THE INFLUENCE OF LEADERSHIP STYLE ON PERFORMANCE

EMPLOYEES MEDIATED BY WORK MOTIVATION AND

WORKING CULTURE IN TRANSPORTATION SERVICE DEPARTMENT OF
YOGYAKARTA
Kunto Wibisono1, Siti Kusandhitasari Jayaningrum*2, Perta Surya Mega Wijaya3, Budi
Setyanta4, Krysty Handayani5
1,2,3,4,5STIE Isti Ekatana Upaweda Yogyakarta, Indonesia

Article’s Information ABSTRACT

DOI: This study aims to determine the effect of (1) Leadership Style on
10.32815/jibeka.v18i1.1951 Employee Performance, (2) Leadership Style on Work Motivation, (3)
Work Motivation on Employee Performance, (4) Leadership Style on
ISSN: Employee Performance mediated by Work Motivation, (5) Style
0126-1258 Leadership on Work Culture, (6) Work Culture on Employee
Performance and (7) Leadership Style on Employee Performance
ISSN-E: mediated by Work Culture. Sampling uses Slovin Formula resulted in 84
2620-875X respondents from a total of 107 employees of Transportation Service
Department Yogyakarta. Methods of data collection uses
CORRESPONDENCE*: questionnaires. This research uses Data Quality Test and Hierarchical
dhita2876.2@[Link] Regression Analysis. The study results show that Leadership Style
plays a positive role on Employee Performance. Leadership Style plays
a positive role on Work Motivation. Work Motivation plays a positive role
on Employee Performance and is expressed as a Mediator variable on
the effect of Leadership Style on Employee Performance. Leadership
style has no effect on employee performance. Work Culture is declared
not a mediator on the influence of Leadership Style on Employee
Performance.

Keywords: Leadership Style, Employee Performance, Work

Motivation and Work Culture

ABSTRAK
Penelitian ini untuk mengetahui pengaruh (1) Gaya Kepemimpinan
terhadap Kinerja Pegawai, (2) Gaya Kepemimpinan terhadap Motivasi
Kerja, (3) Motivasi Kerja terhadap Kinerja Pegawai, (4) Gaya
Kepemimpinan terhadap Kinerja Pegawai yang dimediasi oleh Motivasi
Kerja, (5) Gaya Kepemimpinan terhadap Budaya Kerja, (6) Budaya
Kerja terhadap Kinerja Pegawai dan (7) Gaya Kepemimpinan terhadap
Kinerja Pegawai yang dimediasi oleh Budaya Kerja. Pengambilan
sampel dengan Rumus Slovin menghasilkan 84 responden dari total
107 karyawan Kantor Dinas Perhubungan Kota Yogyakarta. Metode
pengumpulan data menggunakan kuesioner. Penelitian ini
menggunakan Uji Kualitas Data dan Analisis Regresi bertingkat
(Hierarchical Regression Analysis). Hasil penelitian menunjukkan
bahwa Gaya Kepemimpinan berperan positif terhadap Kinerja Pegawai.
Gaya Kepemimpinan berperan positif terhadap Motivasi Kerja. Motivasi
Kerja berperan positif terhadap Kinerja Pegawai dan dinyatakan
sebagai variabel Mediator pada pengaruh Gaya Kepemimpinan
terhadap Kinerja pegawai. Gaya Kepemimpinan tidak berpengaruh
terhadap Kinerja pegawai. Budaya Kerja dinyatakan bukan mediator
pada pengaruh Gaya Kepemimpinan terhadap Kinerja Pegawai.

Kata Kunci: Gaya Kepemimpinan, Kinerja Pegawai, Motivasi Kerja

dan Budaya kerja
Kunto Wibisono, Siti Kusandhitasari Jayaningrum, Perta Surya Volume 18 Nomor 1
Mega Wijaya, Budi Setyanta, Krysty Handayani Halaman 87-99

Introduction

Employee performance is influenced by several factors, such as compensation, work

discipline, work environment, organizational culture, leadership and work motivation
(motivation), work discipline, job satisfaction, communication and other factors (Siagian in
Iwan, 2017). This research focuses on several factors that show influence to improve
employee performance, namely leadership style, work culture and work motivation.

Leadership is the ability to direct, influence and supervise subordinates so that they want to
act, behave and work in such a way as to be able to provide good work in order to achieve
company goals. (Harahap & Khair, 2019). A leader must always provide direction, foster,
and motivate its members in completing work to achieve organizational goals.

