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Servant Leadership's Impact on Employee Performance

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27 views9 pages

Servant Leadership's Impact on Employee Performance

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abrdesalegn
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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Advances in Social Science, Education and Humanities Research, volume 529

Proceedings of the International Conference on Engineering, Technology


and Social Science (ICONETOS 2020)

Servant Leadership and Performance Employee: The


Mediating Effect of Organizational Commitment
Marisi Pakpahan1,*, Hardianawati1, Suwarlan1
1
Institut Bisnis dan Multimedia asmi, Jakarta, Indonesia
Corresponding author. Email: [Link]@[Link]
*

ABSTRACT
Purpose – The leadership process is one of the important factors in directing employees to have good performance. This
study focuses on the discussion of the antecedents of servant leadership variables with their influence on employee
performance with organizational commitment in the workplace as a mediator. Design/methodology/approach – This
research is a survey research conducted on alumni of the secretarial study program at IBM ASMI. The unit of analysis
is an individual. The population consists of 170 alumni who graduated from 2019 to the past 5 years. The sample used
was 123 respondents, namely 72% of the total population. The questionnaire was designed using a 5 Likert scale. Data
is collected online using google form in the form of a link and sharing it through social media, namely, facebook for
study programs, istagram, and whatsapp alumni groups. The results of the study were explained by descriptive and
verification. Verification analysis was carried out using the Structural Equation Modeling (SEM) approach with the help
of the Lisrel 8.8 statistical tool Findings – The results showed that there was no significant influence between servant
leadership and organizational commitment, but there were positive results and had a significant impact on employee
performance. Organizational commitment has a positive and significant effect on employee performance and when
servant leadership is mediated by organizational commitment the results show a positive and significant effect on
employee performance. Originality/value – The results of this study add to the limitations of the literature and provide
empirical evidence of relationship between serving leadership, organizational commitment and employee performance.
the results of previous studies that have been reviewed by researchers prove that serving leadership has a significance
to organizational commitment, but in this study it is not in line with these studies. This research provides a different
contribution from the previous one.

Keywords: Servant leadership, organizational commitment, employee performance

1. INTRODUCTION various companies. With a curriculum designed,


graduates are expected to quickly adapt to the corporate
Vocational education is an educational institution that environment through an internship program for each
emphasizes the practical skills needed to directly enter student. Thus, the company does not need to have a lot of
the world of work. Graduates of the secretarial study time to provide supplies for them. It is hoped that with
program whose names are now adjusted to the the skills they have, they will be able to work well as a
nomenclature set by the government to become office leadership secretary and administrative staff, so that the
administration in accordance with Kepmenristekdikti No. leadership is helped by the work of secretaries /
57 of 2019 concerning the name of study programs in employees and can increase their commitment to the
tertiary institutions is expected to be absorbed directly in company.
the business and industrial world. Vocational graduates
of the office administration (secretarial) study program Numerous studies have been conducted to investigate
ASMI Multiedia and Business Institute (IBM ASMI) the different features of servant leadership that are
have been equipped with skills that are ready to work employed specifically in education. The results show that
according to company needs. there is a positive influence from the principal through
leadership serving in higher education and there is
According to the results of tracer studies conducted, teacher confidence in leadership [1].
the average secretarial study program alumni are
absorbed in various business worlds with a waiting Servant leadership is defined by the qualities of being
period of approximately three months. Graduates are a good listener, having self-awareness, empathy and
assisted by work placement units to channel them to management, which enables leaders to understand the

Copyright © 2021 The Authors. Published by Atlantis Press SARL.


This is an open access article distributed under the CC BY-NC 4.0 license -[Link] 884
Advances in Social Science, Education and Humanities Research, volume 529

