International Journal of Scientific Research and Management (IJSRM)
||Volume||XX||Problem||XX||Page||01-03||2024|| Website: https://ijsrm.net ISSN (e): 2321-3418 DOI: 10.18535/ijsrm/vxxixx.emxxTHE INFLUENCE OF LEADERSHIP AND ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE WITH WORK DISCIPLINE AS A MEDIATING VARIABLE AT THE
BENGKALIS REGENCY HEALTH OFFICE, RIAU PROVINCE
Regian Lutfy 1, Puspita Wulansari 2
1Telkom University, Master of Management, Faculty of Economics and Business, Bandung, Indonesia
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Abstract:
This study aims to determine and analyze the influence of leadership and organizational culture on employee discipline and performance. To determine and analyze the influence of discipline on employee performance. To determine and analyze the influence of leadership and organizational culture on employee performance through employee discipline at the Bengkalis Regency Health Office, Riau Province. The population referred to in this study were all employees working at the Bengkalis Regency Health Office, totaling 146 people, the number of samples used was 107 people. The research method used was quantitative. Data analysis used in this study was Structural Equation Modeling (SEM). The results of the study showed that a) leadership had an effect on work discipline. b) organizational culture had an effect on work discipline. c) leadership had an effect on employee performance. d) organizational culture had an effect on employee performance. e) work discipline had a significant effect on employee performance. f) leadership had a significant effect on employee performance through work discipline. g) organizational culture had a significant effect on employee performance through work discipline.budaya organisasi mempunyai pengaruh yang signifikan terhadap kinerja pegawai melalui disiplin kerja.
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Keywords: Leadership, Organizational Culture, Work Discipline, Employee Performance
1.INTRODUCTION
Performance focuses on what comes out or the outcomes of a job's functions. Further investigation reveals that a job or position is a process that converts inputs into outputs. The government issued Law Number 5 of 2018 concerning the State Civil Apparatus after performance includes elements of competence and productivity of results, specifically organizational goals (Kasmir, 2018), performance assessment standards for employees, and the State Civil Apparatus (ASN). As a result, performance outcomes are highly dependent on the level of individual ability in achieving them. According to Article 76, ASN performance evaluation is conducted by considering ASN behavior as well as goals, accomplishments, outcomes, and benefits attained. It is based on performance planning at the person, unit, and organization levels. Please refer to the following table for further information:
Table 1 Targets and Realization of Expenditure of the Bengkalis Regency Health Office in 2020-2022
| Not |
Year |
Spending Target (Rp) |
Expenditure Realization
(Rp) |
% |
| 1 |
2020 |
222.764.154.947 |
206.141.717.561 |
92,54% |
| 2 |
2021 |
271.091.768.486 |
228.188.045.056 |
84,17% |
| 3 |
2022 |
306.351.617.927 |
287.546.833.329 |
93,86% |
Data Source: Bengkalis Regency Health Office, 2023
Table 1 illustrates how the realization of spending has changed over the past few years. This undoubtedly demonstrates that the Bengkalis Regency Health Office experienced a number of performance issues with the budget's implementation, including inadequate financial planning and activities, budget allocation that is irrational, effective, and pertinent to the planned accomplishments and results, the execution of activities that have not been carried out as planned, and a disproportionate budget absorption model that tends to accumulate at the end of the fiscal year and presents the quality of spending results that have fallen short of the target.
Additionally, there are other budget management realizations that fall short of 100%, such the expenditures on office stationery, tool/materials for printing office activities, and tools/materials for postal office activities. This is evident from the statistics comparing the expenditure target and actual spending; in 2020, the objective was Rp 222,764,154,947, while the actual amount spent was Rp 206,141,717,561, or 92.54%. In 2021, the aim was set at Rp 271,091,768,486 (or 84.17%), and the realization was Rp 43,811,760,849; in 2022, the target was set at Rp 306,351,617,927, and the realization was Rp 287,546,833,329 (or 93.86%). Based on this data, it is evident that the goals set over the last three years have not been fully realized and have even tended to decline in terms of actualization.
