The Influence of Leadership Style on Employee Performance: The Role of Employee Motivation at PT AHI Tbk
DOI:
https://doi.org/10.38035/jafm.v5i4.826Keywords:
Leadership Style, Work Environment, Motivation, Employee Performance, PT. AHI TbkAbstract
This study aims to analyze the impact of leadership style, work environment, and motivation on employee performance at PT. AHI Tbk. Using a quantitative method with a sample of 200 employees, data were analyzed using Smart PLS 3. The results indicate that leadership style has a significant effect on employee performance, with a t-statistic of 4.326 and a p-value of 0.000. Conversely, the work environment did not show a significant effect on employee performance, as evidenced by a t-statistic of 1.253 and a p-value of 0.211. Additionally, motivation did not function as a significant mediator between leadership style and employee performance. These findings suggest that improving employee performance can be achieved through the development of effective leadership styles, although the work environment aspects require further evaluation. The recommendations generated from this study include enhancing leadership training programs, improving working conditions, and focusing on employee motivation development. This research is expected to provide insights for management and stakeholders to improve employee performance through a more holistic approach.
References
Ademola Amussah. 2020. “Leadership Styles and Its Impact on Leadership Styles and Its Impact On.” Nea R East University Graduate.
Adetola, Odugbesan Jamiu, Sahar Aghazadeh, and Maryam Abdullahi. 2021. “Perceived Environmental Concern, Knowledge, and Intention to Visit Green Hotels: Do Perceived Consumption Values Matter?” Pakistan Journal of Commerce and Social Science 15(2):240–64.
Adrian Putra Ariussanto, Kenny, Zeplin Jiwa Husada Tarigan, Rismawati Br Sitepu, and Sanju Kumar Singh. 2020. “Leadership Style, Employee Engagement, and Work Environment to Employee Performance in Manufacturing Companies.” SHS Web of Conferences 76:01020. doi: 10.1051/shsconf/20207601020.
Agarwal, Sugandha. 2020. “Leadership Style and Performance of Employees.” International Research Journal of Business Studies 13(1):1–14. doi: 10.21632/irjbs.13.1.1-14.
Alsafadi, Yousef, and Shadi Altahat. 2021. “Human Resource Management Practices and Employee Performance: The Role of Job Satisfaction.” Journal of Asian Finance, Economics and Business 8(1):519–29. doi: 10.13106/jafeb.2021.vol8.no1.519.
B. Reena, Rosalia H. Bonjour. 2011. “Strength for Today and Bright Hope for Tomorrow.” Ejournal.Narotama.Ac.Id 11(June):92–101.
Bangwal, Deepak, Prakash Tiwari, and Pankaj Chamola. 2017. “Green HRM, Work-Life And Environment Performance.” International Journal Environment, Workplace and Employment 4(3):244–68.
BASS, BERNARD M. 2013. “From Transactional to Transformational Leadership: Learning to Share the Vision.” Acorn 19(3):4–6.
Bikefe, Grace George, and Cross Ogohi Daniel. 2022. “Employee Retention Practices and the Performance of Small and Medium Enterprises (SMEs) in Nigeria.” WSEAS Transactions on Business and Economics 19(September):1493–1506. doi: 10.37394/23207.2022.19.134.
Caillier, James Gerard. 2020. “Testing the Influence of Autocratic Leadership, Democratic Leadership, and Public Service Motivation on Citizen Ratings of An Agency Head’s Performance.” Public Performance and Management Review 43(4):918–41. doi: 10.1080/15309576.2020.1730919.
Chien, Grace C. L., Iris Mao, Enkhzaya Nergui, and Wanching Chang. 2020. “The Effect of Work Motivation on Employee Performance: Empirical Evidence from 4-Star Hotels in Mongolia.” Journal of Human Resources in Hospitality and Tourism 19(4):473–95. doi: 10.1080/15332845.2020.1763766.
Dastane, Omkar. 2020. “Impact of Leadership Styles on Employee Performance: A Moderating Role of Gender.” Australian Journal of Business and Management Research 5(12):27–52. doi: 10.52283/nswrca.ajbmr.20210512a03.
Davidescu, Adriana Ana Maria, Simona Andreea Apostu, Andreea Paul, and Ionut Casuneanu. 2020. “Work Flexibility, Job Satisfaction, and Job Performance among Romanian Employees-Implications for Sustainable Human Resource Management.” Sustainability (Switzerland) 12(15). doi: 10.3390/su12156086.
