THE INFLUENCE
OF LEADERSHIP STYLE AND ORGANIZATIONAL CULTURE
ON EMPLOYEE
PERFORMANCE
Afrid Budi Cahyono1,
Nur Wening2�
Universitas Teknologi Yogyakarta, Jawa Tengah, Indonesia
[email protected]1 , [email protected]2
ABSTRACT
Human resources have an important role as implementers of company
policies and operations so that they become the most important asset for an
organization or company. To achieve the vision and mission of an organization
or company's goals, leadership style and organizational culture play an
important role in its success. This study aims to determine the effect of
leadership style and organizational culture on employee performance. This
literature study with secondary data is used as a research method. Data related
to the research topic was obtained from national journal publications from 2017
to 2023. The results of the literature review analysis show that leadership
style and organizational culture have a positive and significant effect on
employee performance. This research implies that organizations can focus more
on developing effective leadership styles, such as transformational or
democratic, which have been shown to have a positive impact on employee
performance. And building a supportive, inclusive, and motivating culture will
be key in improving employee performance.
Keywords: Leadership
Style, Organizational Culture, Performance.
Corresponding
Author: Afrid
Budi Cahyono
Email: [email protected]
INTRODUCTION
The development of science and
technology in the era of globalization has caused changes and technology in
this era of globalization has caused changes in organizations (Amir,
2022). In an increasingly tight
competitive situation, government agencies and private companies must adapt and
improve their capabilities to survive. Human resources (HR) are the most
valuable assets for an organization or company because they act as subjects
implementing policies and operational activities (Riniwati,
2016). Therefore, the performance of human resources is
an important factor in achieving the organization's vision, mission, and goals.
According to several
studies conducted by Bass et al., Locander et al., and Yammarino et al. (Mariam, 2009), leadership is important in determining employee
performance and the organization's ability to adapt to environmental changes.
Effective leadership must provide clear direction for all employees to achieve
their goals. At the same time, the organization could be more effective in
achieving the stated goals.
Several experts,
such as Bass and Avolio (1993:160-175) and Schein (2004:25), state that a
leader can shape the culture of an organization and, in turn, is shaped by the
culture that exists in the organization. According to (Govindarajan, 2019), organizational culture (Govindarajan, 2019)includes shared beliefs, espoused life values,
behavioral norms, and assumptions that are implicitly accepted and explicitly
manifested throughout the organization. These elements are the basis for
monitoring employee behavior and how they think, work together, and interact
with their environment. Organizational culture can be defined as a system of
values, beliefs, assumptions, or norms that are valid, agreed upon, and
followed by the members of an organization as a guide for behavior and solving
organizational problems.
In several
previous studies (as shown in the table below), the author has tried to
evaluate the influence of leadership style and organizational culture on
employee performance in government agencies and private companies (Pebrian et al., 2023). However, the results of these studies still have
differences. For example, a study conducted by Samsul (Junaidi & Susanti,
2019)shows that leadership style and organizational culture
significantly affect employee performance. However, research by (Rahayu Cantika, 2022) shows that leadership style only significantly affects
performance.