Experts Cashmere (2019:189), Mangkuprawira (2018), and Robin (2018) assert that a variety of factors, such as company culture, work discipline, and leadership, can affect employee performance. Include a lot of elements from other publications, not just the x variable to be researched.
According to the findings of an interview conducted on October 19, 2023, with the Head of Human Resources of the Bengkalis Regency Health Office, the phenomenon that took place at the Bengkalis Regency Health Office concerning the degree of discipline was the number of employees who arrived late and those who left early. Additionally, there were still employees who wandered around the office during working hours, left to watch TV, or engaged in non-work-related conversations. One of the issues with employees' lack of discipline is this.
Employee attendance data shows that the average annual absence has been rising over the past three years. This demonstrates the necessity for strict action in issuing warnings and punishments as staff continue to lack discipline and excitement in their job. In order to optimize and improve work discipline, employees must be able to do their duties in accordance with their policies and responsibilities and have strong leadership support.
Many people believe that leadership is the most crucial element in determining whether an organization succeeds or fails. According to Menon (2002), a leader's success or failure is typically seen as the success or failure of an organization, whether it be public or business-oriented. The importance of leaders' roles is so great that they are now a factor that draws the attention of organizational behavior experts.
The following are examples of leadership-related phenomena: 1) Employees still struggle to understand the tactics used by the leadership. 2) Leaders are less able to motivate staff to perform at their best, and 3) Leaders do not care about their subordinates. 4) The team's cohesiveness is still regarded as lacking, and 5) The leadership disregards the divisions that now exist. In order to ensure that the volume and workload are focused on the objective, it will be consistent with the need that every leader give careful consideration to cultivate, mobilize, and guide all prospective employees in his surroundings.
Additionally, research by Aprilianti & Syarifuddin (2022) found that work discipline and organizational culture have a significant impact on employee performance, while Dafmawati et al. (2017) found that discipline has an impact on performance. These findings differ from those of Mairia et al. (2021), who found that leadership had no effect on performance, and Solossa et al. (2018), who found that discipline has an impact on performance but organizational culture and leadership have no effect.
2.LITERATURE REVIEW
< >Employee PerformanceEmployee DisciplineLeadershipOrganizational Culture
The research methodology is derived from a number of completed investigations that yield research findings. The researcher uses discipline as a mediating variable to conceptualize the impact of organizational culture and leadership on performance, drawing on a variety of theoretical sources. Figure 1 below explains the conceptual description:
H1 : Leadership affects employee discipline.
H2 : Organizational culture affects employee discipline. H3 : Leadership affects employee performance.
H4 : Organizational culture affects employee performance. H5 :D Isiplin affects employee performance.
H6 : Leadership affects employee performance through employee discipline.
H7 : Organizational culture affects employee performance through employee discipline.
The researcher tests the link between variables using the SEM-PLs approach in order to ensure that the study process runs smoothly. Because SEM can test both structural and measurement models at the same time and assess both direct and indirect correlations between variables, it was selected.
5.Implication
5.1. Structural Equarion Modeling Analysis (SEM)
A questionnaire that asked respondents to reply to statements or questions on variable indicators of performance (Y), discipline (Z), and leadership and organizational culture (X) was used to gather study data. The Structural Equation Modeling (SEM) approach was used to investigate these variables.
SEM is a method that combines two statistical methodologies to characterize the cause-and-effect connection between exogenous (independent) and endogenous (dependent) variables:
1. A measuring model based on factor analysis.
2. Path analysis as a model for structure.
PLS Structural Equation Modelling (SEM), which is run using the Smart PLS software version 3.0, was the data analysis method employed in this investigation. In order to answer research questions and identify specific social phenomena, this study necessitates data analysis and interpretation. Therefore, the act of making data simpler to read and understand is known as data analysis. SEM is the analytical approach utilized in this study since the model that will be used to evaluate the hypothesis is a causality or impact connection model. Smart PLS version 3.0 has been utilized in management and equations research as a structural equation model.
