International Journal of Research and Review DOI: https://doi.org/10.52403/ijrr.20211122 Vol.8; Issue: 11; November 2021 Website: www.ijrrjournal.com Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237 International Journal of Research and Review (ijrrjournal.com) 163 Vol.8; Issue: 11; November 2021 The Role of Management Competency in Moderating Organizational Cultural Relations to LPD Performance in Bali Province Ni Putu Rediatni Giri 1 , Ketut Sudarmini 2 , Nengah Ganawati 3 1,2,3 Department of Management, Faculty of Economic and Business, Warmadewa University, Denpasar-Bali, Indonesia Corresponding Author: Nengah Ganawati ABSTRACT This study examines the role of management competence in moderating the relationship between organizational culture and LPD performance. It is hoped that with this model, LPD can optimize everything related to organizational culture and management competence so that it can have positive implications for improving organizational performance. The population of this research is LPD registered and still active in Denpasar City and Badung Regency. The sampling method in this study used the saturated sampling method with a total of 157 samples. This study uses the Structural Equation Modeling (SEM) analysis tool with the SmartPLS version 3.2.9 program used to test the hypothesis. Keywords: Organizational Culture, Management Competence, Organizational Performance INTRODUCTION The Village Credit Institution (LPD) is an institution established specifically for the benefit of the welfare of the Pakraman village community, in its activities it only serves and protects the Pakraman village community. LPD has an important role in serving the residents of Pakraman Village, including small, micro and household businesses in Pakraman Village, which meet the expectations of customers, namely simple procedures, fast processes, and proximity to locations. In addition, the reality is that in saving and providing credit, it is not only given to the community where the LPD operates, but it is also distributed in other Pakraman villages. LPD continues to be developed into a strong and healthy financial institution belonging to Pakraman Village. However, not all LPDs have healthy financial performance. As with the problematic LPD case that occurred in Tabanan Regency. Of the 307 existing LPDs, 60 of them were declared sick. LPD which has been experiencing problems due to mismanagement of funds. The management of these funds, for example, provides loans to customers outside the village of Perkraman, provides loans without collateral and adds to the weakness of human resources (HR) as LPD managers. The phenomenon of LPD performance which is still low, can be seen in the many cases that have ensnared LPD administrators, both corruption cases and other fraud cases in various regions in Bali. In today's increasingly competitive conditions, to realize organizational performance there are several factors that must be considered and known by academics and practitioners. One of the factors that influence organizational performance is organizational culture (Soedjono, 2005) and (Brahmasari and Suprayetno, 2008). The current organizational culture is the result of various situations related to various organizational problems, one of which is LPD. With the phenomenon of the LPD management scandal and the financial performance that