Table
1. Data extraction in the ASN scope
|
WRITER |
RESULTS |
|||||
|
Influence of leadership style on
performance (Partial) |
The
influence of organizational culture on performance (Partial) |
The influence of leadership
style and organizational culture on performance (Simultaneous) |
||||
|
Information |
||||||
|
(Junaidi &
Susanti, 2019) |
Significant |
- |
Significant |
- |
Significant |
- |
|
(Anandita et al., 2022) |
- |
Positive but not significant |
Positive and significant |
- |
Positive and significant |
- |
|
(Maryani et al., 2020) |
Significant |
- |
Significant |
- |
Positive and significant |
- |
|
(Syurya et al., 2019) |
Positive and significant |
|
Positive and significant |
|
Positive and significant |
- |
|
(Windaryadi, 2018) |
Significant |
- |
Significant |
- |
Positive and significant |
- |
|
(Thamrin, 2020) |
Positive and significant |
- |
Positive and significant |
- |
- |
- |
Table 2. Data extraction table in the BUMN/BUMD/PRIVATE sector
|
WRITER |
RESULTS |
|||||
|
Influence
of leadership style on performance (Partial) |
The influence of organizational culture on performance (Partial) |
The influence
of leadership style and organizational culture on performance (Simultaneous) |
||||
|
Information |
||||||
|
(Widianto & Supriyono, 2018) |
Significant |
- |
Significant |
- |
- |
- |
|
(Jufri & Marimin, 2022) |
Significant |
- |
Significant |
- |
Positive
and significant |
- |
|
(Prasada, 2020) |
Significant |
- |
Significant |
- |
Positive
and significant |
- |
|
Alfina, et
al (2019) |
Significant |
- |
Positive
and significant |
- |
Significant |
- |
|
(Kurniawan, 2021) |
Significant |
- |
Significant |
- |
Significant |
- |
|
(Zeindra & Lukito, 2020) |
Positive
and significant |
- |
Positive
and significant |
- |
Positive
and significant |
- |
|
(Mufarrahah, 2022) |
- |
Positive
but not significant |
Positive
and significant |
- |
Positive
and significant |
- |
|
(Mariani & Sepdiana, 2021) |
|
Not
significant |
Positive
and significant |
- |
- |
- |
|
(Prasada, 2020) |
Significant |
- |
Significant |
- |
Significant |
- |
|
(Hasyim & Nuridin, 2020) |
Positive
and significant |
- |
Positive
and significant |
- |
Positive
and significant |
- |
|
(Imron, 2018) |
Significant |
- |
Significant |
- |
Positive
and significant |
- |
|
(Gunawan & Baharudin, 2019) |
Significant |
- |
Significant |
- |
Positive
and significant |
- |
|
(Manunggal, 2020) |
Significant |
- |
Significant |
- |
Positive
and significant |
- |
|
(Rivai, 2020) |
Positive
and significant |
- |
Positive
and significant |
- |
Positive
and significant |
- |
The
literature review study table above shows some inconsistencies in the research
results. With this evidence gap, it is hoped that the author will find out how
significant the influence of leadership style and organizational culture is on
employee performance and what factors can influence employee performance. This
research aims to determine and analyze the influence of leadership style and
organizational culture on employee performance.
METHOD
Method
Research method using Systematic Literature Review. The data source was
taken from research publications on leadership style, organizational culture,
and employee performance. The publication results are taken from national
journals that already have ISSN.
The research method used in this
research is a Systematic Literature Review. The data sources used in this
research are the results of research publications related to leadership style,
organizational culture, and employee performance, which have been published in
journals that have ISSN in the 2020 - 2022 period.
Assessment criteria
In this
study, the article inclusion criteria used must meet the following
requirements:
a) Articles must be accessible online and
have been published in a journal.
b) Articles must be related to research
topics within a maximum period of the last four years, namely 2019 � 2022
Apart from that, there are exclusive
criteria used in this research; articles that meet the inclusion criteria but
are published by journals that do not have an ISSN will be excluded from this
research.
Research
Phase
This systematic review research
stage consists of several steps that must be followed according to (2015), namely planning, conducting, and reporting.
1.
Planning
At the Planning stage, researchers
begin by formulating questions that will be used to conduct a review based on PICOC.
PICOC is an abbreviation of the following terms: Population (P), Intervention
(I), Comparison (C), Outcomes (O), and Context (C).
a)
Population
(P) refers to the target group of a study or the results of an article
investigation. The population studied in this research were employees, both
from private companies and government agencies.
b)
Intervention
(I) covers detailed aspects of the investigation or issue of interest to the
researcher, such as leadership style, work culture, and employee performance.
c)
Comparison
(C) is the aspect of an investigation that compares the interventions carried
out from the research results. An example is how significantly leadership style
influences employee performance compared to organizational culture.
d)
Results (O)
include the effects and results of interventions that have been written and
published, such as the results of leadership style, organizational culture, and
their influence on employee performance.
e)
Context (C)
includes the environment and settings of the investigation in the work
environment of companies and agencies.
2.
