Analysis of Leadership Style and Organizational Culture on the Performance of Employees of the Directorate of Commercial Order of the Ministry of Trade with Organizational Commitment as a Mediation Variable

Geiger Fransisco Nainggolan; M. Chaerul Rizky; Kholilul Kholik

doi:10.61994/equivalent.v4i1.1810

Authors

Geiger Fransisco Nainggolan Universitas Pembangun Panca Budi, Medan, North Sumatra Author
M. Chaerul Rizky Universitas Pembangunan Panca Budi, Medan, North Sumatera Author
Kholilul Kholik Universitas Pembangunan Panca Budi, Medan, North Sumatera Author

DOI:

https://doi.org/10.61994/equivalent.v4i1.1810

Keywords:

Leadership Style, Organizational Culture, Organizational Commitment , Employee Performance

Abstract

This study aims to analyze the influence of leadership style and organizational culture on employee performance with organizational commitment as a mediating variable at the Directorate of Commercial Order of the Ministry of Trade. This study uses a quantitative method with a causal associative approach. The research population was all employees of the Directorate of Trade Order of the Ministry of Trade totaling 141 people, with a sample of 59 respondents determined using the Slovin formula and simple random sampling techniques. Data was collected through a structured questionnaire distributed through Google Form and analyzed using Structural Equation Modeling-Partial Least Square (SEM-PLS) with SmartPLS software. The results of the study show that: (1) Organizational Culture has a positive and significant effect on Organizational Commitment; (2) Organizational Culture does not have a significant effect on Employee Performance; (3) Leadership Style does not have a significant effect on Organizational Commitment; (4) Leadership Style has a positive and significant effect on Employee Performance; (5) Organizational Commitment has a positive and significant effect on Employee Performance; (6) Organizational Commitment is able to mediate the influence of Organizational Culture on Employee Performance; and (7) Organizational Commitment is not able to mediate the influence of Leadership Style on Employee Performance. This study concludes that organizational commitment is a dominant factor that affects employee performance and plays a mediator in the relationship between organizational culture and employee performance.

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