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Why Employee Job Satisfaction is More Important than Leadership ?: A Case Study at SMEs

Ahmad Nizar Yogatama(1Mail), Dinda Rohma Dewi Susanti(2),
(1) Faculty of Economics and Business Institut Teknologi dan Bisnis Asia Malang, Indonesia
(2) Faculty of Economics and Business Institut Teknologi dan Bisnis Asia Malang, Indonesia

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Abstract


This study aims to analyze the influence of leadership on employee performance and employee job satisfaction, also how employee satisfaction mediate leadership and employee performance at PT. Evelia Karya Utama. The samples in this study were 34 employees of PT. Evelia Karya Utama with the sampling method used in this study is probability sampling as sampling techniques. The data obtained were analyzed using the Partial least Square (PLS) application. Other analysis includes validity test, reliability test, influence test and hypothesis test through coefficient of determination (R²), T Statistics and path coefficients. This study find that Leadership has a negative and not significant effect on employee performance, Leadership has a positive and significant effect on Employee Satisfaction, Employee Satisfaction has a positive and significant effect on employee performance, but Leadership indirectly influences employee performance through employee job satisfaction rejected because employee satisfaction are more important to increase employee performance. Practical Implications are employee satisfaction must be maintained by the company because satisfaction can improve employee performance compared to improving leadership.


Keywords


Job Satisfaction; Leadership; Employee Performance

   

Article DOI



DOI: https://doi.org/10.33122/ijase.v2i1.80 		       

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International Journal of Advances in Social and Economics (IJASE) | E-ISSN: 2685-2691