Conducting
The conducting stage is the stage
of carrying out systematic review research by carrying out the following steps:
a)
Determine keywords to search for literature using the keywords leadership
style, organizational culture, and employee performance
b)
Select
literature that is relevant to the research topic with the help of research
inclusion and exclusion criteria.
c)
Assess the
quality of literature through quality assessment by referring to appropriate
question parameters.
d)
Extract data
by creating a grouping matrix of the articles' results.
e)
Synthesize
the selected literature narratively and quantitatively to obtain clear
conclusions.
3.
Reporting
The reporting stage in systematic
review research is where the results are compiled and written down in the form
of a report or article.
RESULTS AND
DISCUSSION
Table 1. Data extraction in the ASN scope
|
Researcher |
Title |
Journal |
Method |
Results |
|
(Junaidi & Susanti, 2019) |
The Influence of Leadership &
Organizational Culture on Employee Performance at the Nanggalopadang
Subdistrict Office. |
Journal of Management &
Business Development. Vol.2, No.3, September 2020 ISSN-P: 2355-0376 ISSN-E: 2656-8322 |
a.
Quantitative b.
Sample of 61 people. |
The
research results of the leadership style and organizational culture variables
jointly influence the performance of employees at the Nanggalo Padang
Subdistrict Office with a significant value. |
|
(Anandita et al., 2022) |
|
Vol.1,
No.4, October 2022 e-ISSN 2809-8099 | p-ISSN
2810-0484 |
a.
Quantitative b.
Sample 60 respondents |
The research results show that the Leadership Style variable partially
has a positive but insignificant influence on employee performance. In
contrast, the Organizational Culture variable positively and significantly
influences employee performance. Simultaneously, the Leadership Style and
Organizational Culture variables positively and significantly affect the
Performance of Jombang PUPR Service Employees. |
|
(Maryani et al., 2020) |
The Influence of Principal
Leadership Style and School Organizational Culture on Teacher Performance
(State Kindergarten in the Ogan Ilir Regency area) |
Journal of Innovation in
Teaching and Instructional Media Vol. 1 No 1, September 2020 Page:18-25 |
a.
Quantitative b.
A sample of 47 people |
The results of the
research show that 1) there is an influence that the principal's leadership
style has on teacher performance, 2) there is an influence of school
organizational culture on teacher performance, 3) there is a significant
influence between the principal's leadership style and school organizational
culture on teacher performance. |
|
(Syurya et al., 2019) |
The
Influence of Leadership, Organizational Culture & Work Motivation on the
Performance of Pare-Pare City DPRD Secretariat Employees. |
Journal of Management, Volume 2
Issue 3 (2019) Pages 175 � 188, ISSN: 2614-851X (Online) |
a.
Quantitative b.
A sample of 51 people |
The
research results show that leadership, organizational culture, and work
motivation positively and significantly affect employee performance at the
Parepare City DPRD Secretariat. Of the three independent variables used in
this research, the leadership variable has a dominant influence in improving
employee performance. |
|
(Windaryadi, 2018) |
The Influence of Leadership and
Organizational Culture on Employee Performance (Tugumulyo District Office,
Musi Rawas). |
Sriwijaya Journal of Management
and Business Vol.16 (3), 2018, ISSN: 1412-4521 |
a.
Quantitative b.
Sample of 26 people |
The
research results show that (1) Leadership partially influences employee
performance, and (2) organizational culture influences employee performance.
(3) Leadership and organizational culture influence employee performance at
the Tugumulyo District office, Musi Rawas. |
|
(Thamrin, 2020) |
The Influence of Visionary
Leadership & Organizational Culture on Employee Performance in Cimahi
City Government. |
Journal of Economics &
Sharia Economics, Vol 3 No 1, January 2020, E-ISSN: 2599-3410. P-ISSN:
2614-3259 |
a.
Quantitative b.
A sample of 93 people |
The results
of this research show that visionary leadership has a positive and
significant influence on the performance of Cimahi City Government employees.
