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Title : The Influence of Leadership Style, Work Environment on Job Satisfaction and Employee Performance at PT. Khrisna Multi Lintas Cemerlang





Abstract

This study aims to examine and analyze the relationship between leadership style, work environment, job satisfaction and employee performance. This research was conducted at PT. Khrisna Multi Lintas Cemerlang with the research population were all employees who work in the company. All data obtained from questionnaires were suitable for use, then were analyzed by using structural equation model based on variant analysis which is known as Partial Least Square (PLS).
The result of this research shows that the leadership style has positive and significant effect on employee performance, the work environment has positive and significant effect on employee performance, the leadership style has positive and significant effect on job satisfaction, the work environment has positive and significant effect on job satisfaction and job satisfaction has positive and significant on employee performance.
The implication of this research was that the leadership needs to give freedom to subordinate to express their opinions, the workplace air temperature was well regulated, the work that was charged according to the ability and expertise, always guided by the company standard in carrying out each task and the employee has high knowledge in solving problem

I Introduction:

  • In everyday life, humans are never separated from organizational life, because in nature, human is a social creature that tends to always live in society.

  • Human resources are the only important organizational assets that can drive other resources. Human resources can affect the efficiency and effectiveness of the organization.

  • Every company will always strive to improve the performance of its employees in the hope of that what the company's goals will be achieved.

  • Various means will be pursued by the company in improving the performance of its employees, for example, by paying attention to leadership style of boss seen from aspects; how to communicate the leadership with subordinate, how to give motivation the leadership to subordinate, how the leadership create a good and fun ambience of working, and how the leadership take a decision. Then, the work environment factor plays an important role in improving employees performance in terms of relationships with co-workers, the ambience of working environment and good treatment among colleagues and job satisfaction factors also play an important role in improving employees performance by paying attention to aspects of satisfaction of the work, satisfaction about financial, satisfaction of promotion and job satisfaction will be a clear career path.

  • This research was conducted at PT. Khrisna Multi Lintas Cemerlang, where PT. Khrisna Multi Lintas Cemerlang is engaged in import-export warehousing located in the cargo area of Ngurah Rai Airport. Human resources problems that occur such as high level of absenteeism often occur even though the boss has given a lot of reprimands, sanctions, and even a unilateral dismissal by the company with no exception for the employees who previously had a reward for a good performance. In addition to high levels of absenteeism, employees also commit violations such as who is coming late.

According to Anwar et al. ( 2011 ), employees are valuable assets, the goals of the organization can be achieved with the participation of employees, employee performance will affects the company's efforts to dominate the market.

In addition, there is also a research gap of the previous researchers rbetween the relationship of leadership style variables, work environment, job satisfaction and employee performance as follows:

The positive influence according to Reza ( 2010 ), Moulana ( 2017 ), Soegihartono ( 2012 ), Husein and Hady ( 2012 ). Chandra and Priyono ( 2016 ). However, there are several contradictory findings, according to Mujahidin ( 2011 ), Lasya ( 2013 ), Dhermawan, et al ( 2012 ), Laan, et al ( 2016 ).

This study was conducted based on two reasons, there were; ( 1 ) the existence of a research gap that has been disclosed in the previous paragraph. ( 2 ) the existence of the research problem found in the field. Thus, this research took the title "The Influence of Leadership Style, Work Environment on Job Satisfaction and Employee Performance at PT. Khrisna Multi Lintas Cemerlang ".

2. Review of Literatures:

Performance is the result or success rate of a person as a whole over a certain period of time in carrying out the tasks compared to various possibilities, such as; predetermined standards of work, targets or predetermined criteria ( Rivai and Basri, 2005 ). According to Maharjan ( 2012 ), performance is a result that is achieved because of be motivated with job and satisfied with the job they do.

As for some performance indicators according to Bernardin in Robbins ( 2008 ), among others, quality, quantity, end result, work effectiveness, independence, and developing desire.

