESEARCH RESULTS AND DISCUSSION
frequency and percentage. It was determined the scale or
The data of research were a number of scores those
weighing of every alternative answer, that given score of 5-4-
obtained from answers of respondences or statements for three
3-2-1. The best score was five (5), and the worst score was
research variables, i.e. variables of Locus of Control (X1), Job
one (1). It was taken pair of researched data, that the number n
Involvement (X2), organizational culture applied by
respondents, so that
employees (Y).
Y
= X1 , X 2
(1)
i −n
( i−n
i − n )
A validity indicates how far the relevance of question to what
where X1=Locus of control, X2=Job involvement, Y= asked or measured in a research, a question can be said valid
organizational culture applied by employees. After the data
and can measure a research variable, if coefficient of validity
were collected, it was analyzed by multiple regressions.
≥ 0.3. Table 1 shows the recapitulation of validity-reliability.
Data transformation from ordinal to interval was to fulfill a

part of requirement of parametric analysis or using regression
TABLE I THE RECAPITULATION OF VALIDITY-RELIABILITY

analysis. It was used MSI (Method of Successive Interval)
transformation.
We used double linear regression to analyze an influence two
variables, dependent with independent variables [11]. The
equation is:
ˆ
Y = a + b X + b X (2)
1
1
2
2
where Y= dependent variable of organizational culture applied
by employees, X1=Locus Of Control, X2=Job Involvement,
a=constant, and
b1, b2 = regression coefficients.
For hypothesis test, it was used statistically test as
JKreg
(3)
F
=
k
cal
JKres (n−(k + )1
where JKreg= double correlation coefficient, JKres= sum
of

total square minus regression square, k=sum of independent

variables, n=sum of samples, with refuse H0 if Fcal > Ftable, so
Based on Table 1, the result of 19 questionnaires to
Ha is accepted (significant). Accepted H0 if Fcal < Ftable, so Ha
respondents has fulfilled the requirements of validity (0.3) and
is refused (not significant).
reliable (0.7).
The double correlation analysis was used to understand a


degree of strength the relations among variables of X1 (locus

of control), X2 (job involvement), and Y (organizational

culture applied by employees). The formula of double


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World Academy of Science, Engineering and Technology 60 2009

TABLE II RESPONDENT RESPONSES ABOUT LOCUS OF CONTROL
effectively indicated by a score as 131. Furthermore, that

number was transformed based on the score interpretation
criterion, so it was obtained 131/150 x 100% = 87.33%. This
number was described in a continuum line, which on very
high category. According to the interview of majority of

employees, they admitted frequently to do initiative in office

activity, such as on establishment of employee performance in
Table 2 describes about locus of control. Based on the
a beginning of year, if there was not something suitable, it had
table, from 30 respondents, only 21 respondents (70%) were
to be discussed to a head section.
on external category, whereas the remains 9 respondents
(30%) were on internal category. This case identified that
TABLE IV RESPONDENT RESPONSE REGARDING CONSISTENCY
most research respondents were on external category. External

Locus of Control, according to Penner is when a people
consider what happen on his/her life is originated from outside
(environments, opportunity, fate). An individual that has
Internal Locus of Control, has more of positive aspect,
compared to that has External Locus of Control. However,
this did not mean the employee of Bank X not have positive
aspects. On site, the performance was influenced by external


environmental factors, such as place of job, opportunity of
Based on the continuum line, the respondent opinion and
leadership role to communicate well to the employees.
attitude to the office rule application became company
In this case, it was described respondent responses responsible and need for all employees, indicated by the score
regarding Job Involvement, that was consists of employee as 128. If this number was transformed based on the score
participation dimension, consistency and motivation. Table 3
interpretation criterion, so that it was obtained 128/150 x
shows the respondent responses regarding the employee 100% = 85.33%. This number, if described in continuum line,
participation.
was on very high category. In site, the employees admitted

that the office rule was company responsible, such as leave
TABLE III RESPONDENT RESPONSES ABOUT EMPLOYEE PARTICIPATION
twice a year.

Based on the continuum line, the respondent opinion and
attitude to the valid consistent policy was very need by the
company, indicated by the score as 135. If this number was
transformed based on the score interpretation criterion, it was
obtained as 135/150 x 100% = 90%. This number, if described
in continuum line, was on very high category. Based on the
interview of majority of employees, they admitted the

consistent policy, so that the performance could conduct well,

such as an establishment of work target on every employee in
Based on continuum line, the opinion and attitude of a year.
respondents to respondent involvement in every office activity

was indicated by the score as 121. If this number is
TABLE V RESPONDENT RESPONSE REGARDING MOTIVATION
transformed based on score interpretation, so that it is

obtained as 121/150 x 100% = 80.67%. This number if
described in the continuum line was on high category. Based
on the interview, it was also obtained the data those most of
employees at Bank X are always involved in office activity,
such as every three months, the section heads do coaching to
performance of employees, and all employees attend.
Based on continuum line, the opinion and attitude of