Dittes, Sven, and Stefan Smolnik. 2019. “Towards a Digital Work Environment: The Influence of Collaboration and Networking on Employee Performance within an Enterprise Social Media Platform.” Journal of Business Economics 89(8–9):1215–43. doi: 10.1007/s11573-019-00951-4.
Fakhri, Mahendra, Mahir Pradana, Syarifuddin Syarifuddin, and Yozi Suhendra. 2020. “Leadership Style and Its Impact on Employee Performance at Indonesian National Electricity Company.” The Open Psychology Journal 13(1):321–25. doi: 10.2174/1874350102013010321.
Filgona, Jacob, John Sakiyo, D. M. Gwany, and A. U. Okoronka. 2020. “Motivation in Learning.” Asian Journal of Education and Social Studies 10(4):16–37. doi: 10.9734/ajess/2020/v10i430273.
Fonseca Da Costa Guterresa, Luisinha, Armanu, and Rofiaty. 2020. “The Role of Work Motivation as a Mediator on the Influence of Education-Training and Leadership Style on Employee Performance.” Management Science Letters 10(7):1497–1504. doi: 10.5267/j.msl.2019.12.017.
G.Northouse, Peter. 2018. Leadership. Theory and Practice .Seventh Edition. Vol. 24. seventh ed. edited by P. G. Northouse. Thousand oaks, California 91320: SAGE Publications, Inc.
Gagné, Marylène, Jacques Forest, Maarten Vansteenkiste, Laurence Crevier-Braud, Anja van den Broeck, Ann Kristin Aspeli, Jenny Bellerose, Charles Benabou, Emanuela Chemolli, Stefan Tomas Güntert, Hallgeir Halvari, Devani Laksmi Indiyastuti, Peter A. Johnson, Marianne Hauan Molstad, Mathias Naudin, Assane Ndao, Anja Hagen Olafsen, Patrice Roussel, Zheni Wang, and Cathrine Westbye. 2015. “The Multidimensional Work Motivation Scale: Validation Evidence in Seven Languages and Nine Countries.” European Journal of Work and Organizational Psychology 24(2):178–96. doi: 10.1080/1359432X.2013.877892.
Ghazzawi, Khalil, Radwan Choughri, Radwan El Shoughari, and Bernard El Osta. 2017. “Situational Leadership and Its Effectiveness in Rising Employee Productivity: A Study on North Lebanon Organization Business Analytics Importance and Implementation View Project Risk Management View Project Situational Leadership and Its Effectiveness In .” Human Resource Management Research 2017(3):102–10. doi: 10.5923/j.hrmr.20170703.02.
Gravina, Nicole, Jessica Nastasi, and John Austin. 2021. “Assessment of Employee Performance.” Journal of Organizational Behavior Management 41(2):124–49. doi: 10.1080/01608061.2020.1869136.
Gullifor, Daniel P., Oleg V. Petrenko, Jeffrey A. Chandler, Matthew J. Quade, and Yury Rouba. 2023. “Employee Reactions to Perceived CSR: The Influence of the Ethical Environment on OCB Engagement and Individual Performance.” Journal of Business Research 161(November 2021):113835. doi: 10.1016/j.jbusres.2023.113835.
Hair, Joseph F. 2021. Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R A Workbook. Vol. 30.
Hajiali, Ismail, Andi Muhammad Fara Kessi, B. Budiandriani, Etik Prihatin, Muhammad Mukhlis Sufri, and Acai Sudirman. 2022. “Determination of Work Motivation, Leadership Style, Employee Competence on Job Satisfaction and Employee Performance.” Golden Ratio of Human Resource Management 2(1):57–69. doi: 10.52970/grhrm.v2i1.160.
Herzberg, Frederick. 1959. The Motivation to Work. New York: Holy Wiley & Sons.
Hilton, Sam Kris, Helen Arkorful, and Albert Martins. 2021. “Democratic Leadership and Organizational Performance: The Moderating Effect of Contingent Reward.” Management Research Review 44(7):1042–58. doi: 10.1108/MRR-04-2020-0237.
Jayaweera, Thushel. 2015. “Impact of Work Environmental Factors on Job Performance, Mediating Role of Work Motivation: A Study of Hotel Sector in England.” International Journal of Business and Management 10(3):271–78. doi: 10.5539/ijbm.v10n3p271.
Kafetzopoulos, Dimitrios, and Katerina Gotzamani. 2022. “The Effect of Talent Management and Leadership Styles on Firms’ Sustainable Performance.” European Business Review 34(6):837–57. doi: 10.1108/EBR-07-2021-0148.
