THE ROLE OF INNOVATION BEHAVIOR IN MEDIATING THE INFLUENCE OF ORGANIZATIONAL CULTURE ON LPD EMPLOYEE PERFORMANCE IN BADUNG DISTRICT

  Village Credit Institutions (LPD) are a type of service business. In the service industry the role of human resources is very strategic because it affects the image and performance of the organization, therefore the management of Human Resources (HR) plays an important role in achieving organizational goals. Increased business competition between organizations in gaining profits, customers, and achieving their goals shows the important role of managers in these efforts. Dynamizing the external environment also demands the importance of the organization's ability to innovate.

   In many cases, creative and innovative organizations have a greater chance of success than passive and reactive organizations. The rapid changes in the external environment encourage the need for an understanding of organizational culture and the existence of an appropriate organizational culture. To face competition, of course, must be accompanied by a hard effort at each company, in addition to the product the participation of marketers is also very necessary. Innovation is needed to stay afloat in the world market. With innovation, organizations will be able to respond to challenges, be able to survive and more easily develop.

Kotter and Hesket in their research found that companies that embrace a culture of customer orientation, shareholders and employees as well as managerial leadership at all levels, are able to outperform companies that do not have such a culture. Second, organizational culture can be a key factor determining the success or failure of a company. Third, even though it is difficult the organizational culture can be changed in such a way that it further supports performance.

The results of evaluations carried out on LPD employees in Badung Regency revealed that the majority of employees were unable to meet the targets set by the LPD, so this shows that the quality of the work of the employees to complete the work is still low. Given the importance of employee performance, the need for planned, directed, intensive, effective and efficient human resource management. Failure to manage human resources can result in disruption in the achievement of organizational goals, profits, and organizational survival. Managers should understand that success in improving performance and productivity must involve employees because employees are not only a major force in bringing about change, but also increasingly actively participating in planning changes (Robbins and Judge 2012: 143). Gupta and Sharon (2013) explained that companies need employees who are able to work better and faster, so that employees who have high performance are needed.