INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE AFFECT TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT OF Influence Of Leadership To Satisfaction Of Employee Affect To The Performance Of Employee At Department Of Management Market Of Surakarta (Dinas Pe

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INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE AFFECT

TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT OF

MANAGEMENT MARKET OF SURAKARTA

(DINAS PENGELOLAAN PASAR PEMKOT SURAKARTA)

THESIS

Submitted as Partial Fulfillment of the Requirement for Getting Master of Management Graduate Program

Magister of Management

MUHAMMED AHMED A. P 100 130 018

MASTER OF MAGISTER MANAGEMENT

UNIVERSITY OF MUHAMMADIYAH SURAKARTA

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ii

APPROVAL

INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE AFFECT

TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT OF

MANAGEMENT MARKET OF SURAKARTA

Prepared and Compiled By:

MUHAMMED AHMED A. P 100 130 018

Approved and Enacted by the Supervisor I and Supervisor II Maintained front of the Board of Examiners for Thesis

Master of Human Research Management University of Muhammadiyah Surakarta

Supervisor I

Drs. M. Farid Wajdi, M.M Ph.D Date………

Supervisor II

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iii

NOTE OF SUPERVISOR

Drs. M. Farid Wajdi, M.M Ph.D Lecturer Graduate Program

Muhammadiyah University of Surakarta Office Note

Subject: Thesis of MUHAMMED AHMED A. Dear,

Chairman of the Master of Human Research Management Muhammadiyah University of Surakarta

Assalamualaikum Warahmatullahi Wabarakatuh

After reading, researching, reviewing, correcting and make repairs as needed to your thesis:

Name : MUHAMMED AHMED A.

NIM : P 100 130 018

Program : Master of Human Research Management

Title : INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE AFFECT TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT

OF MANAGEMENT MARKET OF SURAKARTA (DINAS

PENGELOLAAN PASAR PEMKOT SURAKARTA)

With this we assess the thesis can be approved for a thesis submitted in the trial exam on Masters of Human Research Management Muhammadiyah University of Surakarta.

Wasalamualaikum Warahmatullahi Wabarakatuh

Surakarta, 21st August 2014 Supervisor I,

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iv

NOTE OF SUPERVISOR

Drs. Anton Agus Setyawan, S.E Lecturer Master Program

Muhammadiyah University of Surakarta Office Note

Subject: Thesis of MUHAMMED AHMED A. Dear,

Chairman of the Master of Human Research Management Muhammadiyah University of Surakarta

Assalamualaikum Warahmatullahi Wabarakatuh

After reading, researching, reviewing, correcting and make repairs as needed to your thesis:

NIM : P 100 130 018

Program : Master of Human Research Management

With this we assess the thesis can be approved for a thesis submitted in the trial exam on Masters of Human Research Management Muhammadiyah University of Surakarta.

Wasalamualaikum Warahmatullahi Wabarakatuh

Surakarta, 21st August 2014 Supervisor II,

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v

ENDORSEMENT

INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE AFFECT

TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT OF

MANAGEMENT MARKET OF SURAKARTA

Prepared and compiled by MUHAMMED AHMED A.

P 100 130 018

On date,021st August 2014 And found to comply to accepted

Structure Board of Examiners Supervisor I,

Drs. M. Farid Wajdi, M.M Ph.D

Other members of the Board of Examiners

Supervisor II,

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vii

THESIS STATEMENT OF AUTHENTICITY

The writer, the following:

NIM : P 100 130 018

Program : Master of Human Research Management Concentration : Master of Human Research Management

Stating the fact that I submit this thesis is really a result of my own work, except for quotations and summaries that I have explained the source. If in the future this thesis is the result of plagiarism, the title given by the Muhammadiyah University of Surakarta canceled I received.