Leadership Style:

Leadership is a process of giving clues and influences to group members or organizations in performing tasks "( Hamalik, 2003 ).

Umar ( 2001 ) stated that an effective leadership style depends on a firm managerial foundation. The five basics or indicators that a leader must be concerned about are ways of communication, motivation, leadership skills, positive decision making and power.

2.4 Working Environment:

Understanding the working environment according to Armstrong (Bagus Kisworo, 2012: 75), the work environment consist of the system of work, the design of jobs, working conditions, and the ways in which people are treated at work by their managers and co-workers.

As for some work environment indicators referring to the theory put forward by Sedarmayanti (2004: 46) is a decoration in the workplace, workplace temperature, workplace music and workplace security.

In accordance with the review of literatures and empirical, it can be developed the hypothesis in this study with the explanation as follows:

  1. The Effect of Leadership Style on Employee Performance1) The Effect of Leadership Style on Employee Performance

  2. The Effect of Work Environment on Employee Performance2) The Effect of Work Environment on Employee Performance

Shadare Oluseyi. A ( Department of Industrial Relations and Personnel Management ) and Hammed, T. Ayo ( Department of Guidance and Conselling ) studied the Influence of Work Motivation, Leadership Effectiveness and Time Management on Employee Performance in Some Industries in Ibadan, Oyo State, Nigeria stated that positive and significant correlation between the independent variables on employee performance, but the greatest effect on employee performance is leadership. Their research appears in the European Journal of Economics, Finance and Administrative Sciences, ISSN 1450-2275 Issue 16 ( 2009 ).

Based on these findings, the hypothesis of this research was:

H1: the leadership style positively affects the employee performance .

The study by Sangki, et al ( 2014 ) which examined the Work Environment, Work Culture and Spirit of Working Performance of Outsourcing at Grapari Telkomsel Manado with 45 respondents.

This study was in line with the research by Taiwo ( 2010 ) in The Influence of Work Environment on Workers Productivity: A Case of Selected Oil and Gas Industry in Lagos, Nigeria with randomly selected respondents from four selected oil and gas industries in the metropolitan city of Lagos, showing that employee performance problems are in the work environment.

Based on these findings, the hypothesis of this research was:

H2: The work environment positively affects the employee performance

3) The Effect of Leadership Style on Job Satisfaction

Nafisah ( 2005 ), in The Analysis of The Influence of Leadership Style on Job Satisfaction, Organizational Commitment and Employee Performance of this research shows that five leadership factors; participative style, achievement orientation style, directive style, supportive style and caregiver style positively and significantly job satisfaction, organizational commitment and employee performance. Based on these findings, the hypothesis of this research was:

H3: The style of leadership has a positive effect on job satisfaction

4) The Effect of Work Environment on Job Satisfaction

The research from Aruan ( 2015 ) in The Effect of Work Environment on Job Satisfaction of Field Employees of Grasberg Department Power Distribution PT. Freeport Indonesia with sample of 57 respondents, where the sampling technique used was a saturated sample. The data analysis technique used was descriptive analysis and multiple regression analysis. The result of partial hypothesis test shows that physical work environment and non physical work environment have the most positive and significant influence to job satisfaction.

The research from Agbozo ( 2017 ) entitled The Effects of Work Environment on Job Satisfaction: Evidence from the Banking Sector in Ghana which shows that most employees in the bank are satisfied with the work environment, especially the physical ambience.

Based on these findings, the hypothesis of this research was:

H4: The work environment has a positive effect on job satisfaction .