respondents to obey the rules were awareness form in my self,
Based on the continuum line, the respondent opinion and
indicated by the score as 137. If this is transformed based on
attitude to the always effort to develop career to obtain greater
score interpretation criterion, so that obtained 137/150 x 100%
power was indicated by score as 122. If this number was
= 91.33%. Such number was described in continuum line was
transformed based on the score interpretation criterion, so that
on very high category. Based on the interview, usually the
it was obtained 122/150 x 100% = 81.33%. This number, if
employees of Bank X have had awareness of office rules, such
described in continuum line, was on between very high and
as in a day every employee registers twice, in the morning and
high categories. Like as admission of employees, they reached
afternoon.
a performance in order to obtain job promotion.
Based on continuum line respondent opinion and attitude to
Based on the continuum line, the respondent opinion and
employee job has to have initiative in order to the job do more
attitude to work hard to obtain better career was indicated by

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score as 124. If this number was transformed based on the
TABLE VIII RESPONDENT RESPONSE REGARDING ATTENTION TO BE DETAIL
score interpretation criterion, so that it was obtained 124/150 x

100% = 82.67%. This number, if described in continuum line,
was on very high category. Like as admission of employees,
they worked hard in order to obtain assessment of work well,
and further to influence their career.

After authors analyzed the results in detail, Table 6 below

shows the description of respondent answers in average to Job
Based on the continuum line, the respondent opinion and
Involvement on Bank X.
attitude to always gave priority accuracy in work, indicated by

a score as 126. This was transformed to base on score
TABLE VI STANDARD OF AVERAGE VALUES OF RESPONDENT ANSWERS
interpretation criterion as 126/150 x 100% = 84%. This value
REGARDING JOB INVOLVEMENT

was described on continuum line as very high category. Based
on the interview, especially on Tellers, they paid attention on
the accuracy, due to a part of examination on the work.

TABLE IX RESPONDENT RESPONSES REGARDING ORIENTATION OF RESULTS



Based on Table 6, the average value, obtained from 30
respondents was 4.28, indicated classification level of Job

Involvement, included in very high category. Thus, it was

concluded that generally the Job Involvement in Bank X has
Based on the continuum line, the respondent opinion and
been on very high category. This indicated that the attitude to reach target of funding as company establishment
performance of Bank X was determined by involvement of
indicated with score as 105. This was transformed to base on
employees in the work dominantly, such as how far the score interpretation criterion as 105/150 x 100% = 70%. This
employees worked to reach the established work.
value was described on continuum line as high category. The

employees of customer service admitted to always able to
TABLE VII RESPONDENT RESPONSES REGARDING INNOVATION AND RISK
reach a target through client recruitment.
DECISION
Based on the continuum line, the respondent opinion and
attitude to reach company target was indicated by score as
110. This was transformed to base on score interpretation
criterion as 110/150 x 100% = 73.33%. This value was
described on continuum line as high category. Basically,
according to employees, when evaluation on an ending of


year, they always reached the company target, although it was
Based on the continuum line, the respondent opinion and
not 100% exactly.
attitude to work always be creative and innovative, indicated

TABLE X RESPONDENT RESPONSES REGARDING ORIENTATION OF PEOPLE
by score as 125. This was transformed to base on score

interpretation criterion as 125/150 x 100% = 83.33%. This
value was described on continuum line as very high category.
This was also supported by the employees that had a capable
to use IT for supporting the job or work.
Based on the continuum line, the respondent opinion and
attitude to always take a decision fast and well, indicated by

the score as 122. This was transformed to base on score

interpretation criterion as 122/150 x 100% = 81.33%. This
Based on the continuum line, the respondent opinion and
value was described on continuum line as high category. attitude to always given opportunity by company to be
Based on the interview, the employees admitted always to able
creative indicated by score as 131. This was transformed to
take a decision fast and well, such as a Teller when was
base on score interpretation criterion as 131/150 x 100% =
happened a problem in save transaction, she could look for
87.33%. This value was described on continuum line as high
solution fast.
category. Some employees admitted to be given opportunity to

be creative when they worked, such as how behaviors when

they serviced clients in order to be satisfy (Teller, Customer


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Service).
was described on between high and very high categories.
Based on the continuum line, the respondent opinion and Based on the interview results, this was indicated by an
attitude to always ready to face all risks in the jobs was
achievement of employee performance, so that they could
indicated by the score as 120. This was transformed to base on
collect more number of clients, compared to other Bank.
score interpretation criterion as 120/150 x 100% = 80%. This

value was described on continuum line as high category.
TABLE XIII RESPONDENT RESPONSE REGARDING STABILIZATION

According to the interview results, almost employees
admitted, ready to face any risk, such as whether reach or not
a target of job.


TABLE XI RESPONDENT RESPONSES REGARDING TEAM ORIENTATION


Based on the continuum line, the respondent opinion and
attitude to feel on a conducive environment of work was
indicated by the score as 123. This was transformed to base on
score interpretation criterion as 123/150 x 100% = 82%. This
value was described on high category. Based on the interview
results, it was indicated that the employees would be

comfortable.