Surakarta, 21st August 2014 Who makes a statement,

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viii

MOTTO

use friendliness but do not use your friends Frank Crane

You do not always live in peace and harmony A o y

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ix

DEDICATION

Each of the ideas contained in this paper sheets are part of Allah Subhanahu wa Ta'ala guidance to the author and to the lord of the Prophet Mohammad

Shallallaahu Alaihiwasalla . The writer dedicate this paper to:

1. Beloved father and mother as well as my extended family, thank you for your compassion and sacrifice.

2. Friends who have always encourage me, so the writer can complete the study so far.

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x

ACKNOWLEDGEMENT

ASSALAMUALAIKUM WR.WB

Alhamdulillahirrabilalamin, Praise is to Allah Subhanahu wa Ta'ala, the Lord

of Universe, for blessing and guiding the research paper as a partial fulfillment of the requirement for getting Master of Management Graduate Program Magister of Management, University of Muhammadiyah Surakarta.

The researcher is fully aware that people s help a d guida ce. Therefore, i this opportunity, she would like to express her gratitude and appreciation to: 1. Prof. Dr. Khudzaifah Dimyati, SH, M. Hum, as the Director of the Graduate

Program of University of Muhammadiyah Surakarta.

2. Drs. M. Farid Wajdi, M.M Ph.D as a supervisor had of Magister Managemen and also as a lecturer Graduate University of Muhammadiyah Surakarta who has provided guidance and input with full sincerity to spend time in charting the preparation of this thesis.

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xi

4. To all leaders and employees of the Graduate library and the central library of University Muhammadiyah of Surakarta who helped provide the opportunity and preparation of the references in this thesis.

5. A big thank you I do not forget to give to my beloved parents who have provided support, prayers, and give motivation to complete this study. 6. For my friends who give me support and encouragement to complete this

thesis, thank you very much.

7. Of course in introductory sheet is not enough this time I mention one by one, but for services and help all those I say thank you.

The writer realizes that this research paper is far from being perfect because of her limited capability. Thus, revision, suggestion, and criticism are welcomed for the perfection of this work. The writer wishes this research paper would be useful and helpful to readers.

WASSALAMU’ALAIKUM WR. WB.

Surakarta, 21st August 2014 Writer,

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xii

ABSTRACT

INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE AFFECT

TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT OF

MANAGEMENT MARKET OF SURAKARTA

The purpose of this study is to analyze the influences of leadership to satisfaction of employee at Department of Management Market of Surakarta, to analyze influence leadership to satisfaction of employee effect to the performance of employee at Department of Management Market of Surakarta, and to analyze the positive influences of leadership directly through the performance of employee at Department of Management Market of Surakarta (DINAS Pengelolaan Pasar PEMKOT Surakarta). Research conducted a descriptive study using a quantitative approach, by taking samples at Department of Management Market of Surakarta (DINAS Pengelolaan Pasar PEMKOT Surakarta), Central Java, Indonesia. The study population was all employees and staff of the Department of Management Market of Surakarta and samples taken by 50 employees. The technique of collecting data using questionnaires. The data analysis technique used is path analysis. The results obtained showed that: Leadership will influence on satisfaction of employee at Department of Management Market of Surakarta, satisfaction of employees affects the employee's performance of employees at Department of Management Market of Surakarta, and leadership influence on performance of employee indirectly through satisfaction of employees at Department of Management Market of Surakarta (DINAS Pengelolaan Pasar PEMKOT Surakarta).

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THESIS STATEMENT OF AUTHENTICITY ... vi

MOTTO ... vii

CHAPTER I INTRODUCTION A. Background of the Study ... 1

CHAPTER II LITERATURE REVIEW A. Theoretical Basis ... 6

1. Dependent Variable (Performance of Employee) ... 6

a. Definition of Performance ... 6

b. Factors that Influence Performance of Employee ... 7

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2. Intervening Variable (Satisfaction) ... 9