Organizations or companies that have good employee performance can improve the
performance of the organization or company itself. Performance is also a description of the
level of implementation achievement in an activity program or policy in realizing the goals,
objectives, vision, organization as outlined through an agency's strategic planning
(Moeheriono in Rifai et al., 2019). Performance on research of Ali & Agustian in Sari &
Fuadati (2022) is a record of the acquisition resulting from the function of a particular job or
activity during a certain period of time. So, performance with regard to the results of work
achieved by employees in a period. In this case performance is related to the quantity and
quality of work produced. Employee performance is important because employee
performance is the employee's achievement of the tasks assigned to him because the
company's progress is determined by the performance of all the company's employees
(Marwansyah in Jayaningrum et al., 2020)

The performance possessed by a person is sometimes not only related to the competence
possessed, because there are self and work environment factors that affect performance.
Motivation becomes a goal or a driver with the real goal which is the main driving force for
individuals in trying to get or achieve what they want, both positively and negatively.
(Gunawan et al., 2022). The motivation obtained from the leadership has the effect of
increasing enthusiasm for individuals in working voluntarily and creates a very strong desire
to excel. Robbins in Pramudjadi et al. (2022) defines motivation as a process that
determines the intensity, direction and determination of individuals in an effort to achieve
goals and objectives; Motivation is also a process that starts from strength in physiological
and psychological terms and in other words, needs that result in behaviour or
encouragement aimed at a goal or incentive. The motivation that arises gives
encouragement to work better.

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Effective leaders are leaders who recognize the important strengths contained within the
individual. Every individual has different needs and desires. Each individual has a different
level of expertise. Leaders must be flexible in understanding all the potential possessed by
individuals and the various problems faced by these individuals (Ahammad, et, al. in Karlina
& Herni, 2022). By taking this approach, leaders can apply all organizational rules and
policies and delegate tasks and responsibilities appropriately. This is in line with efforts to
foster organizational commitment from employees, so that leaders can later increase
employee satisfaction with work and can improve employee performance more effectively
(Cooke et, al. in Karlina & Herni, 2022).

Work culture is the same perception among all members of the organization about the true
meaning of life together. Organizational culture becomes a system of meaning held by
members that distinguishes the organization from other organizations and more
fundamentally it is stated that a system of shared meaning is formed by its employees which
is also a differentiator from other organizations or companies. (Robbins in Hairudinor et al.,
2020).

As is the case in every company, organization, institution, both government and private,
which of course clearly contains leadership, employee performance, work motivation and
work culture, the same goes for government agencies, Department of Traffic and Road
Transportation Service (LLAJ) Yogyakarta City. The Department of Transportation is
certainly related to vehicle traffic problems. The existence of transportation makes it easier
for people to carry out activities every day and makes it easier for people to reach certain
areas they want.

In addition to the positive impacts, the existence of transportation also has negative impacts,
such as an increase in the number of transportation vehicles which will cause more
emissions to be released. The Government of the Special Region of Yogyakarta made
regulations regarding air pollution control by issuing regional regulation number 5 of 2017.
Besides that, even though the government and the Department of Transportation have
made programs to deal with the negative impacts of this transportation, these efforts have
not gone completely well, so that the regional government and Department of
Transportation Service of Yogyakarta must further improve the quality of all aspects of the
organization both from leadership style, work performance, motivation and work culture at
Department of Transportation Service Yogyakarta. The quality of performance related to
leadership style, motivation and work culture at Department of Transportation Service of
Yogyakarta is being questioned because basically it is still not optimal in its achievements.
The programs carried out will not be optimal if they are not accompanied by employee
performance which will make everything feel in vain.

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Figure 1. Research Framework

Method

The location of this research was conducted at Department of Transportation Service of

Yogyakarta office located on Jl. Imogiri Timur, Giwangan district. Umbulharjo, City of
Yogyakarta, Special Region of Yogyakarta. The objects in this study were employees of
Department of Transportation Service Yogyakarta. The population is employees of
Department of Transportation Service Yogyakarta, totaling 107 persons. This study uses
the Slovin Formula which determines the number of samples, namely 84 respondents to
reduce errors and can provide better estimation results.

This research is quantitative in nature based on the philosophy of positivism to examine

certain populations and samples with data collection techniques or samples from generally
carried out randomly. The process of collecting data using research instruments. The data
analysis used is quantitative statistics with the aim of testing the hypotheses that have been
set (Sugiyono in Handayani et al., 2020). Jenis penelitian ini termasuk penelitian korelasi
untuk mengetahui tingkat hubungan antara dua variabl atau lebih yang dilakukan tanpa
adanya perubahan, tambahan, ataupun manipulasi terhadap data yang memang sudah ada
(Arikunto in Karlina & Herni, 2022).

