Effect of Leadership and Motivation on the Employee Performance Through Work Environment as Intervening Variable (Case Study at PT ATS)

Abstract

The aim of this study is to analyse the effect of leadership and motivation, using work environment as intervening variable, on the employee performance in the context of PT ATS. In this study, a structured questionnaire was developed by using Likert scale and applied on 131 respondents, whom their various jobs are directly relating to the operations within observation period of 2019. Leadership and motivation act as independent variables, work environment as intervening and employee performance as dependent one. The method used for the research is quantitave, applying survey and path analysis technique. For data analysis purpose, SPSS is used for descriptive statistic and PLS applied for developing structural and measurement models. The outcome of this study shows that leadership has no significant effect on employee performance, both directly or indirectly, through work environment. Meanwhile, motivation has significant direct and indirect (through work environment) effect to the performance of employees. Both leadership and motivation, have significant direct effect on the work environment. Work environment also has direct effect significantly on the employee performance significantly. Work environment also performs as full mediator within the effect of leadership to the employee performance. In the meantime, work environment contributes as partial mediator within the effect of motivation to the employee performance.

Keywords: Leadership, Motivation, Work Environment, Employee Performance

DOI: 10.7176/EJBM/12-3-09

Publication date: January 31^st 2020