CC BY
63
DOI https://doi.org/10.18551/rjoas.2017-04.10
THE INFLUENCE OF LEADERSHIP ORIENTATION AND EMPLOYEE SATISFACTION TOWARDS EMPLOYEE PERFORMANCE: STUDY CONDUCTED AT PAPUA'S PLANNING AND DEVELOPMENT AGENCY
Yuliana Bintang*
Doctoral Degree Program in Management, University of Brawijaya, Indonesia
Troena Eka Afnan, Sudiro Achmad, Rahayu Mintarti
Faculty of Economics and Business, University of Brawijaya, Indonesia
*E-mail: bintangyuliana81@gmail.com
ABSTRACT
This study aims to empirically verify and confirm the influence of leadership orientation and employee satisfaction towards employee performance. This was explanatory research intending to explain causal relationship between variable by using quantitative approach. Population and sample of this study is civil servants who work at Papua's Planning and Development Agency (BAPPEDA). They are all echelon III officials, echelon IV officials, and staff amounting to 188 people. Analysis method used to answer the hypothesis of this study is Partial Least Square (PLS). The result of the study shows that leadership orientation has significant influence over the employee performance. This means that the better the leadership orientation, the better the performance of employee. Employee satisfaction has significant influence over the employee performance, it means that the higher the rate of employee satisfaction, the better the performance of him.
KEY WORDS
Leadership orientation, job satisfaction, employee, performance.
Good and professional organizational management is a key to realize the accomplishment of good and accountable governance. Each of individual joined in an organization has to be actively participated to reach vision, mission and organizational goal to improve its performance through an action or decision-making process which is in order to support the organizational goal. Papua Provincial Government makes an effort to respond the demands and needs of good governance. It is as stipulated in law No.21/2001 on Special Autonomy for Papua Province that was then described in Key Performance Indicator (IKU) in 2014-2018 especially in the second mission, that is, "Realizing good, clean, and influential governance and Special Autonomy Strengthening" as well as deeper strengthening on the first strategic target, that is, the improvement of professionalism and accountability of apparatus' performance and discipline. Sedarmayanti (2014) stated that most of civil servants' professionalism quality condition is not satisfying yet. This causes by wrong or deviant practice of personnel management from the principles of quality control of human resources management. BAPPEDA of Papua province is one of local government agencies (SKPD) under the wing of Papua provincial government and has main duty to arrange and perform regional policy on regional development planning. Human resources, quality apparatus as a main element, comprising of a leader as a superior and employee as a subordinate with their own function is a need and strategic stage of every government to achieve good governance. Day and Lord (in Robbins, 2006) stated that the quality of leadership greatly influences the success of an organization as the successful leader will be able to anticipate change to motivate his/her subordinates to reach high productivity level, correct a poor performance, and encourage organization towards its target. An effective leader has to bring about a situation and condition of organization which s/he leads as a main focus. Griffin (2004) stated that effective leader's behavior and action will be different compared to those who are not effective enough. Therefore, behavior and action of a leader
which is seen from his/her leadership orientation can be used as focus of attention to see someone else's leadership since the leader has to be able to determine and manage appropriate leadership orientation.
Every employee assigned has to be nurtured and managed well to make him satisfied to perform his/her job duties and contribute to the performance improvement and organizational progress. It has to be understood that employee satisfaction is not only oriented to economics but also social factor, employment conditions gives dissatisfaction influence over the job duties performance. This is due to every employee has difference attitude, the nature of desire and personality, and interest. Therefore, it is a reason why the figure of good leader is needed. Employees need someone who can be a role model to perform their duty and able to motivate of how to do in an organization. Employee, as an organizational player who bears the realization of organizational goal, has an idea, sense and desire which can influence his/her attitude towards job duties they have. If linked to that statement, thus every employee at BAPPEDA Papua has goal, expectation and needs which must to be reached. It is an either-or situation - achieved or not expectation will affect the level of their performance. For that reason, variable of employee satisfaction also plays an important role in the organizational success since it reflects someone's feel about his/her job duties shown by employee's positive behavior towards all of matters faced in a workplace (Handoko, 2001). The whole progress of organizational performance is an effect of the improvement of employee performance who feels satisfied with his/her duty. Job satisfaction in the work place depends on what expected and got by employee since basically job satisfaction is individualistic and relies on each personal of every employee. The appearance of phenomenon, such as absenteeism, productivity which indicates low, the appearance of anxiety, and the demands lead to strike indicates the low level of employee's commitment towards organization. It also shows dissatisfaction of employee so that will hamper the whole performance of an organization.