The validity test uses the Person Product Moment Test to test whether the indicators used
in the instrument are significantly correlated and if r count ≥ r table (2-sided test with sig.
0.05) then the instrument or question items are significantly correlated with total score

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(declared valid) (Sanaky et al., 2021). The size of the high and low validity is measured
through loading with the help of SPSS. Factor loading is a question with a construct that is
measured. The reliability test of this study uses Cronbach's Alpha which is used to test the
reliability level of the measure, where an instrument can be said to be reliable if it has a
reliability coefficient or alpha of 0.6 or more (Riduwan in Zahra & Rina, 2018).

The hypothesis testing tool uses Hierarchical Regression Analysis which is a statistical
technique used to determine the effect of mediating variables (Work Motivation and Work
Culture) on the relationship between the independent variable (Leadership Style) and the
dependent variable (Performance of Employees of Department of Transportation Service
Yogyakarta). There are 4 steps to test the impact of mediating variables (Baron and Kenny
in Hasbar et al., 2020), which are :

a. The independent variable must have a significant effect on the dependent variable (B1
must be significant).

b. The independent variable must have a significant effect on the intervening variable (B2
must be significant).

c. The intervening variable must have a significant effect on the dependent variable (B3
must be significant).

d. Full mediation occurs when the independent variable (leadership style) has no
significant effect on the dependent variable (Performance of the Employee of
Department of Transportation Service Yogyakarta), after being mediated by Work
Motivation (intervening I) and Work Culture (intervening II), while partial mediation
occurs when the independent variables ( Leadership Style) still has a significant effect
on the dependent variable (Performance of the Employee of Department of
Transportation Service Yogyakarta), but the significant value has decreased.

Result and Discussion

The results of the validity test of 84 respondents using the person product moment
correlation technique state that the questions used in the study regarding the influence of
Leadership Style on Employee Performance mediated by Work Motivation and Work
Culture at Department of Transportation Service of Yogyakarta office with 60 questions all
declared valid. The reliability test obtains a Cronbach alpha value ≥ 0.60 for each variable
so that each variable was declared reliable. From the results of hypothesis calculations with
the help of the statistical product and service solution (SPSS) 25.0 for windows program,
the following results are obtained:

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The influence of leadership style on employee performance

The results of hierarchical regression analysis show that the significance value of leadership
style on employee performance is 0.025 < (smaller than) 0.050 so that the hypothesis that
leadership style has a positive effect on employee performance is accepted. Leadership
style is a leadership style that inspires employees by providing a profound and extraordinary
effect on employees. The existing leadership style provides many opportunities for
employees to be creative through autonomy. Providing more opportunities for employees
to be creative has an impact on these employees being more able to create and develop
their ideas for the benefit of the office, so that employees make a greater contribution to the
office. Leadership style can change and empower employees to understand the value of
work and to give importance to corporate rather than personal interests.
The observed trend in this study corresponds with prior research, suggesting that
transformational leadership, acknowledged as a preferred leadership method, positively
impacts different aspects of employee performance. Leaders with a transformational
approach stand out through their ability to inspire and motivate team members, nurture a
common vision and purpose, and create an environment that encourages creativity and
innovation. The results of the study reinforce the idea that leadership styles focusing on
inspiration and empowerment are pivotal in considerably enhancing the overall performance
of employees across multiple dimensions within the organizational structure (Chen et al.,
2018), (Qalati et al., 2022).
Further research supports the notion that impactful leadership styles are instrumental in
enhancing individual employee performance and sustaining elevated levels of talent and
overall organizational effectiveness. These results underscore the significance of
leadership in establishing an environment that fosters employee excellence, enabling them
to contribute their skills and capabilities to the fullest extent. Effective leadership not only
positively affects immediate performance but also plays a role in retaining talent,
contributing to the long-term success of the organization (Biloa, 2023).

In a practical business setting, these discoveries hold various implications. Firstly, leaders
within organizations should embody transformational qualities, fostering confidence in
employees for specific tasks and granting them decision-making authority following
adequate training. Secondly, leaders ought to actively champion employee development,
offering avenues for growth that can positively influence job satisfaction and facilitate career
progression. Thirdly, leaders should advocate for open communication and facilitate
dialogues that cultivate a transparent and inclusive work environment. Overall, these
findings underscore that leadership styles emphasizing inspiration and empowerment can