In addition, it was found that organizational culture had a positive and
significant influence on the performance of Cimahi City Government employees. |
Table 2. Data extraction in the BUMD/ BUMN/
PRIVATE Scope
|
Researcher |
Title |
Journal |
Method |
Results |
|
(Widianto & Supriyono, 2018) |
The Influence of Leadership and
Organizational Culture on the Performance of Sharia Bank Employees with Job
Satisfaction as an Intervening Variable |
Journal of Economics and Banking
Vol 3. No. 2 (2018). ISSN 2579 - 5597 |
a.
Quantitative b.
Sample of 90 people |
This
research shows that leadership and organizational culture have a positive and
significant effect on employee performance. |
|
(Jufri & Marimin, 2022) |
The Influence of Leadership
Style & Organizational Culture on Employee Performance. (At the central
Baitul Maal Hidayatullah Amil Zakat Institution). |
Journal of Civilization Administration, Vol. 2, No. 2, May 2022 p-ISSN: 2775-1880 e-ISSN: 2775-1872 |
a.
Quantitative b.
Sample of 48 people. |
The research results simultaneously show a positive and significant
influence of leadership style and organizational culture variables on
employee performance. |
|
(Prasada, 2020) |
The Influence of Leadership
Style & Organizational Culture on Employee Performance at PT. Independent
Construction in South Tangerang. |
Journal of Education, Humanities
& Social Sciences (JEHSS). Vol 3, No. 2, December 2020. ISSN 2622-3740 |
a.
Quantitative b.
Sample of 52 people. |
Leadership Style and Organizational Culture simultaneously have a
significant effect on employee performance. |
|
|
Journal of
Economics and Management (JECMA), Vol. 1, No. 1, February 2019. ISSN: 2746-0568 |
a.
Quantitative b.
Sample of 50 people |
So, this research can conclude that the variables of leadership style and
organizational culture simultaneously or together significantly affect the
dependent variable, namely employee performance. |
|
|
(Kurniawan, 2021) |
The Influence of Leadership
Style & Organizational Culture on PT Employee Performance. Nusa
Construction Engineering. |
Pundi
Journal. Vol. 04,
No. 03, November 2020. ISSN: 2556 - 2278 |
a.
Quantitative b.
A sample of 54 respondents |
From the results of 3 studies and five discussions, it was concluded
that 1 Leadership Style and Organizational Culture 9 had a positive and seven significant effect on the
performance of 0 employees at PT. Nusa 1
Construction 2 Engineering Tbk. |
|
(Zeindra & Lukito, 2020) |
The Influence of
Transformational Leadership Style & Organizational Culture on PT Semen
Padang Employee Performance with Job Satisfaction as Mediation. |
Scientific Journal of Management
Economics Students. Vol. 5, no.
2, May 2020. E-ISSN:
2598-635X, P-ISSN: 2614-7696 |
a.
Quantitative b.
Sample of 129 employees. |
The research analysis results show a positive and significant influence
between transformational leadership and organizational culture on employee satisfaction,
and transformational leadership and organizational culture have a positive
and significant influence on employee performance. |
|
(Mufarrahah, 2022) |
Influence of Leadership Style & Organizational
Culture On Employee Performance at PT. Wahana Safety Indonesia. |
Research
Journal of Accounting and Business Management. Vol.6, No.2, (2022) P-ISSN:
2580 � 3115; E-ISSN: 2580 - 3131 |
a.
Quantitative b.
Sample of 150 employees. |
The research results
show that partial leadership style does not significantly affect performance.
However, leadership style (X1) and organizational culture (X2) simultaneously
have a positive and significant effect on employee performance (Y). This
shows the relationship between leadership style (X1) and organizational
culture (X2) simultaneously influencing the performance of employees from PT
Wahana Safety Indonesia. |
|
(Mariani & Sepdiana, 2021) |
The Influence of Leadership
Style & Organizational Culture on PT Employee Performance. As no Horie
Indonesia |
Journal of Entrepreneurship
Strategic Management, Vol. 1 (No.1), 2021, p: 1 � 10. ISSN: 2723-701X |
a.
Quantitative b.
A sample of 77 people |
The
research results show that the leadership style variable does not
significantly affect employee performance. However, organizational culture
has a significant positive effect. |
|
(Prasada, 2020) |
The Influence of Leadership
Style & Organizational Culture on Employee Performance at PT. Mandiri
Construction in South Tangerang |
Journal of Education, Humanities
and Social Sciences (JEHSS), Vol 3, No. 2, (2020), 629-636, ISSN 2622-3740 (Online) |
a.