Based on to the background explained above, then the problems that will be researched are as follows:
Does leadership orientation have significant influence over the employee performance?
Does job satisfaction have significant influence over the employee performance?
LITERATURE REVIEW
The result of study conducted by Cheng-Kang and Chuan-Yin (2011) as well as Xiao-Dong, et al. (2013) supports the finding of Fayyaz et al. (2014) which state that leadership encourages the improvement of employees' performance. There is positive and significant direct relationship with employee performance. If a leader has a competence as expected by employees, high integrity and ability to give guidance which can be accepted by individuals in an organization, then the employee performance will improve. According to Mulyadi (2015), leadership is an ability owned by someone to influence a group to reach vision and mission. The influence resulted can be formal as a consequence of a position in an organization, but it does not guarantee someone can be an effective leader. It is often found that informal leadership is indeed playing an important role or even more than the formal one.
Job satisfaction is one of the forms of employee behavior's result in an organization that influences motivation and passion, productivity and achievement, as well as other forms of behavior (Darmawan, 2013). A study conducted by Shokrkon and Naami (2009) and Ahmad, et al. (2010) shows that people who satisfied with their work will indicate a better performance for their work. Similarity of research conducted by Hayati and Caniago (2012) to this one is in the use of variable of job satisfaction and employee performance showing strong relationship. However, this study sees relationship of those two variables based on the theory of two-factor theory (Hezberg), while the one conducted by Hayati and Caniago (2012) uses the theory of Minnesota Satisfaction Questionnaire (msQ). Bagia (2015) contend that job satisfaction is part of live satisfaction that relates to the feeling and common attitude of someone towards his/her job duties.
CONCEPTUAL FRAMEWORK
This study assesses and explains relational models of variable of leadership orientation and job satisfaction towards employee performance. Leadership is an ability owned by someone to build confidence and get support from the member of organization to achieve organizational goal (Dubrin, 2001).
Figure 1 - Conceptual Framework
Theory of two-factor by Hezberg proposes that someone's job satisfaction comes from intrinsic and extrinsic factor. Factor coming from within or intrinsic factor is a motivating factor which if it is fulfilled will create a satisfaction but if not will only create without satisfaction. While the factor comes from work environment (extrinsic factor) is a hygiene factor, if it is fulfilled, it will create without dissatisfaction but if not, it will create dissatisfaction.
METHODS OF RESEARCH
According to the research's aim which has been set, it can conclude that this is explanatory research. It aims to test the hypothesis of each variable which is hypothesized to justify or strengthen that hypothesis and determine the nature of relationship between dependent and independent variable (Wiyono, 2011). This study was undertaken in Papua province and the object of the study is BAPPEDA Papua. Population of this study is civil servants of BAPPEDA Papua which comprises of echelon III and IV officials and staff amounting to 189 people. This was census study (total population sampling) at which the respondents amount to 188 people. Data collection method used in this study was through personally administered questionnaires structurally arranged in a list of question based on the indicator of research variable, then it will be acquired data from questionnaire in the form of respondent's answer and also interview to a couple of competent interviewees.
Partial Least Square analysis is a regression unity based-method introduced by Herman O.A Wold to create and build a model and methods for social sciences with prediction oriented-approach. Hypothesis testing on mediation variable was done through Sobel test procedural. Sobel test relates to test significance of coefficient of non-direct influence path.
RESULTS AND DISCUSSION
The average value of leadership orientation variable is 3.60. It means that most of respondents give statement in a good scale. Indicator of orientation on job duties/assignment, orientation on relationship with employees, and orientation on change is good enough to use in the measurement of leadership orientation variable.