5) The Influence of Job Satisfaction on Employee Performance

The research which was conducted by Atmojo ( 2012 ) in The Influence of Transformational Leadership on Job Satisfaction, Organizational Commitment, and Employee Performance. The result was that job satisfaction has a positive effect on performance. This research was in line with Afshar and Doosti ( 2016 ) research on Investigating the Impact of Job Satisfaction/Dissatisfaction on Iranian English Teachers' Job Performance. The result was that job satisfaction has a positive effect on performance. The research which was conducted by Chandra and Priyono ( 2016 ) on The Influence of Leadership Styles, Work Environment and Job Satisfaction of Employee Performance-Studies in the School of SMPN 10 Surabaya. The result was that job satisfaction has a positive effect on performance. The research which was conducted by Fadli, et al ( 2012 ) in The Influence of Job Satisfaction on the Performance of Lecturers University Singaperbangsa Karawang. The result was that satisfaction has a positive effect on lecturer performance.

Based on these findings, the hypothesis of this research was:

H5: Job satisfaction has a positive effect on employee performance .

3. Research Method:

  1. Research Design:

  2. Based on the hypothesis, there were four variables that were determined in this study; leadership style, work environment, job satisfaction and employee performance. These variables become the basis in the preparation of research instruments. After the sample was established, it was continued with the data collection, through observation method and questionnaires by using the instrument that had been prepared. The data obtained before the analysis was tested by validity and reliability test by using confirmatory factor analysis technique to confirm the accuracy (valid and reliable) of the instrument, then analyzed by using Partial Least Square (PLS) analysis technique. The results of further analysis are interpreted and continued by concluding and providing suggestions.

  3. Analiysis of situation and time:

This research was conducted at PT. Khrisna Multi Lintas Cemerlang located in International Cargo Area Ngurah Rai Airport. The background of the selection of research sites in this place was the discovery of problems in PT. Khrisna Multi Lintas Cemerlang associated with the influence of leadership style, work environment, job satisfaction and employee performance. The time of this study was conducted in January 2016 until June 2017.

  1. The Scope of Research:

  2. The scope of this study was limited to the areas of leadership style, work environment, job satisfaction and employee performance which performed at PT. Khrisna Multi Lintas Cemerlang. This limitation was done so that research was more focused and get more precise results.

  3. Population and Sample:

3.4.1 The Number of Population:

According to Sugiyono (2007: 90), population is a generalization region consisting of objects and subjects that has certain qualities and characteristics set by researchers to be studied and then drawn conclusions. Population in this research was all employees of PT. Khrisna Multi Lintas Cemerlang

3.4.2 The Determination of Sample:

The sample is part of the number and characteristics possessed by the population ( Sugiyono, 2012 ). The sample selection method used in this study was nonprobability sampling method with sampling technique saturated sampling (census), where all members of the population were sampled, those were 68 respondents.

The Identification of Variable:

This study was used four variables which were consist of leadership style (X1), work environtment (X2), job satisfaction (Y1), and employee performance (Y2)

Types and Data Source:

This research was a quantitative research with survey method. The data source in this research was primary and secondary data source. Both obtained directly from the field and the data obtained from the company.

Method of Collecting Data and Research Instruments:

The data was collected by plunging directly into the field at any given time. In addition to the researcher as an instrument, was used the supporting equipment in the collecting of data, such as recorder so that the data which was collected was enough to complete the research and achieved the research objectives. To obtain the necessary data in this research, it can be told that data collection techniques used was include questionnaires, interviews and documentation.

In measuring the research variables, respondents were asked to declare their perception of choosing one of the five answer alternatives: ( 5 ) strongly agree, ( 4 ) agree, ( 3 ) disagree, ( 2 ) disagree, ( 1 ) agree.

Testing of Research Instrument:

The testing of research instrument result shows all the questions of the four variables which was studied (leadership style, work environment, job satisfaction and employee performance) are valid (coefficient above 0.30), and indicate good level of reliability ( Alpha correlation coefficient ) Cronbach is above 0.60).

Data Analysis Technique:

3.9.1 Descriptive Analysis:

The use of descriptive analysis technique was intended to obtain a description of the characteristics of the research respondents from several aspects, such as: gender, age and education presented in the form of frequency, percentage, or average (mean).