Quantitative b.
Sample of 52 people |
The results of this research
indicate that leadership style and organizational culture partially and
simultaneously have a significant effect on employee performance. |
|
(Hasyim & Nuridin, 2020) |
The Influence of Leadership
& Organizational Culture on PT Employee Performance. KAO Indonesia |
Krisnadwipayana Business
Management Journal, Vol.8. No. 2, May-August 2020, p-ISSN: 2338-4794 e-ISSN:
2579-7476 |
a.
Quantitative b.
Sample of 75 people |
Based on the research results,
the following can be concluded: 1). Simultaneously, there is a positive
influence of leadership and organizational culture variables on employee
performance 2) There is a positive and partially significant influence from
the leadership variable on employee performance 3). There is a positive and
partially significant influence of organizational culture variables on
employee performance |
|
(Imron, 2018) |
The Influence of Leadership
& Organizational Culture on Employee Performance (Study at Bank Central
Asia KCP. Singosari Malang) |
Journal of Management Science, Volume 4, Number 2, July 2018.
ISSN: 2460-1012 |
a.
Quantitative b.
Sample of 40 people |
The research results show that
leadership and organizational culture influence employee performance
simultaneously; Leadership has a dominant influence on employee performance.
A limitation of this research is that the variables used as predictors of employee
performance only consist of two independent variables: leadership and
organizational culture. |
|
(Gunawan & Baharudin, 2019) |
The Influence of Leadership
Style & Organizational Culture on PT Employee Performance. KMPlus |
Journal of Administration and Management
Vol 9 no 2, 2019, e-ISSN:
2623-1719 p-ISSN:
1693-6876. |
a.
Quantitative b.
A sample of 85 people |
The research results
show that leadership style and organizational culture positively and
significantly influence employee performance and other factors. |
|
(Manunggal, 2020) |
The Influence of Leadership
& Organizational Culture on the Performance of BPJS Employment Yogyakarta
Employees |
Upajiwa
Dewantara, Vol. 4 No. June 1, 2020. |
a.
Quantitative b.
Sample of 50 people |
The research results show that
leadership and organizational culture have a significant effect on employee
performance, and together, they have a significant effect on BPJS employee
performance. |
|
(Rivai, 2020) |
The Influence of
Transformational Leadership & Organizational Culture on Employee
Performance (PT. Federal International Finance � Medan) |
Maneggio: Master of Management
Scientific Journal, Volume 3, Number 2, September 2020, e-ISSN 2623-2634 |
a.
Quantitative b.
Sample of 60 people |
The results of this research
indicate that transformational leadership and organizational culture have a
positive and significant effect on the performance of PT Federal
International Finance - Medan employees. Transformational leadership and
organizational culture simultaneously have a positive and significant effect
on the performance of PT employees. Federal International Finance - Medan |
Based on the
results of the literature analysis, 20 articles were selected, divided into six
articles taken from the civil servant environment and 14 articles from the
private/BUMD/BUMN environment. From the
results of each article above, it can be classified as follows:
Categories in the Civil Service
Environment
a. � Most of the influence of leadership style and
organizational culture on the performance of employees in the civil service
environment is positive and significant. However, the difference is obtained
from the article studied (Anandita et al., 2022), which concludes that leadership style and organizational culture
do not significantly affect teacher performance. This implies that increasing
or decreasing the leadership level does not have much influence on teacher
performance.
b. Apart from leadership style and organizational
culture, other factors can influence employee performance, including
competence, job satisfaction, work motivation, and organizational
communication.
