Exploring Effects of Organizational Culture, Reward Mechanisms, and Mood on Employee Performance in Service-Based Industries

This study explored the impact of organizational culture, reward mechanisms, and employee mood on employee performance in service-based industries. A total of 210 employees from various service sector companies in Makassar, Indonesia participated in this study, and data were collected through a structured questionnaire distributed via Google Forms. The hypotheses were tested using Structural Equation Modeling (SEM) with SmartPLS. The results indicate significant relationships for all three factors. Hypothesis 1 (H1) examines the impact of reward mechanisms on employee performance (p-value = 0.011), confirming that rewards, both intrinsic and extrinsic, positively influence performance. Hypothesis 2 (H2) focuses on the effect of organizational culture on performance (p = 0.017), suggesting that a positive organizational culture enhances employee engagement and performance. Finally, Hypothesis 3 (H3) investigated the relationship between employee mood and performance (p-value = 0.000), highlighting the strong influence of positive mood on employee performance. These findings emphasize the importance of organizational culture, reward systems, and mood management in optimizing employee performance, particularly in service-based industries, where customer interactions are key. The study’s limitations include its reliance on self-reported data and its focus on a single geographic location. Future research should include broader variables, longitudinal studies, and more diverse samples to enhance generalizability.