The Effect of Organizational Culture, Human Resource Competency, and Effectiveness of Supervision on LPD Performance in Tabanan Regency

ABSTRACT: LPD as a traditional-based financial institution has an important role as an economic driver for rural communities. However, over time, practices often occur that have an impact on the lack of public trust in LPD performance, one of which is the misuse of customer funds for personal interests. This study aims to prove the influence of organizational culture, human resource competence, and effectiveness of supervision on LPD performance. The data used in this study were respondents’ answers to statements in the questionnaire, and the sample was determined by purposive sampling method so that a sample of 104 LPDs were obtained. The data analysis technique used is multiple linear regression. Based on the analysis results show that the variables of organizational culture, HR competence, and effectiveness of supervision have a positive effect on LPD performance. The implication of the results of this study is that it can be a motivation for LPD managers related to the importance of control aspects in the form of organizational culture and supervision to direct LPD performance in a better direction according to community expectations, and also supported by efforts to improve HR competencies.

KEYWORDS: Organizational culture, HR Competence, Effectiveness of supervision, LPD performance