3.9.2 Inferential Analysis:

Inferential analysis method used in this research was to test the measurement model and structural model simultaneously with the available data analysis of 60 questionnaires. In accordance with, adequate analytical techniques used were the structural equation modeling (SEM) based on variant or component based best known as Partial Least Square (PLS).

4. Finding and Discussion:

In this study, the four latent variables of leadership style (X1), work environment (X2), job satisfaction (Y1) and employee performance (Y2) was a measurement model with reflective indicators, so that in the evaluation of measurement model was done by checking as follows:

  1. Evaluation of Measurement Model ( Outer Model )

  2. Convergent Validity : In the result of this study, each indicator has an outer loading value greater than 0.50 and T-Statistic is above 1.96. so that the indicators used to measure each research variable can be said to be valid.

  3. Discriminant Validity: all variables have an AVE value above 0.5. In addition, the square root of average variance extracted ( QUOTE _x0001_ ) for each variable was mostly above the correlation coefficient values between variables. Thus, the results was obtained indicate the discriminant validity of the research model was good enough and acceptable for further analysis.

  4. Compositereliability: the value of the composite reliability of the four latent variables has been above 0.70, so it can be said that the reliable indicator block measures the variables.

  5. Evaluation of Structural Model ( Inner Model )

The Result Of Hyphotesis Testing

Figure 1 Figure shows the progress of the system

From the table above, it can be determined the results of hypothesis testing described in the following description:

  1. The Leadership Style (X1) proved that has positive and significant effect on Employee Performance (Y1). This result is shown by the positive path coefficient of 0.261 with T-statistic = 2.148 (T-statistic> 1.96)

  2. Work Environment (X2) has positive and significant effect on Employee Performance (Y2). This result is shown by path coefficient having positive value equal to 0.249 with T-statistic = 2.098 (T-statistic> 1.96).

  3. The Leadership Style (X1) has positive and significant effect on job satisfaction (Y1). This result is shown by a positive path coefficient of 0.350 with T-statistic = 3.235 (T-statistic> 1.96).

  4. Work Environment (X2) has a positive and significant effect on job satisfaction (Y1). This result is shown by the positive path coefficient of 0.331 with T-statistic = 2.934 (T-statistic> 1.96).

  5. Job Satisfaction (Y1) has positive and significant effect on employee performance (Y2). This result is shown by the positive path coefficient of 0.362 with T-statistic = 3.860 (T-statistic> 1.96).

  6. Result of Mediation Effect Testing

N o Relationship of Variables Direct Effects Indirect Effects Total Effects
1 0.261S 0.126S (0.350*0.362) 0.387
2 0.249S 0.119S (0.331*0.362) 0.368
3 0.350S - 0.350
4 0.331S - 0.331
5 0.362S - 0.362

126, greater than the effect of mediation of job satisfaction (Y1) on the indirect effect of work environment (X2) on the employee performance (Y2) that is with value of path coefficient of 0119

Thus, overall, the style of leadership style (X1) job satisfaction (Y1)  employee performance (Y2) with total effect gained is 0.387, compared to work environment (X2)  job satisfaction (Y1)  employee performance (Y2) with a total effect of 0.368. These findings provide clues that leadership styles and work environments can improve employee performance. However, the indirect effect of leadership style has an effect on employee performance through job satisfaction mediation capable of giving bigger impact to employee performance. This indicates the better leadership style which is applied to a company can increase job satisfaction and balanced with a comfortable working environment will certainly impact on the increase in employee performance.

Based on the results of hypotheses testing that have been described above, then compiled the path diagram as a serving in the following figure:

Figure 2 Figure shows the progress of the system

5. Conclusions and Suggestions:

  1. Conclusions:

  2. Leadership style has a positive and significant impact on the performance of employees of PT. Khrisna Multi Lintas Cemerlang, this means the better leadership style in a company, it will have a better impact on employee performance. Similarly, if the leadership style is not good, then the performance of employees will be bad

  3. Work environment has a positive and significant impact on employee performance of PT. Khrisna Multi Lintas Cemerlang, this means the more comfortable working environment in a company, it will impact on the better employee performance. Similarly, if the work environment is not comfortable, then the performance will be bad.

