Effect of Leadership Style, Organizational Culture and Job Satisfaction on Employee Performance

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Human resources have a very important role in an organization, because human resources can be one of the factors that are directly involved in carrying out organizational activities and play a role in improving the organization in achieving its stated goals. In an increasingly challenging and complex workplace, practitioners and scholars have recognized the importance of effective human resource management for individual performance and subsequently for organizational success (Cesário & Chambel, 2017). This research has also suggested that organizations can promote human resource practices that are oriented towards commitment to achieving organizational goals and producing good quality work.

Organizations that succeed in achieving their goals will also depend heavily on their leaders. Leaders who are able to carry out their duties well, it is very likely that the organization will achieve its goals. Leaders also really need to pay attention to their leadership style in the process of directing and influencing the activities of their subordinates and coordinating subordinate goals and organizational goals so that both can be achieved. Leadership style is often considered the most important factor of organizational success or failure. According to Efendi & Graduate, (2020) leadership style is the ability to provide constructive influence to others or around to make collaborative efforts to achieve planned goals. Thus, leadership is an effort to influence employees by mobilizing available resources effectively and efficiently in the entire management process to achieve the desired goals and create good quality work.

In addition to an effective leadership style needed in an organization to be able to improve employee performance in achieving predetermined goals, the leader will also form an organizational culture. Schein (2009) states that a leader shapes culture and in turn is shaped by the resulting culture. Observe that organizational culture and leadership are interrelated and illustrate this interconnection by looking at the relationship between leadership and culture in the context of the organizational life cycle. Organizational culture is a symbol and value that is shared by all members of the organization. Organizational culture is known to bind employees together and provide direction for company growth (Pawirosumarto et al., 2017). Organizational culture will determine how employees’ complete tasks and interact with each other in the organization (Narayana, 2017). This cultural pattern consists of various values, beliefs, rituals and symbols that govern the community’s operating style in a company.

The Regional Revenue Agency of East Java Province is an agency in charge of carrying out regional government affairs based on the principle of autonomy. State Civil Apparatus within the Regional Revenue Agency of East Java Province in their work activities are known to always emphasize all apparatus resources to achieve high performance and achieve organizational goals appropriately. In achieving high employee performance, there are always many factors that influence it, including job satisfaction factors, discipline factors, communication factors, experience factors, work environment factors, competency factors, organizational culture factors, and commitment factors. However, according to observations made by researchers, various problems were found in the research location, namely the Regional Revenue Agency of East Java Province. The existence of a leadership style that is less assertive, and the absence of firm sanctions. Work discipline and work order regulations have been set forth in complete work procedures but are still formalities, have not been implemented properly, and are far from being actualized in the form of real actions. Employee dedication and loyalty are still low, there are even employees who are wrong in applying loyalty only to their superiors, but are not loyal to the vision, mission and duties of their institution.

In this regard, it is necessary to conduct research to determine what factors affect the performance of employees of the Regional Revenue Agency of East Java Province, by examining various factors that affect employee performance, which are expected to obtain an overview of matters related to employee performance improvement. This study tries to examine the factors, namely leadership style, organizational culture, and job satisfaction in improving the performance of employees of the Regional Revenue Agency of East Java Province with organizational commitment as an intervening variable. Based on the results and discussion that has been done, the conclusions that can be drawn in this study are that leadership style has no significant effect on employee performance, organizational culture has a significant effect on employee performance, job satisfaction has no significant effect on employee performance, organizational commitment has a significant effect on employee performance. , and the mediating effect of organizational commitment is only aimed at the effect of job satisfaction on employee performance (full mediation). This is supported by a statement from Cesário & Chambel, (2017) that recognizing the importance of effective human resource management is useful for individual performance and then for organizational success. Thus this study looks at the influence of leadership style variables, organizational culture, job satisfaction, and organizational commitment to direct and influence the improvement of their employees’ performance. In the research results, it is known that the variable of leadership style does not support this aspect in significantly affecting employee performance improvement. And through the variable job satisfaction can only be passed with the help of mediation of organizational commitment. So that in this study, in directing and influencing employee performance improvement, it can be seen from the influence of organizational culture, job satisfaction, and organizational commitment. It is intended to be able to achieve the main goals of the organization, achieve organizational competitive advantage, and achieve sustainable growth for the organization.

The results of this study can be used as recommendations by the company’s management regarding leadership style, organizational culture and job satisfaction with performance with organizational commitment as an intervening variable. This can affect the increase in leadership style by increasing the suitability of leadership actions with organizational regulations, can affect the improvement of organizational culture by increasing the warm attitude (friendly) of employees in relationships, can affect the increase in employee job satisfaction by increasing employee preference for responsibility for their respective jobs. , can affect the increase in organizational commitment by increasing the feeling of pride of employees towards their offices, and can affect the increase in employee performance by increasing the ability of employees to carry out work on time. Thus, through aspects of leadership style, organizational culture, job satisfaction, and organizational commitment, good attention can affect the improvement of employee performance in a company. So that it is hoped that it can help in achieving organizational goals effectively and efficiently and still producing good quality work.

Author: Prof. Dr. Anis Eliyana, S.E., M.Si.

Details of this research available at:

http://www.sysrevpharm.org//index.php?fulltxt=29735&fulltxtj=196&fulltxtp=196-1605193192.pdf

(The effect of leadership style,  organizational culture and job satisfaction on employee performance with organizational commitment as the intervening variable)

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