Kjaer, Louise Laumann, Daniela C. A. Pigosso, Tim C. McAloone, and Morten Birkved. 2018. “Guidelines for Evaluating the Environmental Performance of Product/Service-Systems through Life Cycle Assessment.” Journal of Cleaner Production 190:666–78. doi: 10.1016/j.jclepro.2018.04.108.
Kohnen, Dorothea, Hans De Witte, Wilmar B. Schaufeli, Simon Dello, Luk Bruyneel, and Walter Sermeus. 2023. “What Makes Nurses Flourish at Work? How the Perceived Clinical Work Environment Relates to Nurse Motivation and Well-Being: A Cross-Sectional Study.” International Journal of Nursing Studies 148:104567. doi: 10.1016/j.ijnurstu.2023.104567.
Kyambade, Mahadih, Daud Bartazary, Afulah Namatovu, and Monica Tushabe. 2024. “Authentic Leadership and Performance of Public Servants in Tanzania Context: The Mediation Role of Motivation.” International Journal of Public Leadership. doi: 10.1108/IJPL-03-2024-0031.
Lamb, S., and K. C. S. Kwok. 2016. “A Longitudinal Investigation of Work Environment Stressors on the Performance and Wellbeing of Office Workers.” Applied Ergonomics 52:104–11. doi: 10.1016/j.apergo.2015.07.010.
Lee, Chun Chang, Yei Shian Li, Wen Chih Yeh, and Zheng Yu. 2022. “The Effects of Leader Emotional Intelligence, Leadership Styles, Organizational Commitment, and Trust on Job Performance in the Real Estate Brokerage Industry.” Frontiers in Psychology 13(May). doi: 10.3389/fpsyg.2022.881725.
Legault, Lisa. 2016. “Encyclopedia of Personality and Individual Differences.” Encyclopedia of Personality and Individual Differences (November 2016). doi: 10.1007/978-3-319-28099-8.
Li, Bin, Weinan Yu, Yongxin Lei, and Mingqi Hu. 2023. “How Does Spiritual Leadership Inspire Employees’ Innovative Behavior? The Role of Psychological Capital and Intrinsic Motivation.” Revue Europeenne de Psychologie Appliquee 73(6):100905. doi: 10.1016/j.erap.2023.100905.
Liaquat, Malka, Ghina Ahmed, Hina Ismail, Qurat Ul Ain, Saadia Irshad, Syeda Sadaf Izhar, and Muhammad Tariq Mughal. 2024. “Impact of Motivational Factors and Green Behaviors on Employee Environmental Performance.” Research in Globalization 8(December 2023):100180. doi: 10.1016/j.resglo.2023.100180.
Liu, I. Fan. 2020. “The Impact of Extrinsic Motivation, Intrinsic Motivation, and Social Self-Efficacy on English Competition Participation Intentions of Pre-College Learners: Differences between High School and Vocational Students in Taiwan.” Learning and Motivation 72(February):101675. doi: 10.1016/j.lmot.2020.101675.
Locke, Edwin A., and Kaspar Schattke. 2018. “Intrinsic and Extrinsic Motivation: Time for Expansion and Clarification.” Motivation Science 5(4):277–90. doi: 10.1037/mot0000116.
Mohamed, Zenat, Mahmoud M. Ismail, and Amal F. Abd El-Gawad. 2023. “Analysis Impact of Intrinsic and Extrinsic Motivation on Job Satisfaction in Logistics Service Sector: An Intelligent Neutrosophic Model.” Neutrosophic Systems with Applications 4:43–52. doi: 10.61356/j.nswa.2023.20.
Nguyen, Phong Thanh, Andri Yandi, and M. Rizky Mahaputra. 2020. “Factors That Influence Employee Performance: Motivation, Leadership, Environment, Culture Organization, Work Achievement, Competence and Compensation (A Study Of Human Resource Management Literature Studies).” DIJDBM: Dinasti International Journal Business Management 1(4):645–62. doi: 10.31933/DIJDBM.
Noorizan, M. M., Nur Fareeha Afzan, A. Z. Norfazlina G., and A. S. Sharidatul Akma. 2016. “The Moderating Effects of Motivation on Work Environment and Training Transfer: A Preliminary Analysis.” Procedia Economics and Finance 37(16):158–63. doi: 10.1016/s2212-5671(16)30107-1.