needs of employees and optimize their potential, while at values and goals, and intends to maintain its membership.
the same time adapting employee aspirations to A high level of organizational commitment means siding
organizational needs and goals. Servicing leaders place with the organization that recruits the employee [11].
employees at the center of their attention and strive to
attend to their needs while doing their best to foster Organizational commitment is a strong desire to
employee development with adequate support and remain a member of a particular organization, the desire
resources [2]. Socially, good work performance can to strive in accordance with the wishes of the
increase empowerment and welfare for those around organization and certain beliefs about acceptance of the
them [3]. Servant Leadership Model at JW Marriott goals and values of the organization. It can be interpreted
Surabaya, namely voluntary subordination, transforming that organizational commitment is a person's attitude that
influence, responsible morality, authentic self, shows loyalty to an organization and the process by
transcendent spirituality, covenant relationship, service
which a person expresses his concern for the organization
administrator, empathy, awareness, listening, listening,
[12].
community building, healing, commitment to people's
growth, persuasion, conceptualization, and foresight [4].
2.3. Employee Performance
Employee organizational commitment will shape the best
performance of Pelabuhan Indonesia III employees. Employee performance can be defined as job
Good work performance is required by middle level performance which is the ratio between significant work
employees at Pelabuhan Indonesia III, who are required
and employee standards. Employee Performance is what
for regulation, policy and information of all jobs from top
employees do or don't do. From these two concepts it can
managers to junior managers [5].
be synthesized that Employee performance is the ability
of employees multiplied by effort and support.
2. LITERATURE REVIEW
Bernardin and Russel stated for measuring the
2.1. Servant Leadership performance or work results of an employee, a list of
Servant leadership begin with a natural feeling that questions is used which contains several dimensions of
someone wants to serve first, then the choice leads work results or performance. Performance needs to be
someone to aspire to lead. Whether the first is to be a measured by the leadership so that it can be known to
leader first or to serve first, this shows two extreme types what extent the performance development of an
that are part of the diversity of human nature [6]. Servant employee in particular and the organization in general.
leadership is a leadership style that focuses on employees Bernandin and Russell define performance as
rather than organizational results whose main purpose is "... the record of outcomes produced on a specified
to serve followers [7]. Many benefits of servant job fuction or activity during a specified time period",
leadership, practitioners must be prepared to put forth (records of outcomes resulting from the function of a
extraordinary efforts in developing a culture of servant particular job or activity over a period of time) certain.
leadership, starting with themselves as role models [8].
Mathis & Jackson defines that employee performance
Building servant leadership requires a combination of is what affects how much workers contribute to the
conscientious and socially motivated people combined company which includes the quantity of output, quality
with servant leadership training [8]. It is necessary to of output, attendance at work and cooperative attitudes.
confirm the relationship between the attributive values of Of course, the performance shown by an employee is
serving leadership to employee commitment, where the influenced by various factors, including work motivation
results of serving leadership have a direct impact on and work environment.
commitment [9]. In order for leaders who serve to focus
on employee development, they should meet the three The relationship between each variable represented in
basic psychological needs of employees, namely, Figure 1. The model shows three research constructs,
autonomy, competence and relationship. It also shows namely servant leadership as a predictor, organizational
how satisfaction of each need has unique predictive commitment as mediation and secretary performance as
power because the three forms of need satisfaction are a result. There are four hypotheses observed which are
combined in different ways to elicit attitudes and shown in the conceptual model as well as the hypothesis
behaviour that predict individual employee task developed.
performance [10].

2.2. Organizational Commitment


3. METHOD AND MEASUREMENT
Organizational commitment is a component of
behavior. Organizational commitment is a condition in This research uses a quantitative approach through a
which an employee sides with an organization and its survey conducted on alumni of the ASMI Business and

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Advances in Social Science, Education and Humanities Research, volume 529

