The Effect of Organizational Trust and Organizational Citizenship Behavior on Employee Performance

¹ Department of Management, Faculty of Business and Economics, Petra Christian University, Siwalankerto 121–131, Surabaya 60236, Indonesia.
² School of Earth and Environmental Sciences, Queensland University, St. Lucia QLD 4057, Australia

^* Corresponding author: sautma@petra.ac.id

Abstract

Trust given by the company to each of the employees can motivate them to contribute to the company development. Employees got to motivate themselves internally to improve their role in the organization for winning the competition. The purpose of this research is to investigate the effect of organizational trust and organizational citizenship behavior towards employee performance in Fave Hotel Rungkut Surabaya, Indonesia. Fave Hotel needs to empower the employee to improve their competitiveness. The surveys were distributed to permanent employees who have been working for at least one year. There were 52 persons who filled the surveys. The surveys used a Likert scale. The data was processed using Partial Least Square software. First, the results indicated that organizational trust affects organizational citizenship behaviors. Second, organizational trust affects company performance. Third, organizational citizenship behavior affects employee performance. Fourth, organizational citizenship as an intervening variable can improve organizational trust for employee performance. Fave Hotel commits to empower their employee through organizational trust and improves employee’s role with organizational citizenship behavior.