Analysis of Leadership Style and Employee Performance

Oct 13, 2025 by vinooalluri.com 76 views

Introduction

In today's fast-paced and competitive business environment, effective leadership is crucial for the success of any organization. The leadership style in a company plays a vital role in shaping the work culture, motivating employees, and driving business outcomes. A good leadership style can lead to increased employee performance, job satisfaction, and overall business success. Conversely, a poor leadership style can result in decreased employee morale, reduced productivity, and ultimately, business failure. This study aims to analyze the effect of leadership style on employee performance at PT. Medan Industrial Estate, a leading industrial estate in Indonesia.

Background of the Study

PT. Medan Industrial Estate is a prominent industrial estate in Indonesia, providing a range of services and facilities to its tenants, including infrastructure, utilities, and business support services. The company has a diverse workforce, comprising employees from various departments, including operations, maintenance, and administration. Effective leadership is critical in this organization, as it directly impacts employee performance, job satisfaction, and overall business success.

Methodology

This study employed a quantitative approach, using a sample of 78 employees from PT. Medan Industrial Estate. Data was collected through a questionnaire, interviews, and observations. The questionnaire was designed to measure the leadership style and employee performance of the participants. The interviews and observations were conducted to gather more in-depth information about the leadership style and its impact on employee performance.

Data Analysis

The data was analyzed using simple linear regression, which revealed a positive relationship between leadership style and employee performance. The results of the analysis showed that the leadership style has a significant influence on employee performance, indicating a direct relationship between good leadership style and high employee performance.

Analysis of Leadership Style and Employee Performance

Effective leadership style is not only essential for increasing employee motivation but also for creating a conducive work environment. Leaders who are able to communicate well, provide constructive feedback, and understand the needs and aspirations of employees tend to get better work from their teams. Employees feel valued and have a greater sense of responsibility for their work.

Conversely, an authoritarian leadership style or lack of listening to input from employees can cause dissatisfaction and reduce morale. Decreased employee performance can be seen from increasing the number of absence, decreased productivity, to reduced creativity at work. Therefore, it is essential for leaders at PT. Medan Industrial Estate to adopt a more inclusive and democratic leadership style.

Implications for the Company

The results of this study indicate that the application of positive leadership styles is very influential on employee performance at PT. Medan Industrial Estate. The company needs to pay attention and evaluate the leadership style applied by its managers. Leadership and self-development training for leaders becomes a necessity to ensure that they are able to inspire and motivate employees.

By improving leadership quality, the company will not only achieve better employee performance but can also improve the company's image and reputation in the eyes of employees and the community. High employee performance will contribute to the achievement of company targets and encourage sustainable growth.

Conclusion

The leadership style plays an essential role in determining employee performance at PT. Medan Industrial Estate. This study confirms that by applying a good leadership style, companies can significantly improve employee performance. Therefore, it is crucial for leaders to continue to learn and adapt to the needs of employees to create a productive and harmonious work environment.

Recommendations

Based on the findings of this study, the following recommendations are made:

Leadership and Self-Development Training: The company should provide leadership and self-development training for its leaders to ensure that they are able to inspire and motivate employees.
Inclusive and Democratic Leadership Style: The company should adopt a more inclusive and democratic leadership style to create a conducive work environment and increase employee motivation.
Regular Feedback and Communication: The company should provide regular feedback and communication to employees to ensure that their needs and aspirations are met.
Employee Engagement and Participation: The company should encourage employee engagement and participation in decision-making processes to increase employee motivation and job satisfaction.

Limitations of the Study

This study has several limitations, including:

Sample Size: The sample size of this study is relatively small, which may limit the generalizability of the findings.
Data Collection Method: The data was collected through a questionnaire, interviews, and observations, which may be subject to bias and limitations.
Time Frame: The study was conducted over a relatively short period, which may not capture the long-term effects of leadership style on employee performance.

Future Research Directions

Future research should aim to:

Investigate the Long-Term Effects: Investigate the long-term effects of leadership style on employee performance and business outcomes.
Explore the Impact of Leadership Style on Employee Well-being: Explore the impact of leadership style on employee well-being, including job satisfaction, stress, and burnout.
Develop a Leadership Style Framework: Develop a leadership style framework that can be used to assess and improve leadership style in organizations.

Keywords: Leadership, employee performance, PT. Medan Industrial Estate, leadership style, employee motivation, job satisfaction, business success.

Q1: What is the main objective of this study?

A1: The main objective of this study is to analyze the effect of leadership style on employee performance at PT. Medan Industrial Estate.

Q2: What is the sample size of this study?

A2: The sample size of this study is 78 employees from PT. Medan Industrial Estate.

Q3: What methods were used to collect data in this study?

A3: Data was collected through a questionnaire, interviews, and observations.

Q4: What is the relationship between leadership style and employee performance?

A4: The results of the analysis show that the leadership style has a positive influence on employee performance, indicating a direct relationship between good leadership style and high employee performance.

Q5: What are the implications of this study for the company?

A5: The results of this study indicate that the application of positive leadership styles is very influential on employee performance at PT. Medan Industrial Estate. The company needs to pay attention and evaluate the leadership style applied by its managers. Leadership and self-development training for leaders becomes a necessity to ensure that they are able to inspire and motivate employees.

Q6: What are the benefits of adopting a good leadership style?

A6: Adopting a good leadership style can lead to increased employee performance, job satisfaction, and overall business success. It can also improve the company's image and reputation in the eyes of employees and the community.

Q7: What are the limitations of this study?

A7: This study has several limitations, including a relatively small sample size, data collection methods that may be subject to bias and limitations, and a short time frame for data collection.

Q8: What are the future research directions?

A8: Future research should aim to investigate the long-term effects of leadership style on employee performance and business outcomes, explore the impact of leadership style on employee well-being, and develop a leadership style framework that can be used to assess and improve leadership style in organizations.

Q9: What are the recommendations for the company based on the findings of this study?

A9: Based on the findings of this study, the following recommendations are made:

Leadership and Self-Development Training: The company should provide leadership and self-development training for its leaders to ensure that they are able to inspire and motivate employees.
Inclusive and Democratic Leadership Style: The company should adopt a more inclusive and democratic leadership style to create a conducive work environment and increase employee motivation.
Regular Feedback and Communication: The company should provide regular feedback and communication to employees to ensure that their needs and aspirations are met.
Employee Engagement and Participation: The company should encourage employee engagement and participation in decision-making processes to increase employee motivation and job satisfaction.

Q10: What are the implications of this study for the broader business community?

A10: The findings of this study have implications for the broader business community, highlighting the importance of effective leadership in driving business success and employee well-being. Organizations can learn from the study's recommendations and apply them to improve their leadership style and employee performance.

Keywords: Leadership, employee performance, PT. Medan Industrial Estate, leadership style, employee motivation, job satisfaction, business success.