a. Definition of Satisfaction ... 9

b. Factors that Influence Satisfaction of Employees ... 10

c. Measurements of Satisfaction of Employee ... 11

3. Independent Variable (Leadership) ... 11

a. Definition of Leadership ... 11

b. Factors that influence Leadership ... 12

c. Measurements of Leadership ... 13

B. Previous Research ... 14

C. Conceptual Framework ... 15

D. Hypothesis ... 17

CHAPTER III RESEARCH METHODS A. Research Method ... 18

B. Object Determination Methods Research ... 19

1. Population, Sample and Sampling ... 19

a. Population ... 19

b. Sample ... 19

c. Sampling ... 20

2. Data Collection Procedures ... 20

C. Research Instruments ... 21

1. Instrument ... 21

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a. Validity Test ... 21

b. Reliability Test ... 21

D. Techniques Analysis of Data ... 22

1. Classical Test Assumptions ... 22

a. Normality Test ... 22

b. Partial Test ... 22

2. Path Analysis ... 23

a. Formulate hypotheses and structural equation ... 23

b. Path coefficient diagram form ... 23

c. Equation path coefficients ... 24

d. Individually testing [(X to Y) and (I to Y)] ... 24

e. Testing the indirect influence ... 25

f. Summarize and conclude ... 25

CHAPTER IV DATA ANALYSIS AND DISCUSSION A. Test of Instrument Data ... 26

1. Validity Test of Leadership Questionnaire ... 26

2. Validity Test of Satisfaction of Employee Questionnaire ... 28

3. Validity Test of Questionnaire Employee of Performance ... 28

C. Classical Test Assumptions ... 38

1. Normality Test ... 39

2. Partial Correlation Test ... 39

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1. Formulating Hypotheses and Structural Equation ... 40

a. Path Analysis Model-1 ... 40

b. Path Analysis Model-2 ... 42

2. Figure of Coefficient Diagram Line ... 43

3. Calculating Coefficient Line ... 43

4. Testing of Path Coefficients In Individuals ... 44

a. Hypothesis Testing I (t test) ... 45

b. Hypothesis Testing II (t test) ... 46

5. Calculating of Coefficient Line ... 48

E. Discussion of Data Analysis ... 51

CHAPTER V CONCLUSIONS AND SUGGESTION A. Conclusion ... 55

B. Implication ... 55

C. Suggestion ... 56

1. For Leaders ... 56

2. For Employees or Staffs ... 56

3. For Further Researchers ... 57

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TABLE OF APPENDIXES

Appendix 1 Research Questionnaire ... 61

Appendix 2 Score of Result Instrument Test ... 68

Appendix 3 Validity Test of Leadership Questionnaire ... 71

Appendix 4 Reliability Test of Leadership Questionnaire ... 73

Appendix 5 Validity Test of Satisfaction Employee Questionnaire ... 74

Appendix 6 Reliability Test of Satisfaction Employee Questionnaire ... 75

Appendix 7 Validity Test of Employee Performance Questionnaire ... 76

Appendix 8 Reliability Test of Employee Performance Questionnaire ... 78

Appendix 9 Research Data ... 79

Appendix 10 Description of Data ... 85

Appendix 11 Normality Test ... 90

Appendix 12 Partial Correlation Test ... 91

Appendix 13 OUT PUT CORRELATION Model-1 ... 92

Appendix 14 OUT PUT REGRESSION Model-1 (X to I effect Y) ... 93

Appendix 15 OUT PUT REGRESSION Model-2 (X to I) ... 94

Appendix 16 Relative and Effective Contribution ... 95

Appendix 17 Table r Product Moment ... 98

Appendix 18 Table t ... 99

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TABLE

Table 4.1 Summary of Test Validity Leadership Questionnaire ... 27

Table 4.2 Summary of Test Validity Questionnaire Satisfaction of Employee ... 28

Table 4.3 Summary of Test Validity Questionnaire Employee of Performance ... 29

Table 4.4 Leadership Distribution ... 32

Table 4.5 Satisfaction Employee Distribution ... 34

Table 4.6 Employee of Performance Distribution ... 37

Table 4.7 Normality Test Results Summary ... 39

Table 4.8 Partial Correlation Test Results Summary ... 40

Table 4.9 Summary of Test Results of Path Analysis ... 41

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TABLE OF FIGURE

Figure 2.1 Conceptual Framework ... 16 Figure 3.1 Diagram Coefficient Line ... 23 Figure 4.1 Frequency Distribution Graphs Leaderships at Department

of Management Market of Surakarta ... 33 Figure 4.2 Frequency Distribution Graphs Satisfaction Employee at

Department of Management Market of Surakarta ... 35 Figure 4.3 Frequency Distribution Graphs Satisfaction employee at

Department of Management Market of Surakarta ... 38 Figure 4.4 Coefficient Diagram Line ... 43 Figure 4.5 Graphic t-test statistic leadership influence on satisfaction

employee ... 46 Figure 4.6 Graphic t-test statistic the influence of satisfaction