Multimedia Institute (IBM ASMI) secretarial study 4. FORMULATION HYPOTHESIS


program with a graduation year of 5 years back since
2019. This type of research is correlational research. It is necessary to confirm the relationship between the
Correlational research is a type of nonexperimental attributive values of serving leadership to employee
research in which the researcher measures two variables commitment, where the results of serving leadership have
and assesses the relationship between the variables with a direct impact on commitment [9]. A potential
little or no effort to control for extraneous variables. contribution lies in that this study confirms the mediating
role of leader commitment and organizational
The population is 170 alumni who have graduated in commitment on the relationship between servant
the past 5 years since graduating in 2019. The variables leadership and participatory behavior in the context of the
in this study are classified into exogenous and Korean Catholic church. Based on structural equation
endogenous variables. Serving leadership variable (X) is modeling, a linear relationship was found from servant
an exogenous variable, employee performance (Z) is an leadership to leader commitment, to organizational
endogenous variable. Organizational commitment (Y) is commitment, and finally to member participatory
an endogenous variable intervention. Servant leadership behavior [13].
measurement uses a scale from Barbuto & Wheeler with
five dimensions, namely, Altruistic Calling, Emotional H1: There is a servant leadership influence on
Healing, Wisdom, Persuasive Mapping, Organizational organizational commitment
Stewardship. To measure organizational commitment
When leaders care about employees, it will give them
using a questionnaire Mowday, Steers, Porter with 15
the opportunity to develop themselves, get information,
statement items. This questionnaire was also used by [5].
and ultimately trust them so that employees will complete
To measure employee performance using Bernandin and
their tasks on time [14]. The concept of servant
Russell with indicators of Quality, Quantity, Timeliness,
leadership comes primarily from the experience of
Cost effectiveness, Need for supervision, Interpersonal
Robert K. Greenleaf in the management of the teachings
impact. These three variables are measured by a value on
of Jesus. The resulting servant leadership model is
a 5-point Likert scale ranging from 1 (strongly disagree)
characterized by a service orientation, a holistic outlook,
2 (disagree) 3 (neutral) 4 (agree) 5 (strongly agree).
and a moral spiritual emphasis, thereby expanding
Data was collected through a questionnaire using current models of servant leadership and existing work
google form, links were sent directly to respondents via on contemporary leadership approaches [15].
the study program Facebook, Instagram, and the alumni
The results showed that servant leadership has a direct
group WhatsApp. Data were analyzed using the
influence on POS and performance, but only indirectly
Structural Equation Modeling (SEM) approach with the
related to turnover intention and turnover through POS
help of Lisrel 8.8 statistical software. The research results
and performance [16]. Servicing leadership of sales
were explained descriptively and verificatively.
managers is directly and positively related to the
3.1. Conceptual Framework performance of members of the sales staff organization
[17].
Further, according to the strong relationship from
theoretical and empiric study from the variables that H2: There is a servant leadership influence on
become the focus of this study, so that conceptual employee performance
framework in this study has showed in Fig. 1. Organizational commitment has a significant impact
on employee performance in the workplace.
Commitment can increase or hinder an employee's
willingness to do the job, because it affects their
productivity and quality of work. However, the
relationship between the two is more complicated than
the direct one: it is affected by job satisfaction. Therefore,
organizations need to increase employee commitment to
increase their job satisfaction and performance [18].

Organizational commitment affects job performance.


This shows that if organizational commitment includes a
strong belief and acceptance of the organization's values
Figure 1. Conceptual Framework
and goals for the better, then the employee's job is
characterized by skills, effort and the nature of working
conditions that will be better [19].

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H3: There is an influence of organizational Table 1. Explains demographic statistics for 123
commitment on employee performance respondents. Respondents who participated in this study
were alumni of the Secretariat study program of the
Servant leadership, and organizational commitment ASMI Business and Multimedia Institute (IBM ASMI)
have a constructive effect on the job performance of domiciled in DKI Jakarta. All respondents are female,
employees of Small and Medium Enterprises (SMEs) in with the latest diploma three education. Data were
Zimbabwe, there is a positive and significant relationship collected for 3 days, from 14-16 July 2020. The majority
[20]. of respondents aged 21-25 years were 58.1% of the total
H4: There is a servant leadership influence on respondents, with a predominantly working period of
employee performance through organizational under 5 years at 86%. Meanwhile, the majority of the
commitment respondents' types of institutions/organizations work in
private companies, 93.50% of the remaining work as civil
servants (PNS) and employees of state-owned enterprises
(BUMN). The majority of institutions / companies
5. FINDINGS domicile 93.49% are located in DKI Jakarta, the rest are
domiciled in West Java, Banten, and other places.
5.1. Description of Respondent

Table 1. Characteristic of Respondents

5.2. Descriptive statistics Although the three variables are in the high category, the
employee performance variable is the variable with the
Descriptive assessment of each variable in this study, lowest score among other variables. This means that there
using an average score categorized into 5 interval scales. are still many employees who are less committed to the
Data Table 2 shows the value of each variable as follows: company. Nearly 70% of employees feel that they are not
(1) Descriptive statistical results for the average score of working for the company they expected. This can be seen
employee servant leadership variables (X) is high (3.19 from the very high number of alumni who are absorbed
from a scale of 5) with a standard deviation score of 0.47. in private companies. t could be that the company is
(2) The variable organizational commitment (Y) shows categorized as a middle to lower scale company, so there
that the average score is also high (3.72 from a scale of is a sense of not being proud of being an employee at the
5), with a standard deviation score of 0.57. (3) company. Unfortunately, the researchers did not examine
Meanwhile the results of the employee performance more in the category of company scale where the alumni
variable (Z) show that the average score is high (4.00 out worked.
of a scale of 5) with a standard deviation score of 0.30.