5.2
Partial Least Squared SEM Output Results
The Partial Least Square (PLS) method is used in this study's data analysis, and
Smart PLS 3.2.8 software is used.A structural equation (SEM) model based on variance components is called partial least squares (PLS). No particular distributed data is used in the PLS technique, which is distribution free and can employ nominal, category, ordinal, interval, or ratio data. Furthermore, tiny samples may be measured using PLS.
Assessing the Outside Model
The relationship between each indicator block and its latent variables is defined by model measurements or outer models. An illustration of the PLS Algorithm utilized in this investigation is shown below:
Figure 1 Outer Model Analysis
The criteria of the PLS Algorithm in figure 1 above can be explained as follows:
Loading was the sole variable examined in the convergent validity test. Table 2 displays the ujin's findings:
Table. 2 Results of convergent validity test (loading factor)
Observed variables |
Loading Factor |
Construction Reliability |
Average Variance
Extracted |
| Leaders in making decisions according to the right conditions |
0.936 |
0.966 |
0.764 |
| Leaders must be quick in making decisions |
0.870 |
| Leaders always pay attention to subordinates by providing work spirit |
0.919 |
| Leaders reward employees' work by rewarding |
0.786 |
| Leaders in providing work instructions using easy-to- understand language |
0.931 |
| Leaders are easy to communicate with |
0.926 |
| Leaders are always firm with their subordinates |
0.917 |
| Leaders have the ability to manage subordinates |
0.910 |
Leaders are responsible for the results achieved by their
subordinates |
0.928 |
| Leaders emphasize personal relationships with fellow employees |
0.886 |
| Leaders participate directly in helping employees who experience difficulties or mistakes. |
0.919 |
| Leaders have the ability to regulate their emotions |
0.932 |
| I show up at work on time |
0.878 |
0.967 |
0.837 |
| I have been working seriously at this time |
0.920 |
| I should have a good level of thoroughness in my work |
0.948 |
| I have been working seriously at this time |
0.958 |
| The personal facilities provided to me must be well maintained |
0.952 |
| I am required to have responsibility in my work |
0.906 |
| I in this agency have worked in accordance with its functions and duties |
0.835 |
Employees who are assessed to be
able to complete the work with the right results (high quality) |
0.869 |
0.986 |
0.836 |
Observed variables |
Loading Factor |
Construction Reliability |
Average
Variance Extracted |
| The quality of work of these employees is much better than other employees |
0.918 |
|
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| The work targets that have been set have been successfully achieved by the assessed employees |
0.916 |
The volume of work done by the Employee who is assessed has been in accordance with your
expectations |
0.928 |
| The tasks given to employees who are assessed can be carried out within a predetermined time |
0.934 |
| Employees who are assessed to complete their work efficiently |
0.928 |
| Employees who are considered able to use the information available in completing their work |
0.933 |
| Employees who are assessed are always working to find the best solution |
0.903 |
| Employees who are considered to be able to quickly master the work, can predict future circumstances |
0.869 |
| Employees who are assessed understand a complex problem quickly |
0.930 |
| Employees who are considered to be able to make decisions in stressed/difficult conditions |
0.926 |
| Employees who are considered able to collaborate with colleagues |
0.928 |
Employees who are considered
willing to help work team members in completing work |
0.938 |
| Employees who are considered to have high confidence and ability to make good decisions |
0.882 |
| Employees who are considered capable of collaborating with brothers as their leaders |
0.909 |
| I get satisfaction from the work I do. |
0.820 |
0.980 |
0.821 |
| I am always trying to improve myself and my abilities. |
0.844 |
| In carrying out every job, I always take the initiative and do not always |
0.857 |
Observed variables |
Loading Factor |
Construction Reliability |
Average
Variance Extracted |
rely on the guidance of the
leadership. |
|
|
|
| I always set a plan and try to get it done well. |
0.859 |
| Employees respect each other and give greetings when they meet |
0.859 |
| The employees are highly appreciative, respectful and helpful. |
0.873 |
| I always prioritize quality in getting work done |
0.897 |
| I always try to innovate to find new and useful things |
0.897 |
| In doing team tasks, we always discuss so that each goal can be synergized. |
0.902 |
| Whenever there is a problem in the work team, we always solve it well |
0.929 |
Source : Smartpls Processed Data, 2024
By evaluating the loading factor of each indicator in the variable, the convergent validity test seeks to determine if reflective indicators are construct indicators or latent variables, as explained in Table 2. The variable is considered legitimate in this test if the loading factor value is greater than 0.7. The fact that all of the variables in this study are over 0.7 indicates that they all exhibit strong convergent validity. Additionally, comparing each construct's root of the mean squared (AVE) with the correlation between it and the other constructs in the model is another way to evaluate the validity of discrimination. The concept is considered to have a high degree of validity if the AVE's root is greater than the correlation between the other constructs.