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elevate employee performance, thereby contributing to the overall success of the

organization (Khan et al., 2020).
The effect of leadership style on work motivation (mediation variable I)
The results of the hierarchical regression analysis show that the significance value of
leadership style on work motivation is 0.009 < (smaller than) 0.050 so that the hypothesis
which states that leadership style has a positive effect on work motivation is accepted. A
leadership style that encourages employees to go beyond personal desires by influencing
both internally and externally on these employees. Existing leadership styles provide more
opportunities for employees to be creative through autonomy. Providing more opportunities
for employees to be creative causes employees to be more able to create and develop
ideas that are beneficial to the interests of the agency, so that employees must make a
greater commitment to the institution, which makes employee performance increase
according to what is desired.
These results align with prior research, offering a holistic understanding of how a manager's
leadership style plays a pivotal role in shaping individual motivation and job satisfaction.
The influence on employees' working approaches is intricately linked to the manner in which
leadership is exhibited. Notably, transformational leadership, marked by inspiration and
empowerment, tends to cultivate a positive work environment, contributing to heightened
motivation and satisfaction among individuals. In contrast, autocratic or laissez-faire
leadership styles may result in frustration and diminished job satisfaction. This underscores
the significance of leadership behaviors in creating distinct workplace atmospheres that
directly impact the well-being and engagement of employees (Fiaz et al., 2017).
In practical business settings, the selected leadership approach significantly influences
workplace motivation, subsequently affecting the performance and overall productivity of
employees. Motivation plays a crucial role as it correlates with increased engagement,
commitment, and productivity among employees. Nevertheless, the effectiveness of a
leadership style varies, and there is no universally applicable method. It depends on factors
such as the specific goals of the organization, team dynamics, and the diverse personalities
of individuals involved. For example, a leadership style emphasizing inspiration and
empowerment, such as transformational leadership, may cultivate a positive and inventive
work atmosphere. Conversely, an autocratic style might be more effective in situations
where swift decision-making and clear guidance are paramount. Adapting leadership styles
to align with the distinctive characteristics of the business environment is integral to
fostering optimal employee motivation and, consequently, enhancing overall performance.
Transformational leadership stands out as a leadership style with a favourable impact on
the motivation of employees. This approach places a strong emphasis on recognizing and
fostering the capabilities of individuals, thereby contributing to an increased level of

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motivation among the workforce. Within the framework of transformational leadership,

leaders entrust their vision to followers and actively cultivate their skills, leading to a
reinforcement of the followers' commitment and enthusiasm for their tasks. Furthermore,
transformational leadership is characterized by the promotion of shared group goals, the
articulation of a compelling vision, the provision of intellectual stimulation, and serving as a
role model. These elements are all positively correlated with intrinsic motivation, creating
an environment that nurtures a sense of purpose, stimulates personal growth, and
establishes a shared vision aligned with the values of team members. In summary,
transformational leadership significantly contributes to enhancing intrinsic motivation in the
workplace (Qalati et al., 2022).
In contrast, transactional leadership functions by setting explicit work guidelines and
expectations for followers, typically incorporating a system of rewards and consequences
based on performance. This structured method has the potential to result in diminished
employee engagement, as it primarily centers on transactional interactions between leaders
and followers. Nevertheless, when merged with transformational leadership, which
underscores inspiration and empowerment, the two approaches can complement each
other effectively. The transactional components offer structure and consistency, while the
transformational elements play a role in motivating employees and cultivating a positive
work environment. This amalgamation has been shown to positively influence individual
employee performance and, subsequently, the financial outcomes of organizations. The
incorporation of both styles permits a well-rounded leadership strategy that addresses both
task-oriented and relationship-oriented facets, ultimately contributing to the overall success
of the organization (Chammas & Hernandez, 2019).
The influence of leadership style mediated by work motivation on employee
performance
The results of hierarchical regression analysis show a significant value between leadership
style mediated by work motivation on employee performance, where first the influence of
leadership style on employee performance after intervention by work motivation is 0.125 >
(greater than) 0.050. This fulfills the requirements as a mediating variable, after the
leadership style intervention on employee performance becomes insignificant, work
motivation is expressed as a mediator variable. The second effect of work motivation on
employee performance after intervention is 0.014 < (smaller than) 0.050. This fulfills the
requirements to state the motivation variable as a mediator variable where after the
intervention the influence of work motivation on employee performance still shows
significant results.