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Table 2. Descriptive statistics and category scoring based on a scale

5.3. Validity 5.5. Structural Model Analysis


Validity testing is used to measure whether the Before testing the structural model, the model in the
questionnaire is valid or not, "valid" means "good" [21]. study must be tested for its goodness of fit index first
So that validity aims to measure what should be [21]. Based on the results of the model fit test shown in
measured. The validity test in this study (see table 3) is Figure 2, with the value of Degrees of Freedom = 296,
known through the results of loading factors from a Minimum Fit Function Chi-Square = 839.81 (P = 0.0),
number of indicators showing the values of Emotional Normal Theory Weighted Least Squares Chi-Square =
789.99 (P = 0.0) it can be concluded that the model built
Healing, Emotional Healing, Wisdom, Persuasive
in this study is "The Fit is Perfect". Furthermore,
Mapping, Organizational Stewardship, respectively 0.58,
structural model testing is carried out to examine the
0.58, 0.76 and 0.50. relationship between exogenous latent variables and
Meanwhile, the Altruistic Calling indicator is endogenous latent variables. The results of this test can
prove whether the hypothesis built on the theoretical
discarded because it is invalid. The scores for the
conceptual framework is accepted or rejected. The results
indicator affective commitment, continuance
of hypothesis testing in this study are shown in Table 4).
commitment and normative commitment are 0.65, 0.76,
0.65, respectively. As for the indicators of Quality,
Quantity, Timeliness, Cost effectiveness, Need for
supervision, Interpersonal impact, each obtained scores
of 0.63, 0.66, 0.69, 0.54, 0.70, and 0.69. These results
indicate that from the loading factor analysis, it can be
interpreted that all indicators are greater than the critical
value. This means that the value measuring their latent
variable is higher than the load factor of other latent
variables. It can be identified that these indicators are
good at measuring their latent variables [21]. Based on
Table 2, it shows that the score of the square root AVE
of each latent variable is actually greater than the
correlation with other variables.

5.4. Reliability
Figure 2. Hybrid Research Model
Reliability testing in this study (see table 3), using
Construct Reliability and Average Variance Extracted
measurements [21]. The results show that the variables
(Servant Leadership; 0.78 and 0.50), (Organizational
Commitment; 0.90 and 0.50), and (Employee
Performance; 0.95 and 0.50). This means that all
variables have composite reliability at the Construct
Reliability and Average Variance Extracted values that
have met the large rule of thumb of 0.70 and 0.5 [21].

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Table 3. Validity and Reliability instrumens test result significant effect of servant leadership (SL) on
Organizational Commitment (OC) is rejected.
The second hypothesis shows that the path coefficient
score of the Organizational Commitment (OC) variable
on employee performance (EP) is 3.10, which is greater
than the t-critical value of 1.64. This means that at the
confidence level of 95% and α = 5%, Ho is rejected and
H2 is accepted, it can be concluded that the coefficient of
direct effect of SL on EP is significant with a coefficient
of determination of R2 of 0.39. Thus, the second
hypothesis which states that there is a positive and
significant effect of servant leadership (SL) on employee
performance (EP) can be accepted.
The third hypothesis shows that the path coefficient
score of the organizational commitment (OC) variable on
employee performance (EP) is 4.40. is greater than the t-
critical value of 1.64. This means that at the confidence
level of 95% and α = 5%, Ho is rejected and H3 is
accepted, it can be concluded that the coefficient of direct
influence of OC on EP is significant with the coefficient
of termination R2 of 0.12. Thus, the third hypothesis
which states that there is a positive and significant
influence on organizational commitment (OC) on
5.6. Hypothesis Test employee performance (EP) is accepted.

In this study, there are 4 hypotheses (see Table 4). The The fourth hypothesis shows that the Z value of the
hypothesis was tested by statistical t-test provided that path coefficient score is calculated using the “sobel test”
Ho was rejected if the t-value was greater than the critical formula, so the effect of the servant leadership (SL)
t value or the Z score was 1.64 (one tail test) for α = 0.05. variable on employee performance (EP) through
Study 1 tested the direct effect on hypothesis 1,2,3. Study Organizational commitment (OC) is 1.65 greater than the
2 tests the indirect effect on hypothesis 4. To test the t-critical value of 1.64. This means that at the confidence
significance of the indirect effect partially (Testing the level of 95% and α = 5%, Ho is rejected and H4 is
mediation hypothesis), the Sobel test procedure was accepted, it can be concluded that the coefficient of
carried out [22]. The sobel test is done by testing the indirect effect of SL on EP through OC is significant with
strength of the indirect effect of the independent variable the coefficient of termination R2 of 0.15. Thus, the fourth
(X) on the dependent variable (Z) through the variable hypothesis which states that there is a positive and
(Y). The indirect effect of X to Z through Y is calculated significant direct influence of servant leadership (SL) on
by multiplying the path X → Y (a) by the path Y → Z (b) employee performance (EP) through organizational (OC)
or ab. So the coefficient ab = (c - c'), where c is the effect can be accepted.
of X on Z without controlling Y, while c' is the coefficient
of influence of X on Z after controlling for Y. The
standard error of coefficients a and b is written as Sa and Table 4. Hypothesis test result
Sb, the magnitude of theeffect is not direct (indirect
effect). Sab is calculated by the following formula:

The results of structural model testing using SEM-


Lisrel are shown in Table 4. The first hypothesis shows
that the servant leadership (SL) variable path coefficient
score on organizational commitment (OC) is 1.03 smaller
than the t-critical value of 1.64. This means that at the
confidence level of 95% and α = 5%, Ho is accepted and
H1 is rejected, it can be concluded that the coefficient of
direct effect of SL on OC is not significant with the
coefficient of determination R2 of 0.012. Thus, the first
hypothesis which states that there is a positive and

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Table 5. Sobel Test Result performance, further stated variables such as altruism,
politeness, civil virtue, conscience, sportsmanship, and
employee performance can be explained by five
independent variables of servant leadership [14]. The
care, assistance and ability of leaders in influencing that
provided by the leadership for the work of employees can
improve their performance. Employee cooperation with
leaders and with other employees is also part of
improving their performance also. Both alumni as
6. DISCUSSION employees who work in the government and private
sectors able to improve their performance when leaders
6.1. The influence of Servant leadership on provide assistance in the form of influence as leaders.
organizational commitment (H1)
Empirically, the results of this study indicate that
there is no influence between servant leadership on
6.3. The influence of organizational
organizational commitment. This research contradicts the commitment on employee performance (H3)
study conducted [23] who concluded that servant
This empirical study of the relationship of
leadership has a strong influence on employee organizational commitment and employee performance
commitment. The study result [9] where the results of his is proven to support the results of the study conducted
research prove that serving leadership has a direct impact [24] that the need for strong organizational commitment
on employee performance. Conceptually it expands the is a determining factor for success in achieving higher
understanding of servant leadership actions as a performance. Research conducted [19] also confirmed a
reflective construct. Leadership behavior that serves the positive relationship between performance and
leader and subordinates will encourage employee commitment to effective, normative commitment. Based
organizational commitment. Leaders care for employees on the response from the statement, as the choice of place
in addition to making employees loyal to the to work, alumni who act as employees in the company,
organization; will make employees continue to strive to make a lot of effort and care about the fate of the
provide the best results from their efforts to increase company, thus this is evidence of improving their
performance.
organizational success [2]. However, this concept does
not apply to this research, because the opinion of alumni
as employees who work in companies is that the
leadership generally does not provide a constructive 6.4 The Effect of Servant Leadership on
attitude. The results showed that almost 70% of alumni Employee Performance is mediated by
as employees are absorbed in companies with medium to Organizational Commitment (H4)
lower scale. From the demographics of respondents, it
shows that 93% of alumni work in private companies, Empirically this study supports the influence of
which could be the majority of small companies (not yet servant leadership on employee performance through
proven because of the shallowness of the research) so that organizational commitment, although the findings do not
the service leadership process is not implemented which support service leadership and organizational
commitment is not significant. Several studies have been
can result in employees working according to what they
conducted on the success of servant leadership has been
know.
achieved in non-profit companies. Setyaningrum
describes the relationship between servant leadership and
organizational commitment, and employee performance.
6.2. The effect of Servant leadership on The results of this study indicate that servant leadership
has relevance to organizational commitment and
employee performance (H2) employee performance [25]. Other than that, the findings
The results of this study support empirical testing that shown that sales manager servant leadership is directly
and positively related to the performance of sales staff
shows the relationship between servant leadership and
organizational members [17]. In addition, servant
employee performance by [10]. It is evident that how leadership is indirectly related to the performance of sales
leaders who serve primarily with a focus on the growth members through organizational commitment felt by
and well-being of followers can influence improving salespeople.
individual performance in the workplace. According to
the results of the correlation analysis, there is a
significant level of positive correlation between the
dimensions of servant leadership, the level of employee

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