By
Muhamad Zhafran Dana Caesario 13112072
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION
FACULTY OF BUSINESS ADMINISTRATION & HUMANITIES
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
August 2016
Muhamad Zhafran Dana Caesario I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Muhamad Zhafran Dana Caesario
____________________________________________
Student Date
Approved by:
Ir. Muhril Ardiansyah, M.Sc., Ph.D.
____________________________________________
Thesis Advisor Date
Dr. rer. net. Linus Pasasa
____________________________________________
Thesis Co-Advisor Date
Eric Jos Nasution, MBA, MA, Ph.D
____________________________________________
Dean Date
Muhamad Zhafran Dana Caesario ABSTRACT
ANALYSIS THE IMPACT OF LEADER’S SKILL ON EMPLOYEE JOB PERFORMANCE:
A CASE STUDY OF PT. GRAHA ASA PRADANA IN BENGKULU
By
Muhamad Zhafran Dana Caesario Ir. Muhril Ardiansyah, M.Sc., Ph.D., Advisor
Dr. rer. net. Linus Pasasa, Co-Advisor
SWISS GERMAN UNIVERISTY
In this global era, most of companies are always trying to be better and improve work performance so that desired future goals can be achieved. One important aspect is to have a leader who is not only able to lead and give orders in a company but are also able to influence the employees to work together and achieve the goals.
Some theories from various studies indicated that employee job performance can be influenced by several factor and one of the factor is leader’s skill on leadership style.
The purpose of this study is to investigate the leadership style that currently applied in the company and investigate the significance relationship between leader’s skill on employee job performance. The research was conducted at PT. Graha Asa Pradana in Bengkulu. Primary data was obtained from all the employees in staff level through questionnaires distribution. SPSS statistical software was used for data analysis by using linear regression. The findings showed that democratic leadership has currently applied in the company and not all the implemented skills could significantly affect employee job performance. However, some skills which are coach, builder and dreamer are individually affecting employee job performance.
Keywords: Leader’s skill, employee job performance, Leadership, SPSS.
Muhamad Zhafran Dana Caesario
© Copyright 2016
by Muhamad Zhafran Dana Caesario All rights reserved
Muhamad Zhafran Dana Caesario DEDICATION
I dedicate this thesis to my beloved parents: Muhammad Daud, S.E., M.M. and Puspa Wartika Sariana. And my brother Vickry Yudian Pradana, S.E., S.T., M.M. who always guide and support me during this thesis work and always pray for me. I also dedicate this thesis to my advisor, Ir. Muhril Ardiansyah, M.Sc., Ph.D. who always guide me during my thesis work. Many Thanks also to Dr. rer. net. Linus Pasasa as my co-advisor who also guide me during this thesis work.
Muhamad Zhafran Dana Caesario ACKNOWLEDGEMENTS
First, I would like to praise Allah SWT for His blessing, health and also giving me the opportunity to complete this thesis work.
I would like to express the deepest gratitude to my advisor, Mr. Ir. Muhril Ardiansyah, M.Sc., Ph.D for supporting and guiding me during this thesis work from the beginning until the completion of this thesis. And I wish to thank my advisor for his valuable advice and knowledge and many intuitive discussions. And thank you for the patience to guide me during my thesis work and always guiding me whenever I found some trouble spot or had a question about my thesis.
I wish to thank my co-advisor, Mr. Dr. rer. net. Linus Pasasa who given me many intuitive knowledge, valuable guidance and suggestions. Thank you for many insightful discussions especially in research methodology.
I would like to express my deepest gratitude to my parents and my brother for the support, pray, love and guidance. Thank you for always being with me in every situation, and always make me calm in ups and downs and help me a lot with many suggestion during this thesis work. It was such a precious moment with you all, and I know I could not have done this thesis without your support.
I would like to show my reverence and deepest gratitude to PT. Graha Asa Pradana and all employee especially Mr. Tarmizi as a Operations Manager in Bengkulu area, who allow me to conduct my research in the company and I wish to thank Mrs. Yati and her team for helping me in distributing the questionnaire.
I would also like to express many thanks to all my friends in Swiss German University, especially all my IB friends, Ajie, Amir, Arya, Jo, Atria, Putri, Gerry, Arief, Laksmi, Kaesar, Joseph, Irsyad, Leonard, Michelle, Akbar, Naka and Revino, thank you for this amazing 3 years, it was such a unforgettable experience to meeting you all.
Muhamad Zhafran Dana Caesario together with me; Irsyad, Revino and Naka for always support each other, sharing ideas and advice during thesis works.