  4. Leadership style has a positive and significant impact on job satisfaction of PT. Khrisna Multi Lintas Cemerlang, this means the better leadership style in a company will impact the increasingly job satisfaction. Similarly, if the leadership style is not good, then job satisfaction will also decrease.

  5. Work environment has a positive and significant impact on job satisfaction of PT. Khrisna Multi Lintas Cemerlang, this means the more comfortable working environment in a company will have an impact on increasing job satisfaction. Similarly, if the work environment is not comfortable, then job satisfaction will also decrease.

  6. Job satisfaction has a positive and significant impact on employee performance of PT. Khrisna Multi Lintas Cemerlang, this means the higher job satisfaction will impact on the performance of the better employees. Similarly, if job satisfaction declines, then the performance of employees will also decline.

  7. Limitation of Research:

Limitations that can be conveyed from this research based on the time of research that is relatively short (cross-sectional). This limitation certainly has a low impact of generalization of research, given the problems faced in the process of maintaining the performance of employees is relatively complex. In addition to the development of more relevant indicators used in each variable, as well as many factors as a determinant level of employee performance in a company.

  1. Suggestions:

  2. The applied leadership style should be able to protect the employees. This can be done by maximizing the application of leadership styles that tend to promote motivation, decision making, positive power, communication and leadership skills

  3. Work environment is one important factor that needs to be considered if you want to establish a harmonious relationship among employees in order to create maximum employee performance as a whole. Some things must be considered in creating a comfortable working environment, among others, with the decoration in a comfortable workplace, workplace security, temperature or temperature and music at work.

  4. Job satisfaction will be realized if the management is able to maximize the role of supervisors, promotions, wages, jobs and colleagues. Where this will certainly be able to provide encouragement for employees in improving its performance.

  5. Good employee performance will be reflected on work effectiveness, developing desire, outcome, independence, quantity and quality of work. Companies that want to grow in the achievement of the goal is very important to pay attention to factors that can support employee performance. So that all the goals set as the company's work plan can be implemented in accordance with the planning that has been prepared.

References:

  1. Afshar, H. S. dan Doosti, M. 2016. Investigating the Impact of Job Satisfaction/ Dissatisfaction on Iranian English Teachers’ Job Performance. Iranian Journal of Language Teaching Research, Vol. 4, No. 1, pp. 97-115.

  2. Bagus Kisworo. ( 2012 ). Hubungan Antara Motivasi, Disiplin, dan Lingkungan Kerja dengan Kinerja Pendidik dan Tenaga Kependidikan Sanggar Kegiatan Belajar Eks Karasidenan Semarang Jawa Tengah. Tesis. UNY

  3. Chandra, Teddy dan Priyono. ( 2015 ). The Influence of Leadership Styles, Work Environment and Job Satisfaction of Employee Performance.

  4. Davis, Keith and John W. Newstrom, 2002, Perilaku dalam Organisasi, Cetakan Ketujuh, Jakarta, Erlangga.

  5. Dhermawan, Anak Agung Ngurah Bagus. I Gde Adnyana Sudibya dan I Wayan Mudiartha Utama. 2012. “Pengaruh Motivasi, Lingkungan Kerja, Kompetensi, dan Kompensasi Terhadap Kepuasan Kerja Dan Kinerja Pegawai Di Lingkungan Kantor Dinas Pekerjaan Umum Provinsi Bali”. Jurnal Manajemen, Strategi Bisnis dan Kewirausahaan. Vol. 6. No. 2. Agustus 2012. Hal. 173 – 184. Universitas Udayana. Bali.

