THE EFFECT OF LEADERSHIP STYLE AND WORK ENVIRONMENT ON EMPLOYEE PERFORMANCE

Abstract

This study aims to predict and analyze the effect of leadership style and work environment on employee performance at the Head Office of PT Bank Central Asia Tbk, Merchant Processing and Merchant Administration Affairs Units. The data used in this study is primary data and  the research instrument is questionnaire using a Likert scale. This research was conducted on 80 respondents using a quantitative approach and hypothesis testing. For the data analysis method, Structural Equation Model (SEM) based on Partial Least Square (Smart-PLS) version 3.0 is used. This study able to predict that employee performance is not affected by leadership style while the work environment affects employee performance. The findings explain that the more effective the work environment, the better employee performance will be. The role of leadership style does not affect performance, it can be made possible by the conditions and characteristics of the work that are procedural and bureaucratic.

Keywords: Leadership Style, Work Environment and Employee Performance.

DOI: 10.7176/JRDM/82-04

Publication date: February 28^th 2022