The findings indicate that the Cronbach's alpha value for all constructions is above 0.6, which is also the recommended value. Employee performance has the lowest score (0.905), while organizational culture has the highest score (0.959). Therefore, it can be said that all of the variables' Cronbach alpha values are above 0.6, indicating that every construct in the estimated model satisfies the requirements.
Structural Model Evaluation (Inner Model)
By examining the proportion of variations described, or the R2 value for the dependent latent variable using the predictive relevance (Q2) value, testing on the structural model is assessed. The better the model, the closer the Q2 magnitude, which has a range of 0 < Q2 < 1, is to 1. Similarly, if it is less than zero, the findings indicate that the model is not predictively relevant. An illustration of the PLS bootstrapping used in this work is provided here:
The formulation of the problem or research hypothesis serves as the foundation for the creation of the structural model of the connection between latent variables in PLS. The design of the measurement model (outdoor model) in PLS is crucial as it affects whether the indicator is formative or reflecting. The PLS measurement and structural models utilized in this investigation are listed below.
Figure 4.6 Structural Model (Inner Model)
Coefficient of Determination
Literacy is used to carry out the calculating process; if convergence criteria are met, literacy will cease. The determination coefficient employs R-squared, which displays the proportion of variance in endogenous/criterion constructs that may be accounted for by the exogenous/predictor postulated structures influencing it.
Table 3 R Square
| Variable |
R-squared adjustable |
| Discipline |
0.625 |
| Performance |
0.693 |
Source : Smartpls Processed Data, 2024
The employee performance variable's r square value, as shown by Table 6, was 0.693. This indicates that organizational culture, leadership, and work discipline account for 69.3% of employee performance variables; the remaining variables are impacted by additional factors not examined in this study. The work discipline variable's r square value was then determined to be 0.625. This indicates that organizational culture and leadership have an impact on 62.5% of the work discipline variables; the remaining variables are impacted by other factors that were not examined in this study.
Moreover, a value may be derived from the given results. Predictive relevance (Q2) using the subsequent formula:
Q2 = 1 – (1 – R12) (1-R22)
Q2 = 1 – (1 – 0.625) (1 – 0.693)
Q2 = 0.885
This indicates that organizational culture, leadership, and employee work discipline account for 88.5% of the variation in employee performance variables, with other factors outside the model accounting for the remaining 11.5%. It is possible to test hypotheses using this paradigm. Because a value above 60% is attained, the q2 obtained may be considered a model that has been built and has excellent model correctness. With a magnitude of q2 and a range of 0 < q2 < 1, this indicates that the model in this research is considered to have a strong predictive value and is appropriate for use in testing hypotheses; the closer the model is to the value of 1, the better.
Hypothesis Testing Direct Effect
The results of the direct effect hypothesis test will be shown in Table 4, and the causality connection in SEM-PLS utilizing Smartpls can be predicted using the p-value, standard errors, effect sizes, and T-statistics shown in the route coefficient table.