  6. Hamalik, Oemar.( 2005 ). Pengembangan Sumber Daya Manusia Manajemen Pelatihan Ketenagakerjaan. Jakarta:PT Bumi Aksara

  7. Lasya, Puti Intan. ( 2013 ). Analisis Pengaruh Kompensasi, Kepemimpinan Atasan, Kesempatan Promosi, Dan Lingkungan Kerja Terhadap Kepuasan Kerja Karyawan Outsourcing PT. Indosat Tbk. Universitas Bakrie.

  8. Maharjan, Sarita. 2012. Association between Work Motivation and Job Satisfaction of College Teachers Administrative and Management Review Vol. 24, No 2, pp..45-55.

  9. Moulana, Ferry. ( 2017 ). Pengaruh Lingkungan Kerja Terhadap Kinerja Karyawan Melalui Variabel Mediator Motivasi Kerja (Studi pada Karyawan PT. Telkom Indonesia,Tbk Witel Jatim Selatan, Jalan A. Yani, Malang)

  10. Mujahidin. 2011. Pengaruh Gaya Kepemimpinan, Motivasi Dan Pelatihan Terhadap Kinerja Karyawan Dinas Pekerjaan Umum Kabupaten Sintang. Skripsi. Universitas Tanjungpura Pontianak.

  11. Nafisah, Durrotun. 2005. “Analisis Pengaruh Gaya Kepemimpinan Terhadap Kepuasan Kerja, Komitmen Organisasi dan Kinerja Karyawan”. Skripsi Managemen. Fakultas Ekonomi Universitas Diponegoro 2005.

  12. Prihatsanti, U & Dewi, K.S. ( 2010 ). Hubungan antara Iklim Organisasi dan Organizational Citizenship Behavior (OCB) pada Guru SD Negeri di Kecamatan Mojolaban Sukoharjo. Jurnal Psikologi Undip. Vol. 7, No. 1, 11- 17.

  13. Reza, Regina Aditya. 2010. Pengaruh Gaya Kepemimpinan, Motivasi dan Disiplin Kerja terhadap Kinerja Karyawan. Universitas Diponegoro

  14. Rivai, Veithzal dan Basri, 2005, Performance Appraisal : Sistem Yang Tepat Untuk Menilai Kinerja Karyawan Dan Meningkatkan Daya Saing Perusahaan. Rajagrafindo Persada, Jakarta

  15. Robbins, Stephen P, 2001, Organizational Behavior, 9th Ed. Upper Saddle River New Jersey, Prentice Hall International.

  16. Robbins, Judge. 2008. Perilaku Organisasi, Buku 1 dan 2. Jakarta : Salemba Empat.

  17. Sangki RY et all ( 2014 ). Lingkungan kerja, Budaya Kerja dan Semangat Kerja terhadap Kinerja Karyawan Outsourcing Pada Grapari Telkomsel Manado. Universitas SamRatulangi Manado

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  20. Taiwo, Akinyele Samuel. 2010. The influence of work environment on workers productivity: A case of selected oil and gas industry in Lagos, Nigeria.

References:

  1. The Relationship between Teachers’ Job Satisfaction and Loneliness at the Workplace TABANCALI Erkan. Eurasian Journal of Educational Research.2016-dec;:1-30. CrossRef Google Scholar
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Article Details

Issue: Vol 9 No 03 (2018)
Page No.: 20544-20552
Section: Management and Economics
DOI: https://doi.org/10.15520/ijcrr/2018/9/03/459


 How to Cite
Kusumadewi, N. P. R., Sudja, I. N., & Sujana, I. W. (2018). The Influence of Leadership Style, Work Environment on Job Satisfaction and Employee Performance at PT. Khrisna Multi Lintas Cemerlang. International Journal of Contemporary Research and Review, 9(03), 20544-20552. https://doi.org/https://doi.org/10.15520/ijcrr/2018/9/03/459

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