After authors analyzed the results in detail, Table 14 below
Based on the continuum line, the respondent opinion and
describes the respondent answers in average to organizational
attitude to establish office policy always base on agreement
culture applied by employees at Bank X.
together was indicated by the score as 126. This was
transformed to base on score interpretation criterion as
TABLE XIV AVERAGE VALUE STANDARDS OF RESPONDENT ANSWER OF
126/150 x 100% = 84%. This value was described on
ORGANIZATIONAL CULTURE APPLICATION
continuum line between high and very high categories. Based

on the interview results, this was indicated by an
establishment of job on early year where head section would
socialize to the employees, whether be agreed or not.
Based on the continuum line, the respondent opinion and
attitude to applied policy in the office suitable with

importance of individual and group, was indicated by score as

107. This was transformed to base on score interpretation
Based on table 14 above, the obtained average value of 30
criterion as 107/150 x 100% = 71.33%. This value was respondents was 3.99, indicate classification level of
described on high category of continuum line. Based on the
employees apply organizational culture as high category.
interview results, this was indicated by the establishment of
Thus, it was concluded generally the organizational culture
employee performance in early year, where the head section
applied by employees at Bank X has been on high category.
would socialize, and then whether be agreed of not by the
This was also supported the statement by the head section
employees.
when interview progress. One of indications was the

increasing of performance every year.
TABLE XII RESPONDENT RESPONSE REGARDING AGGRESSIVENESS
To see how far the influence of Locus of Control (X

1) and
Job Involvement (X2) to application of organizational culture
applied by employees at Bank X, it was used double
regression model. To be easy on calculation, it was included
all independent variables (predictors) for analysis. Thus, it is

obtained the equation of double regression as follows.


Based on the continuum line, the respondent opinion and
ˆ
Y =
.
14 666 + 7 934
.
X + 0 550
.
X
attitude to the employees to have high initiative was indicated
(6)
1
2
by the score as 120. This was transformed to base on score

interpretation criterion as 120/150 x 100% = 80%. This value
The values of regression coefficient on independent variables
was described on between high and very high categories. described if one independent variable rose as one unit, and
Based on the interview results, this was indicated by employee
another independent variable was constant or closed to zero
initiative when propose an objection to the head section.
practically, so that the bonded variable value was
Based on the continuum line, the respondent opinion and approximated to increase or decrease suitable with the sign of
attitude to enough skill to be competitive was indicated by the
regression coefficient of independent variables.
score as 120. This was transformed to base on score
From the double linear regression equation above, it was
interpretation criterion as 120/150 x 100% = 80%. This value
the constant value as 14.666. This mean, if the organizational

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World Academy of Science, Engineering and Technology 60 2009

culture applied by employees was influenced by both culture applied by employees was of 13.6%. Based on this
independent variables, locus of control (X
research, locus of control and job involvement could influence
1) and job
involvement (X
to the organizational culture applied by employees
2) were zero, so that the average value of
application organizational culture would be 14.666.
simultaneously. Nevertheless, the most influence variable was
The sign of regression coefficient of independent variables
locus of control.
indicated arrow of relation from the corresponding variables
to the dependent variable. The value of regression coefficient
IV. CONCLUSION
for independent variable X1 (locus of control) was positive,
Based on the research results, the analysis and supporting
indicated an existence of relation as same direction between
theory, most Locus of Control employee at Bank X was on
locus of control and the organizational culture applied by external category, with the number of respondents of 21 or
employees. The meaned of regression coefficient of locus of
70% of population. Job Involvement on Bank X has been on
control variable as 7.934 was for every increasing of locus of
very high category, indicated by average value of 4.28. The
control of one unit, it caused increasing of the organizational
organizational culture applied by employees on Bank X has
culture applied by employees as 7.934.
been on high category, indicated by the average value as 3.99.
The regression coefficient of independent variable X
Locus of Control had the influence of 44.8% to the
2 (job
organizational culture applied by employees. Job Involvement
involvement) was positive, indicated the existence of relation
had the influence as amount of 13.6% to the organizational
as same direction between job involvement and the culture applied by employees. Locus of Control and Job
organizational culture applied by employees. The regression
Involvement had the influence as amount of 58.3% to the
coefficient of job involvement variable as 0.550 contained
organizational culture applied by employees.
meaning for every increasing of one unit of the organizational
culture applied by employees, it caused the increasing of the
ACKNOWLEDGMENT
organizational culture applied by employees as 0.550.
Authors herewith respectfully offer thanks to Bank X for
The double correlation was used to understand how
closeness between locus of control and job involvement to the
the object of research and Higher Education Directorate of
organizational culture applied by employees. Based on the
Indonesia Government for financial support of this
obtained table result, it was obtained the correlation conference.
coefficient value (R) as 0.764. This correlation coefficient was
positive sign, that meaned there was strong relation between
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Based on Table 15, it is indicated that independent variables
has most influence to the organizational culture applied by
employees was locus of control (X1), i.e. 44.8%. Whereas, job
involvement (X2) gave the influence of the organizational

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