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
- Publication History
- Published online: August 3, 2024
- DOI
- https://doi.org/10.35877/454RI.qems2690
- Copyright
- Copyright (c) 2024 Mahendra Siallagan
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.
Keywords
References (36)
- Alderfer, C.P. (1989). Theories reflecting my personal experience and life development. The Journal of Applied Behavioral Science, 25(4), 351-265.
- Afrin, S., Asyraf Bin Mohd Kassim, M., Yusof, M.F., Hassan, M.S., Islam, M.A., Khairuddin, K.N.B. (2023). Investigating the determinants of employee performance for sustainability: a study on the Bangladesh insurance industry. Sustainability, 15, 5674.
- Cameron, K.S., & Quinn, R.E. Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. San Francisco: Jossey-Bass.
- Cherian, J., Gaikar, V., Paul, R., Pech, R. (2021). Corporate culture and its impact on employees’ attitude, performance, productivity and behavior: an investigative analysis from selected organizations of United Arab Emirates (UAE). J. Open Innov. Technol. Mark. Complex., 7, 45.
- Deddy, A. (2022). Pengaruh kepemimpinan transformasional terhadap kinerja pegawai melalui kepuasan kerja pada Badan Pengelola Pajak dan Retribusi Daerah (BPPRD) Kota Jambi. Jurnal Manajemen Terapan dan Keuangan, 11(1), 171-185.
- Denison, D.R., & Mishra, A.K. (1995). Toward a theory of organizational culture and effectiveness. Organization Science, 6(2), 204-223.
- Dhyan, R., Parashakti, & Noviyanti, D. (2021). Pengaruh motivasi, lingkungan kerja, dan pelatihan kerja terhadap produktivitas kerja karyawan. Jurnal Ekonomi Bisnis, Manajemen dan Akuntansi, 1(2), 127-136.
- Diamantidis, A.D., Chatzoglou, P. (2019). Factors affecting employee performance: an empirical approach. International Journal of Productivity and Performance Management, 68(1), 171-193.
- Gemina, D., Samsuri, Khoirunisa, L.A., Harini, S., Palahudin. (2023). Employee performance based on motivation and work environment. IJSS, 3(3), 339-350.
- Gumasing, M.J.J.; Rendon, E.R.A.; German, J.D. Sustainable Ergonomic Workplace: Fostering Job Satisfaction and Productivity among Business Process Outsourcing (BPO) Workers. Sustainability 2023, 15, 13516.
- Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2009). Multivariate data analysis. New Jersey.
- Idris, M., Maryadi, Saripuddin, D., Firman, A., & Hidayat, M. (2022). The effect of transformational leadership style, organizational culture and work motivation toward employee performance (Study on developer companies in makassar). Academy of Strategic Management Journal, 21(1), 1-15.
- Ingsih, K., Wuryani, W., Suhana, S. (2021). The role of work environment, work motivation, and leadership to improve employee performance with job satisfaction as an intervening variables. Academy of Strategic Management Journal, 20(3), 1-12.
- Kasmir. (2005). Pemasaran Bank. Jakarta: Kencana.
- Kongkaew, W.W., & Nuangjamnong, C. (2023). A study of the effect of leadership style towards organizational culture on job satisfaction and employee performance in Bangkok. The AU eJournal of Interdisciplinary Research, 8(2), 21-34.
- Kreiter, R., & Kinicki, A. (2013). Organizational Behavior (10th ed.). Boston: McGraw-Hill.
- Kuswati, Y. (2020). The effect of motivation on employee performance. BIRCI-Journal, 3(2), 995-1002.
- Lindeberg, P., Saunila, M., Lappalainen, P., Ukko, J., & Rantanen, H. (2022). The relationship of physical, digital and social work environment changes with the development of organizational performance in the activity-based work environment. Facilities, 40(15/16), 72-88.
- Lussa, M.F., Sudiro, A. Hapsari, R.D.V. (2023). The effect of work motivation and work environment on employee performance through work engagement. International Journal of Research in Business and Social Science, 12(9), 134-143.
- Luthans, F. (2011). Organizational Behavior: An Evidence-Based Approach (12th ed.). New York: McGraw-Hill.
- Makhmut, K.D.I., Armanu, & Kurniawati, D.T. (2023). Mediating employee engagement at the Pratama Tax Services Office in East Java III: The effect of employee engagement and organizational culture on employee performance. IJRBS, 12(1), 110-120.
- Ohemeng, F.L.K., Amoako-Asiedu, E., & Darko, T.O. (2018). The relationship between leadership style and employee performance: an exploratory study of the Ghanaian public service. International Journal of Public Leadership, 14(4), 274-296.
- Pawirosumarto, S., Sarjana, P.K., & Gunawan, R. (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), 1337-1358.
- Rivai, M. (2014). Manajemen Sumber Daya Manusia untuk Perusahaan. Jakarta: Grafindo Persada.
- Robbins, S.P., & Judge, T.A. (2017). Organizational Behaviour (17th ed.). London: Pearson Education Ltd.
- Sari, A.M., Ribhan, Erlina, R.R. (2021). The effect of the work environment on employee performance with motivation as a mediation variables. International Journal of Disaster Recovery and Business Continuity, 12(1), 372-382.
- Sriyani. (2022). Pengaruh motivasi, kepemimpinan transformasional, dan kepuasan kerja terhadap kinerja pegawai BPDASHL Citarum-Ciliwung. Tesis. Institut Pertanian Bogor.
- Strengers, J., Mutsaers, L., van Rossum, L., & Graamans, E. (2022). The organizational culture of scale-ups and performance. Journal of Organizational Change Management, 35(8), 115-130.
- Sugiyono, E., & Rahajeng, R.S. (2022). Pengaruh budaya organisasi, gaya kepemimpinan dan kepuasan kerja terhadap kinerja pegawai melalui motivasi pegawai sebagai variabel intervening pada dinas ketahanan pangan, kelautan dan pertanian Provinsi DKI Jakarta tahun 2020. Fair Value: Jurnal Ilmiah Akuntansi & Keuangan, 4(7), 2691-2708.
- Tentama, F., Subardjo, S., Mulasari, S., & Meilani, E. (2019). The role of job satisfaction on employee work productivity. January. Proceedings of the First International Conference on Progressive Civil Society (ICONPROCS 2019).
- Togatorop, A.D.F., Andri, S., & Mandataris. (2024). The influence of organizational culture and transformational leadership on work productivity through employee job satisfaction as an intervening variable. Cerdika: Jurnal Ilmiah Indonesia, 4(2), 200-213.
- Tran, Q. H. N. (2021). Organisational culture, leadership behaviour and job satisfaction in the Vietnam context. International Journal of Organizational Analysis, 29(1), 136-154.
- Umar, H. (2014). Manajemen Riset dan Perilaku Konsumen. Jakarta: Gramedia.
- Wang, X., & Ye, Y. (2021). The relationship study between teachers' perceptions toward organizational culture and their job satisfaction at a polytechnic in Henan, China. Human Sciences, 13(1), 253-263.
- Wijanto, S.H. (2008). Structural Equation Modelling dengan LISREL 8.8: Konsep dan Tutorial. Yogyakarta: Graha Ilmu.
- Wulandari, W. (2022). Pengaruh gaya kepemimpinan transformasional, budaya organisasi dan komitmen organisasi terhadap kepuasan kerja (studi pada PT Karunia Makmur Abadi. Journal of Fundamental Management, 2(1), 139-154.