Obrenovic, Bojan, Du Jianguo, Akmal Khudaykulov, and Muhammad Aamir Shafique Khan. 2020. “Work-Family Conflict Impact on Psychological Safety and Psychological Well-Being: A Job Performance Model.” Frontiers in Psychology 11(March):1–18. doi: 10.3389/fpsyg.2020.00475.
Ogiemwonyi, Osarodion, Mohammad Nurul Alam, and Hammad S. Alotaibi. 2023. “Pathways toward Environmental Performance: Link between Green Human Resource Management, Green Innovation, and Green Behavior at Work in Manufacturing Companies.” Journal of Cleaner Production 425(May):138949. doi: 10.1016/j.jclepro.2023.138949.
Ouakouak, Mohammed Laid, Michel Georges Zaitouni, and Bindu Arya. 2020. “Ethical Leadership, Emotional Leadership, and Quitting Intentions in Public Organizations: Does Employee Motivation Play a Role?” Leadership and Organization Development Journal 41(2):257–79. doi: 10.1108/LODJ-05-2019-0206.
Oudeyer, Pierre Yves, and Frederic Kaplan. 2015. “What Is Intrinsic Motivation? A Typology of Computational Approaches.” Frontiers in Neurorobotics 3(NOV):1–14. doi: 10.3389/neuro.12.006.2007.
Paais, Maartje, and Jozef R. Pattiruhu. 2020. “Effect of Motivation, Leadership, and Organizational Culture on Satisfaction and Employee Performance.” Journal of Asian Finance, Economics and Business 7(8):577–88. doi: 10.13106/JAFEB.2020.VOL7.NO8.577.
Pancasila, Irwan, Siswoyo Haryono, and Beni Agus Sulistyo. 2020. “Effects of Work Motivation and Leadership toward Work Satisfaction and Employee Performance: Evidence from Indonesia.” Journal of Asian Finance, Economics and Business 7(6):387–97. doi: 10.13106/jafeb.2020.vol7.no6.387.
Pawirosumarto, Suharno, Purwanto Katijan Sarjana, and Rachmad Gunawan. 2017. “The Effect of Work Environment, Leadership Style, and Organizational Culture towards Job Satisfaction and Its Implication towards Employee Performance in Parador Hotels and Resorts, Indonesia.” International Journal of Law and Management 59(6):1337–58. doi: 10.1108/IJLMA-10-2016-0085.
Raja, Usman, Inam Ul Haq, Dirk De Clercq, and Muhammad Umer Azeem. 2020. “When Ethics Create Misfit: Combined Effects of Despotic Leadership and Islamic Work Ethic on Job Performance, Job Satisfaction, and Psychological Well-Being.” International Journal of Psychology 55(3):332–41. doi: 10.1002/ijop.12606.
Rasool, Samma Faiz, Mansi Wang, Minze Tang, Amir Saeed, and Javed Iqbal. 2021. “How Toxic Workplace Environment Effects the Employee Engagement: The Mediating Role of Organizational Support and Employee Wellbeing.” International Journal of Environmental Research and Public Health 18(5):1–17. doi: 10.3390/ijerph18052294.
Reizer, Abira, Yael Brender-Ilan, and Zachary Sheaffer. 2019. “Employee Motivation, Emotions, and Performance: A Longitudinal Diary Study.” Journal of Managerial Psychology 34(6):415–28. doi: 10.1108/JMP-07-2018-0299.
Review, Entrepreneurial. 2019. “Work Environment , Job Satisfaction and Employee Performance in Health Services.” 19(1):29–42.
Richards, Ali. 2020. “A Critique of Transactional Leadership in Healthcare.” Nursing Standard 35(12):46–50.
Roberson, Quinetta, and Jamie L. Perry. 2022. “Inclusive Leadership in Thought and Action: A Thematic Analysis.” Group and Organization Management 47(4):755–78. doi: 10.1177/10596011211013161.
Selvarajan, T. T., Barjinder Singh, and Stephanie Solansky. 2018. “Performance Appraisal Fairness, Leader Member Exchange and Motivation to Improve Performance: A Study of US and Mexican Employees.” Journal of Business Research 85(April 2016):142–54. doi: 10.1016/j.jbusres.2017.11.043.
Setiawan, Roy, Luigi Pio Leonardo Cavaliere, Enaidy Reynosa Navarro, Worakamol Wisetsri, Puttithorn Jirayus, Sapna Chauhan, Almighty C. Tabuena, and Regin Rajan. 2021. “The Impact of Leadership Styles on Employees Productivity in Organizations: A Comparative Study Among Leadership Styles.” SSRN Electronic Journal. doi: 10.2139/ssrn.3875252.
