Impact of Transformational Leadership Style, Adhocracy Organizational Culture, Work Environment, Work Motivation, and Job Satisfaction toward Work Productivity of Bank XYZ Employees in Regions K and L

Mahendra Siallagan

doi:10.35877/454RI.qems2690

Mahendra Siallagan Department of Management, Faculty of Economics and Business, Universitas Indonesia, Depok, 16424, Indonesia (ID)

https://doi.org/10.35877/454RI.qems2690

Keywords: Adhocracy culture, transformational leadership, work environment, banking, work productivity

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Abstract

The banking industry in Indonesia is rapidly growing and becoming more competitive. Banks are striving to gain market share by offering innovative products and services and ensuring excellent customer service. XYZ has capitalized on this growth, evidenced by a 11.7% YoY credit growth in various sectors in 2022. Despite overall positive performance, some branch offices face challenges in optimizing productivity. This study aims to analyze factors influencing work productivity at XYZ. Six variables are examined leadership style, organizational culture, work environment, work motivation, job satisfaction, and work productivity. Data from 350 respondents at XYZ Bank K and L region were analyzed using SEM LISREL. The study finds that a significant direct influence was found between transformational leadership style and work environment on work motivation, adhocracy organizational culture and work environment on job satisfaction, and job satisfaction on work productivity at Bank XYZ. There is no significant influence between adhocracy organizational culture on employee work motivation, transformational leadership style on employee job satisfaction, transformational leadership style on work productivity, adhocracy organizational culture on work productivity, work motivation on work productivity, and work environment on work productivity at Bank XYZ . The mediating relationship that was not significant in this research was the relationship between transformational leadership style, adhocracy organizational culture, and work environment on work productivity through work motivation, as well as transformational leadership style on work productivity through job satisfaction. This research shows that there are two significant mediating relationships, namely adhocracy organizational culture influences employee productivity through job satisfaction and the work environment influences work productivity through job satisfaction. The managerial implication is that XYZ Bank should adopt a transformational leadership style, adhocracy organizational culture, and prioritize work environment improvements to enhance work motivation and job satisfaction, ultimately leading to increased work productivity.

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