Table 4 The Direct Influence Hypothesis Test's findings
Hypothesis |
Original
sample (O) |
T Statistics (|O/STDEV|) |
P value |
Decision |
Organizational Culture ->
Discipline |
0.241 |
3.849 |
0.000 |
Accepted |
Organizational Culture ->
Performance |
0.218 |
3.957 |
0.000 |
Accepted |
| Discipline -> Performance |
0.431 |
3.330 |
0.001 |
Accepted |
| Leadership -> Discipline |
0.631 |
4.968 |
0.000 |
Accepted |
Leadership -> Performance |
0.203 |
3.269 |
0.000 |
Accepted |
Source : Smartpls Processed Data, 2024
The importance of the calculated parameters is displayed in Table 4, which offers valuable insight into the relationship between the variables under investigation. The value in the following route coeficients output serves as the foundation for evaluating the hypothesis:
The Influence of Leadership on Work Discipline
With a coefficient value of 0.631, a t statistic of 4.968, and a p value of 0.000, Table 4 above demonstrates that the path value of the impact of leadership on work discipline is significant. This indicates that there is a relationship between work discipline and leadership as the t-value is higher than 1.96. Therefore, it is acceptable for this study to conclude that "there is a connection between leadership and work discipline."
The Influence of Organizational Culture on Work Discipline
Table 4 demonstrates that organizational culture has a considerable impact on work discipline, as indicated by a coefficient value of 0.241, a t statistic of 3.849, and a p value of 0.000. The findings indicate that there is a relationship between work discipline and organizational culture, since the t-value is higher than 1.96. Therefore, the claim that "organizational culture influences work discipline" is accepted in this study.
The Influence of Leadership on Employee Performance
Table 4 displays a t statistic of 3.269, a p value of 0.000, and a path value of 0.203. The findings indicate that there is a relationship between employee performance and leadership as the t-value is higher than 1.96. Thus, "there is an impact between leadership and employee performance" was acknowledged in this study.
The Influence of Organizational Culture on Employee Performance
Table 4 shows that the t statistic is 3.957, the p value is 0.000, and the path value of the coefficient is 0.218. These principles demonstrate that employee performance and corporate culture are influenced. Therefore, the claim that "organizational culture influences employee performance" is accepted in this study.
The Effect of Work Discipline on Employee Performance
Table 4 shows that work discipline has a considerable impact on employee performance, as indicated by a path value of 0.431 coefficient, t statistic of 3.330, and p value of 0.000. Therefore, the claim that "job discipline affects employee performance" is accepted in this study.
Indirect Effect
Table 5 displays the following in order to investigate the mediating impact of some of these indirect effect hypotheses.
Table 5 Results of the Indirect Influence Hypothesis Test
Hypothesis |
Original sample
(O) |
T Statistics (|O/STDEV|) |
P
value |
Decision |
Organizational Culture ->
Discipline -> Performance |
0.281 |
2.567 |
0.011 |
Accepted |
Leadership -> Discipline ->
Performance |
0.272 |
2.338 |
0.020 |
Accepted |
Source : Smartpls Processed Data, 2024
The indirect impact between the research factors is evident from Table 8 above; further information is shown in the following details:
The Influence of Leadership on Employee Performance Through Work Discipline
Table 5 indicates that there is a substantial relationship between leadership and employee performance via work discipline, with the path value of the coefficient being 0.272, t statistic being 2.338, and p value being 0.020. The idea that "leadership improves employee performance through work discipline" is therefore acknowledged in this study.
The Influence of Organizational Culture on Employee Performance Through Work Discipline
The results of table 5 above, which show a coefficient value of 0.281, a statistical t value of 2.567, and a p value of 0.011, demonstrate the considerable impact of corporate culture on employee performance through work discipline. Accordingly, "there is an impact between corporate culture and employee performance through work discipline" was acknowledged in this study.