Direct coefficient of leadership orientation towards employee performance acquired path coefficient by 0.170, t-statistic of 2.647, and p-value by 0.008. The positive value of path coefficient by 0.170 indicates the influence of those two is in the same direction but in the extremely weak variable. t-statistic value >1.96 and p-value <0.05 of level of significance (alpha =5%), thus hypothesis stating that leadership orientation has significant influence towards employee performance can be accepted. According to the model testing and respondents' perception, orientation on relationship with employees are a dominant indicator to reflect leadership orientation. This means that the head of BAPPEDA, as the leader in the running of leadership orientation, has to be more paying attention of orientation towards relationship with employees since the situation and the readiness of BAPPEDA's employees today is more possible to accept leadership orientation which is focused on orientation of relationship with employees. However, orientation on job duties and change should remain to be the head of BAPPEDA's concern when implement the orientation of his/her leadership since the level of acceptance of BAPPEDA's employee towards leadership orientation that focuses on orientation of task or job duty and on change still can be accepted. A parallel and significant direct influence is able to strengthen the result of previous study. The result of the study conducted by Sharkie (2009) and Salman (2011) states that effective leadership is always directly linked to the employee performance. The finding of Lina's study (2014) indicates that the better the leadership applied, the better the improvement of employee performance.
The average value of variable of job satisfaction is 3.93. It means that most of respondents gives statement in a good scale. Indicator of motivation and hygienist factor is used well.
Direct influence of job satisfaction towards employee performance acquired path coefficient by 0.285, t-statistic by 3.349, and p-values by 0.001. Positive value of path coefficient by 0.285 indicates the influence of both two is in the same direction and the relationship is in the enough categories. t-statistic value >1.96 and p-values <0.05 of level of significance (alpha= 5%), thus hypothesis indicating job satisfaction has significant influence over employee performance can be accepted. Direct influence of job satisfaction towards employee performance acquired path coefficient by 0.285, t-statistic by 3.349, and p-values by 0.001. Positive value of path coefficient by 0.285 indicates the influence of both two is in the same direction and the relationship happened is in the enough categories. t-statistic value >1.96 and p-values <0.05 level of significance) alpha= 5%), thus hypothesis indicating job satisfaction has significant influence over employee performance can be accepted. The result of this study is in line with the finding of Hayati and Caniago (2012), Karneli et al. (2015), and Platisa et al. (2015) that shows positive and significant relationship between variable of job satisfaction and employee performance. The higher performance will be shown by those who feel satisfied with their work. According to the result of model testing, hygiene factors is the most dominant factor to reflect job satisfaction and then followed by motivation factor. On the other hand, the most important factor of employee performance is cooperative. It is then followed by quantity, quality of work, work efficiency, and discipline. Therefore, the better the employee satisfaction dominated by hygiene and motivation factor which is felt by employees, the higher the improvement of BAPPEDA's employee performance. Well established-cooperation with other working units or institution, high quantity of work, well quality of work, work efficiency which is smoothly run and BAPPEDA employees' discipline attitude indicating to be better is a reflection of improvement of employee performance. Peng's study (2014) shows that intrinsic employees' satisfaction (motivation factor) has stronger relationship towards someone else's performance than extrinsic factor (hygiene factor).
CONCLUSION AND SUGGESTIONS
Leadership orientation of the head of BAPPEDA which turns to be better able to improve employee performance. Orientation on employee relationship is main attention in
order to reach better leadership orientation, furthermore it is followed by orientation of job duties/task, and the last is orientation of change.
Job satisfaction of BAPPEDA felt well is able to increase employee performance as an effect of BAPPEDA organizational culture which is strong and has been nicely lasted.
Suggestions:
In responding the needs of organization on the improvement of human resource who have skill which corresponds to main duties and functions of BAPPEDA, then to run his/her leadership orientation the head of BAPPEDA is expected to be able to give a bigger chance to employees to more expand their carrier.
The head of BAPPEDA, who is also the helm, is expected to continuously perform an analysis and evaluation to find out how far the employee reach job satisfaction through the policy and decision of organization, so that it can be known if the demands of employees' duty and right have been carried out fairly.
Limitation of the research:
This research was limitedly conducted at the office of BAPPEDA Papua and involves civil servants who work there. For that reason, the result of this study cannot be generalized since may be the result will not be same if there is other researches with different object.
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