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Prior research supports the notion that the manner in which leaders approach their roles is
pivotal in shaping employee performance. The studies indicate a favorable correlation
between leadership styles and organizational commitments, highlighting job satisfaction as
a partial mediator in this relationship. Furthermore, the research delves into the effects of
both transformational and transactional leaders' behaviors on employees' emotional
outcomes, contributing to an enhanced comprehension of how a variety of leadership styles
can impact performance through the lens of work motivation. The findings underscore the
importance of leadership styles in influencing both work motivation and performance,
pinpointing intrinsic motivation as a mediator. Collectively, these studies offer extensive
evidence supporting the idea that leadership style significantly shapes employee
performance, often mediated by the influence of work motivation, aligning with the findings
presented (Oyewobi, 2022)
The effect of leadership style on work culture (mediation variable II)
The results of multilevel linear analysis (Hierarchical Regression) show that the significance
value of leadership style on work motivation is 0.196 > (greater than) 0.050. These results
reject the hypothesis which states that leadership style has no effect on work culture. Work
culture is one of the triggers for the emergence of a leadership style. The quality of the
leadership style is higher if the perception of each employee towards the existing work
culture is also getting better. The results of this study indicate that work culture in agencies
needs to be considered, namely agencies need to instill awareness that a work culture is
important for companies, which is something employees must do.
The established correlation among organizational culture, leadership behavior, and job
satisfaction significantly strengthens the presented conclusions. As highlighted in the study,
this correlation underscores a notable connection where organizational culture is intricately
associated with both leadership behavior and job satisfaction. According to the study, the
prevailing culture within an organization holds a substantial influence on how leaders
conduct themselves, consequently affecting the job satisfaction of employees. This
interconnection among leadership style, organizational culture, and job satisfaction
emphasizes the all-encompassing nature of organizational dynamics (Tsait, 2019).
The results highlight the intertwined influence of leadership style and work culture,
collaboratively shaping the organizational setting. Leaders, through their actions, emerge
as integral elements of the broader organizational culture, shaping employee satisfaction
and motivation. The study's insights suggest that organizations should consider both
leadership style and work culture holistically when aiming to improve employee satisfaction
and motivation. This comprehensive perspective acknowledges the combined significance

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of leadership behaviors and cultural elements, underscoring their joint impact on crafting a
positive and motivating organizational environment for employees.
The influence of leadership style mediated by work culture on employee performance
The results of the hierarchical regression analysis show the significance value between
leadership style mediated by work culture on employee performance, where first the
influence of leadership style on employee performance after intervention by work culture is
0.030 < (smaller than) 0.050. This does not qualify as a mediating variable, after the
intervention of leadership style on employee performance becomes significant, work culture
is declared not as a mediating variable. The second effect of work culture on employee
performance after intervention is 0.776 > (greater than) 0.050. This does not meet the
requirements for the work culture variable as a mediator variable where after the
intervention the influence of work culture on employee performance still shows insignificant
results.
The statement underscores that prior studies have revealed meaningful relationships
between distinct leadership styles, notably transformational leadership, and employee
performance. Transformational leadership is a leadership method focused on inspiring and
motivating followers to achieve outstanding performance and exceed their own
expectations. The current body of research suggests that leaders who adopt
transformational styles significantly contribute to improving employee performance. This
impact may result from elements like heightened motivation, enhanced job satisfaction, and
the cultivation of a positive work environment through a shared vision. In essence, earlier
research emphasizes the significance of leadership styles, particularly transformational
leadership, in molding and impacting employee performance in organizational contexts
(Qalati et al., 2022).
Earlier studies have explored the impact of organizational culture on employee
performance, finding that a favourable organizational culture typically results in enhanced
performance. However, the paragraph suggests a departure from this prevailing pattern in
the particular study under consideration. In this specific instance, the study reveals that
work culture does not serve as a mediating factor in the connection between leadership
style and employee performance. This implies that, according to the study's results, while a
positive organizational culture generally has a positive effect on employee performance, it
may not function as an intermediary element in the specific association between leadership
style and employee performance scrutinized in this particular research (Tsait, 2019).
In the context of company implementation, a strategy could involve a program designed to
enhance employee performance by directly modifying leadership styles, rather than relying
on adjustments to work culture as an intermediary step. For example, a company might

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initiate training programs specifically targeting managers to cultivate transformational

leadership skills, which have been demonstrated to positively influence employee
performance. This direct intervention aligns with the study's results indicating that work
culture does not act as a mediator in the relationship between leadership style and
employee performance. The implication is that alterations in leadership style could
potentially yield more immediate impacts on performance outcomes, supporting a targeted
and focused approach to improving employee performance within a company (Khan et al.,
2020).
Conclusion

The study provides valuable insights into the complex relationships among leadership style,
work motivation, work culture, and employee performance, emphasizing the positive impact
of transformational leadership and the mediating role of work motivation; for practical
applications, organizational leaders are urged to focus on fostering transformational
leadership qualities, intrinsic motivation, and a positive work culture to optimize employee
performance, with government initiatives recommended to support leadership development
programs and cultivate awareness of the importance of work culture.

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