The Role of Organizational Culture and Job Satisfaction in Enhancing Employee Performance in the Hospital Sector

Int. J. of Management, Entrepreneurship, Social Science and Humanities, Vol. 9 No. 2 (2025) https://doi.org/10.31098/ijmesh.v9i2.3889 Research Paper The Role of Organizational Culture and Job Satisfaction in Enhancing Employee Performance in the Hospital Sector Paskalia Aek Klau, Maria Widyarini* , Kevin Grahadian Parahyangan Catholic University, Indonesia Received : October 29, 2025 Revised : November 19, 2025 Accepted : December 5, 2025 Online : December 28, 2025 Abstract This study examines the influence of organizational culture and job satisfaction on employee performance at Private Hospital Type C, Central Java. Hospitals face unique human resource management challenges, including high workloads and expectations for service quality, making organizational culture and job satisfaction critical to optimizing performance. Using a quantitative approach, data were collected from 201 healthcare workers through a structured questionnaire utilizing a Likert scale. The data were analyzed using descriptive statistics and linear regression. The findings reveal that both organizational culture and job satisfaction significantly affect employee performance, with strong statistical significance. The variance in employee performance is explained by these two factors by 65.1%. These results confirm that a positive organizational culture and high job satisfaction contribute substantially to enhancing staff performance in hospital settings. The findings also align with the hospital’s mission, vision, and core values, emphasizing holistic care, teamwork, and professional integrity. Strengthening organizational culture and addressing job satisfaction can serve as effective strategies for hospital management to improve service quality and operational efficiency. Keywords: Organizational Culture, Job Satisfaction, Employee Performance, Hospital, Human Resource Management. INTRODUCTION The Indonesian healthcare sector continues to struggle with high perceived workload and role overload among health workers, which has been shown to reduce service quality, increase stress, and weaken employee performance (Boyle & Plummer, 2017). These pressures also influence job satisfaction, especially in hospitals where medical and administrative staff operate under strict service demands, limited resources, and expectations for continuous patient-centered improvement. (Pratama & Yufika, 2023). Furthermore, understanding the factors that shape employee performance is essential for maintaining service quality in hospital settings, particularly in private hospitals operating with tighter constraints than large public institutions. One way to overcome stress levels is through organizational culture (Thompson et al., 1996; Williams et al., 2007). Organizational culture represents the shared values, norms, and behavioral expectations that shape how individuals work and interact within an institution. Organizational culture is a fundamental element that influences individual performance and impacts the quality of health services provided to patients (Abdullah Alharbi et al., 2024; Acar & Acar, 2012; Tannady et al., 2019). According to some research, a strong organizational culture can increase employee engagement, loyalty, and workforce productivity (Abbas, 2017; Hamkar & Watanyar, 2024; Puspita et al., 2020). A positive organizational culture, supported by open communication, innovation, and employee well-being, has the potential to create a healthier and more conducive work environment Copyright Holder: © Paskalia, Maria & Kevin. (2025) Corresponding author’s email: This Article is Licensed Under: International J. of Management, Entrepreneurship, Social Science and Humanities. (Hoxha et al., 2024), offering hope for a better work environment in the health sector. Aruldoss et al. (2022) explain that job satisfaction reflects the extent to which individuals feel comfortable and satisfied with their work, including rewards, work environment, development opportunities, and work-life balance. Some studies show that high job satisfaction contributes to increased intrinsic motivation, which is the internal drive to perform a task for its own sake, and reduced burnout rates among health workers, ultimately positively impacting individual and organizational performance (Ayalew et al., 2021; Mafini & Dlodlo, 2014; Schaufeli & De Witte, 2023). A similar study was also conducted in a case study where the hospital implemented a holistic approach and emphasized compassionate care as a central aspect of its service delivery (Ashidiqi et al., 2025). Existing research has examined organizational dynamics from the perspective of patients, providing insight into service outcomes and satisfaction. However, fewer studies talk about how employees themselves perceive and evaluate these same organizational dynamics. To address this gap, the present study shifts the analytical focus to employees’ perspectives, offering an internal view that complements the predominantly patient-centered literature and delivers a more comprehensive understanding of organizational functioning. Based on the above explanation, the aim of this research is to: 1. Analyze the effect of organizational culture on Employee Performance 2. Analyze the effect of job satisfaction on employee performance 3. Analyze the findings with Private Hospital type C operationals Prior studies on organizational behavior in Indonesian healthcare have largely focused on service quality from the patient’s perspective, leaving a limited understanding of how employees in private Type C hospitals perceive their organizational culture and job satisfaction. This is an important gap because the work dynamics, resource constraints, and operational structures of Type C hospitals differ significantly from larger public or private institutions, meaning that employee experiences and their effects on performance may also differ. Few studies have examined how staff in these smaller hospitals internalize cultural values, respond to workplace conditions, or translate these perceptions into performance outcomes, making this area underexplored in the existing literature. This study makes two distinct contributions. Theoretically, it extends organizational culture research by providing empirical evidence on how organizational culture and job satisfaction shape employee performance within the context of Indonesian private Type C hospitals, an understudied segment of the healthcare system. Practically, the study offers concrete, evidence-based recommendations for hospital management, especially in strengthening cultural alignment, improving job satisfaction, and designing human resource policies that enhance performance and service quality. LITERATURE REVIEW Organizational Culture Organizational culture is usually defined as the shared values, beliefs, and norms that influence how employees behave and work within an organization (Akpa et al., 2021; Cooke & Rousseau, 1988; Sun, 20 (...truncated)