6.CONCLUSIONS AND SUGGESTIONS
Conclusion
The research's findings allow for the following deductions to be made:
< >The statement with the highest average score, according to the respondents' descriptions of their responses regarding leadership in the category of quite good, is that the leader values the work of his staff by rewarding them. This indicates that the leader always respects each of his subordinates and occasionally rewards those who are able to complete the tasks assigned. The assertion that the leader is capable of controlling his emotions receives the lowest average score, indicating that the leader is still unable to do so.The statement constantly aims to improve oneself and the ability to have the highest average score, which indicates that employees constantly make improvements to the work they have completed, according to the description of the respondents' responses regarding the organizational culture, including the sufficient category. The statement with the lowest average score is that I always take the initiative and do not always follow the leadership's directions when performing any task. This demonstrates that not all workers are willing to take the initiative and rely only on their bosses to complete their tasks.The respondents' responses at the work discipline level fall into the "very good" category. Nonetheless, some employees perform below average. This demonstrates that workers are constantly looking to improve the output of the tasks they are given. Furthermore, it is necessary to have responsibility at work, according to my remark. This demonstrates that workers consistently strive to be accountable for completing the tasks assigned to them, which is the greatest value.Employee performance falls into the "very good" category. because certain employees perform below average. The statement that I should be quite meticulous at work had the lowest average score, indicating that some employees are not as thorough in their completion of assignments. The statement that you are now working seriously has the greatest loading factor value, whereas the statement that you arrive at work promptly has the lowest loading factor value.Work discipline is impacted by leadership. As can be shown, the t statistic is 4.968, the p value is 0.000, and the coefficient value is 0.631. It is clear from this that the computed t-value is higher than 1.96. Enhancing subordinates' work discipline is a major responsibility of leadership. In actuality, executives still seldom ever ask their staff members to collaborate with the group that has been established based on their roles.Work discipline is impacted by organizational culture. With a p value of 0.000, a t-statistic of 3.849, and a coefficient value of 0.241, it is evident. The findings indicate that corporate culture has a significant role in determining work discipline, since the t-value is more than 1.96.Employee performance is impacted by leadership. It is evident from the coefficient value of 0.203, t statistic of 3.269, and p value of 0.000 that the impact of leadership on performance has a substantial coefficient path value. The findings indicate that there is a relationship between employee performance and leadership as the t-value is higher than 1.96.Employee performance is impacted by the culture of the organization. It is evident that the coefficient of organizational culture's impact on performance has a substantial path value. As can be observed, the t statistic is 3.957, the p value is 0.000, and the path value of the coefficient value is 0.218. These principles demonstrate that employee performance and corporate culture are influenced.Employee performance is significantly impacted by work discipline. According to the t statistic of 3.204, the p value of 0.000, and the coefficient path value of 0.336, it is evident that the impact of leadership on work discipline is considerable. Employees' work discipline is now lacking, and it is evident that some of them do not approach their responsibilities with professionalism, which contributes to their poor performance.Work discipline is one way that leadership significantly affects employee performance. With a t statistic of 2.338, a p value of 0.020, and a coefficient value of 0.272, it is evident that leadership significantly affects worker performance through work discipline. Because a lack of discipline in the workplace affects bad performance, individuals who lack leadership support for their subordinates are less disciplined.Employee performance is significantly impacted by organizational culture through work discipline. The findings of a coefficient value of 0.276, followed by a statistical t value of 2.484 and a p value of 0.017, demonstrate this. Work discipline plays a part in improving organizational culture, which in turn improves performance, since the current culture appears to be lacking. This implies that employee performance will increase with a stronger corporate culture and strict work ethics.Organizations must remind employees to emphasize excellent work outcomes in terms of performance, according to the findings of employee performance study. This may be accomplished by giving workers training, particularly foundational instruction and industry-appropriate knowledge requirements, so they can operate in accordance with the organization's values.Regarding staff discipline Organizations must regularly monitor and assess employee performance in order to enhance work discipline. This makes it easier to identify and address work discipline issues right away.Leaders need to assist their subordinates and maintain a tough attitude. In order for employees to enhance their own performance, leaders must assist their subordinates by offering ongoing coaching and briefing on each employee's tasks.In order to enhance corporate culture, companies need to engage in extracurricular activities and be open to hearing and accepting criticism. This may be accomplished by arranging work meetings or briefings outside of the office to enhance staff collaboration and communication.Promote leadership training in health offices that focuses on organizational principles and covers empowerment, communication, and leadership techniques.Provide a transparent, data-driven approach for performance reviews where staff members are aware of the goals and the repercussions of meeting or exceeding them. 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