The Effect of Organizational Culture on Organizational Effectiveness: Case Study on Hotel-x Jakarta

Over a decade, the study of organizational culture and organization effectiveness has become more important and interesting. Organizational culture is formed through the behavior and beliefs of each person in one organization, while organizational effectiveness can ensure continuity of an organization's life and survival (Dizgah, 2011). Although many scholars have conducted study about organizational culture and organizational effectiveness, there is little attention given to this study in hotel industry, especially in Indonesia. An introduction of the relationship between the organizational culture and organizational effectiveness has been established in conceptual framework, with a case study in one of five stars hotel in Jakarta. Then, the understandings of theoretical are translated into Structural Equation Modeling (SEM) model. The SEM analysis discloses that there is significant influence of organizational culture to the organizational effectiveness and strategic direction tends to be the strongest factor loading of organizational culture that affects organizational effectiveness significantly