What Determines Work Discipline and Performance? An Empirical Study in Indonesia

The purpose of this research is to look into the effects of organizational culture and training and development on work discipline and performance. The data for this study was directly obtained from employees of a municipal water corporation in Medan, Indonesia, with a total of 204 participants. Partial Least Square Structural Equation Modeling (PLS-SEM) was applied for data analysis. The results showed that organizational culture and training and development positively and significantly affect performance. However, organizational culture and training & development positively affect employees' work discipline, albeit insignificantly. The findings of this study suggest that organizational culture and training and development play a critical role in shaping work discipline and performance in organizations in Indonesian settings. Therefore, the finding of this research engage all leaders in the organization to conduct training and development more intensively. Although it seems to have costly, this will have a good impact on the organization in the long run. Furthermore, the authors also suggest the creation of a solid organizational culture for every organization to foster excellent performance. However, each organization should choose its own acceptable organizational culture because it is possible that the organizational culture that works in one context does not work in another.