Categories in BUMN/BUMD/Private
Environment
a. � Most of the influence of leadership style and
organizational culture on the performance of employees in BUMN/BUMD/private
environments has a positive and significant influence on the performance of
employees/employees. However, different from the research results, (Mariani Sepdiana, 2021) concluded that leadership style only
significantly affects employee performance. The same thing was also obtained
from the results of the research conclusions (Mufarrohah, 2022)
b. According to Kurniawan (2020), four leadership
styles significantly influence employee performance: supportive, directive,
participative, and achievement-oriented. Positive leadership can influence
subordinates' perceptions and motivate them by providing clarity of tasks and
goals to be achieved and providing satisfaction and effective work
implementation. Apart from that, Kurniawan (2020) also found that positive
organizational culture variables related to employee behavior rules, work
standards, and monitoring of work results also significantly affect employee
performance.
This is in
line with one of the research results concluded by (Junaidi & Susanti,
2019) and (Jufri Marimin, 2022), which confirms that leadership style and
organizational culture simultaneously positively and significantly influence
employee performance.
Different
findings were revealed by (Mariam, 2009), who concluded that intervening variables
influence leadership style and organizational culture on employee performance.
A good leadership style and organizational culture will first increase employee
job satisfaction, which will increase employee performance.
Mukmin
explained that the right leadership style would create a conducive work environment
for employees, good working relationships between employees and superiors, and
eliminate social gaps between lines within the company, creating a comfortable
working atmosphere for all parties, including employees. Employees will feel
satisfied if they work in good conditions or situations by the employee's
expectations. Once employee job satisfaction is met properly, it will affect
employee performance.
Organizational
culture is also known to positively and significantly affect employee
performance. The better the organizational
culture created, the more satisfied employees will be, resulting in higher
performance.
This is in line with one of the
research results concluded by (Zeindra Lukito, 2020). However, Zeindra revealed something more complex, where in his
research, Zeindra showed a positive relationship between transformational
leadership and employee job satisfaction. A leadership style that not only
leads subordinates but can also motivate subordinates will further increase the
job satisfaction of company employees. Freedom for employees to complete work
in their style and to propose ideas shows a positive organizational culture (Zeindra & Lukito, 2020).
Apart from that, Management must
pay attention to factors influencing employee job satisfaction, such as need
fulfillment, value attainment, and equity (fairness). Employees who are
satisfied with transformational leadership have a greater influence on employee
performance, where employee performance can be improved through
transformational leadership without first increasing job satisfaction.
Some research also reveals that
apart from job satisfaction, other factors influence the results of the
influence of Leadership Style and Organizational Culture on employee
performance. Prasada (2020) stated this. Most leadership styles and organizational cultures
have a significant influence on employee performance. However, other factors
contribute to influencing employee performance. However, unfortunately, (Prasada, 2020) does not reveal other factors that influence this performance in
detail.
Several studies show that
leadership style can influence employee performance. However, research results
are more significant (Alfina et al., 2019), which show a positive influence of leadership style on employee
performance. Although insignificant. Therefore, leadership style is not the
only factor determining increased employee performance. Companies can improve
employee performance by providing appreciation in the form of appropriate
rewards to satisfy employees and by improving a positive organizational culture
that can significantly influence employee performance regardless of the
leadership style used. Apart from that, organizational culture also positively
influences employee performance. A well-developed organizational culture can
influence employee behavior and improve employee performance. The partial
correlation test (Alfina et al., 2019)proves that organizational culture positively and significantly
affects employee performance. The better the organizational culture provided,
the greater its influence on improving employee performance.
This is in line with the results
of research (Anandita et al., 2022)which produced the following conclusions: a. Leadership style is
influential but has little impact on employee performance due to the presence
of indicators of authoritarian leadership, employees do not like leaders who do
not want to accept suggestions from their subordinates. b. Organizational
culture is proven to have a positive impact on employee performance because a
positive organizational culture encourages employees to carry out tasks by
specified work standards, which impacts a fair division of tasks, motivating
employees to achieve optimal work results.
CONCLUSION
Based on the results of
the discussion in literature study cases, research on leadership style and
organizational culture variables largely influence employee performance.
However, there are still phenomena related to leadership style that only
sometimes significantly affect employee performance. This is because many
factors influence leadership style and work culture on employee performance.
Likewise, organizational culture also partially influences employee
performance, even though the percentage is very small. With the results of the
research above, there may be factors that influence employee performance.
Therefore, future research can find other factors that can influence employee
performance.
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