Stephen P. Robbins, Timothy A. Judge. 2017. Organizational Behavior. Vol. 27. Edition 15. edited by Sally Yagan. Harlow Essex CM20 2JE England and: Pearson Education Limited.
Sugiarti, Endang. 2021. “The Influence of Training, Work Environment and Career Development on Work Motivation That Has an Impact on Employee Performance at PT. Suryamas Elsindo Primatama In West Jakarta.” International Journal of Artificial Intelligence Research 6(1). doi: 10.29099/ijair.v6i1.304.
Sulamuthu, Geeta Ann, and Halimah Mohd Yusof. 2018. “Leadership Style and Employee Engagement.” Proceedings of the International Conference on Industrial Engineering and Operations Management 2018-March:3323–30. doi: 10.15373/22778179/apr2014/90.
Sutarto, Auditya Purwandini, Shanti Wardaningsih, and Wika Harisa Putri. 2021. “Work from Home: Indonesian Employees’ Mental Well-Being and Productivity during the COVID-19 Pandemic.” International Journal of Workplace Health Management 14(4):386–408. doi: 10.1108/IJWHM-08-2020-0152.
Thapa, Ashish, and Daleep Parimoo. 2022. “Transactional Leadership Style and Organizational Performance: The Moderating Role of Emotional Intelligence.” Parikalpana: KIIT Journal of Management 18(1):53. doi: 10.23862/kiit-parikalpana/2022/v18/i1/212345.
Thomson, Norman B., James V. Rawson, Catherine P. Slade, and Martin Bledsoe. 2016. “Transformation and Transformational Leadership: A Review of the Current and Relevant Literature for Academic Radiologists.” Academic Radiology 23(5):592–99. doi: 10.1016/j.acra.2016.01.010.
Toriqul, Mohammad, Islam Jony, Jahangir Alam, and Mohammad Rafiqul Amin. 2019. “The Impact of Autocratic, Democratic and Laissez-Faire Leadership Styles on the Success of the Organization: A Study on the Different Popular Restaurants of Mymensingh, Bangladesh.” Canadian Journal of Business and Information Studies 1(6):28–38. doi: 10.34104/cjbis.019.028038.
Udovita, Viduni. 2020. “Conceptual Review on Impact of Leadership Style on Employee Performance.” International Journal of Business and Management Invention (IJBMI) ISSN 9(9):16–23. doi: 10.35629/8028-0909011623.
Wahyuni, Ni Putu Diah, Dian Alfia Purwandari, and Tantri Yanuar Rahmat Syah. 2019. “Transactional Leadership, Motivation and Employee Performance.” Journal of Multidisciplinary Academic 3(5):156–61.
Wiadnyana, I. Wayan Wahyu, I. W. K. Teja Sukmana, and Putu Chris. 2019. “Bali , 7 October 2019 The Effect Of Compensation , Motivation , Work Discipline And Work Environment On Housekeeping Staff Performance At Lv 8 Resort Hotel Bali , 7 October 2019.” (October):205–9.
Yahaya, Rusliza, and Fawzy Ebrahim. 2016. “Leadership Styles and Organizational Commitment: Literature Review.” Journal of Management Development 35(2):190–216. doi: 10.1108/JMD-01-2015-0004.
Yamin, Sofyan. 2022. SmartPLS 3, SmartPLS4, Amos & Stata.
Yusran, Abdul Hadi Sirat, Benny Agus, Lisda Ariani Simabur. 2021. “The Impact of Ability, Work Motivatedness, Organizational Commitment and Work Environment on Employee Performance.” Jurnal Manajemen Bisnis 8(2):360–72. doi: 10.46799/jss.v2i4.174.
Yusuf Iis, Em, Wahyuddin Wahyuddin, Armanu Thoyib, Rico Nur Ilham, and Irada Sinta. 2022. “The Effect of Career Development and Work Environment on Employee Performance With Work Motivation As Intervening Variable At the Office of Agriculture and Livestock in Aceh.” International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS) 2(2):227–36. doi: 10.54443/ijebas.v2i2.191.
Zacharias, Tehubijuluw, Mohamad Arsad Rahawarin, and Yusriadi Yusriadi. 2021. “Cultural Reconstruction and Organization Environment for Employee Performance.” Journal of Ethnic and Cultural Studies 8(2):296–315. doi: 10.29333/ejecs/801.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Niknik Ahmad Munawar, Fifit Hadiaty
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Journal of Accounting and Finance Management (JAFM) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Journal of Accounting and Finance Management (JAFM).