And I would like to thanks to all IBA lectures: Mr. Rachman Sjarief, Mr. Fiter Abadi, Mr. Junaidi Sinaga, etc. and administrative staff for supporting me during my college life.
Hence, I thank to all other parties who support me in the completion of this thesis.
Muhamad Zhafran Dana Caesario TABLE OF CONTENTS
Page
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 8
LIST OF FIGURES ... 11
LIST OF TABLES ... 12
CHAPTER 1 – INTRODUCTION ... 13
1.1 Background ... 13
1.2 Research Problems ... 17
1.3 Research Objectives ... 18
1.4 Research Questions ... 18
1.5 Scope and Limitation ... 18
1.6 Significance of Study ... 18
1.7 Thesis Structure ... 19
CHAPTER 2 - LITERATURE REVIEW ... 21
2.1. Framework of Thinking ... 21
2.2. Leadership ... 22
2.2.1. Definition of Leadership ... 23
2.2.2. Leadership Style ... 25
2.2.3. Autocratic Leadership Style, Democratic Leadership Style, Laissez-faire Leadership Style. ... 26
2.2.4. Autocratic Leadership Style ... 27
2.2.5 Democratic Leadership Style ... 31
2.2.6. Laissez-Faire Leadership Style ... 36
2.3. Leader’s Skill ... 40
2.4. Employee Job Performance ... 41
2.5. Previous Study ... 45
2.5.1. Worker Productivity, Leadership Style Relationship (Anbazhagan and Kotur, 2014) ... 45
2.5.2. The Moderating role of power distance on the relationship between leadership styles and employee job performance on public health care sector of Pakistan (Inderyas, Khattak, Raza, Hassan, and Mohammad, 2015) ... 45
Muhamad Zhafran Dana Caesario Study of Real Estate Registration Organization of Tehran Province (Shafie,
Baghersalimi, and Barghi, 2013) ... 46
2.5.4. The Impact of Autocratic and Democratic Leadership Style on Job Satisfaction (Bhatti, Maitlo, Shaikh, Hashmi, and Shaikh, 2012) ... 47
2.5.5. The Effect of Leadership Style on Employee Satisfaction and Performance of Bank Employee in Bangkok (Belonio, 2013) ... 48
2.5.6. The Relationship Between Effective Leadership and Employee Performance (Pradeep and Prabhu, 2011) ... 48
2.5.7. The Influence of Managerial Leadership Style on Employee Job Satisfaction in Jordanian Resort Hotels (Al-Ababneh and Lockwood, 2010) ... 49
CHAPTER 3 – RESEARCH METHODOLOGY ... 55
3.1. Research Process ... 55
3.2. Type of Research ... 57
3.3. Time Frame of Study ... 57
3.4. Type of Data ... 57
3.5. Unit of Analysis ... 58
3.6. Population and Sampling Method ... 58
3.7. Data Collection Method ... 58
3.8. Variable Operationalization ... 59
3.9. Research Question and Hypothesis ... 62
3.9.1. Research Question ... 63
3.9.2. Hypothesis... 63
3.10. Research Model ... 65
3.11. Data Analysis ... 66
3.11.1. Regression Analysis ... 67
3.11.2. Validity ... 70
3.11.3. Reliability ... 71
3.11.4. F-test ... 71
3.11.5. T-test ... 72
CHAPTER 4 – RESULTS AND ANALYSIS ... 73
4.1. Company Profile ... 73
4.2. Validity and Reliability Test Result ... 75
4.2.1. Leader’s Skills ... 75
4.2.2. Employee Job Performance (Variable Y) ... 81
4.3. Respondent Characteristics ... 82
4.3.1. Respondent’s Gender ... 83
Muhamad Zhafran Dana Caesario
4.3.3. Respondent’s Education ... 85
4.3.4. Respondent’s Tenure ... 85
4.4. Analysis... 86
4.4.1. Qualitative collection method result ... 86
4.4.2. Quantitative collection method result ... 89
4.4.2.1. Classical Assumption Test ... 89
4.4.2.2. Descriptive Statistics ... 94
4.4.2.3. Multiple Regression ... 95
4.5 Hypothesis Testing ... 100
4.6. Discussion ... 102
CHAPTER 5 – CONCLUSIONS AND RECCOMENDATIONS ... 105
5.1. Conclusions ... 105
5.2. Recommendations ... 108
GLOSSARY ... 109
REFERENCES ... 112
CURRICULUM VITAE ... 151
APPENDIX 1 (PRE-TEST AND POST-TEST QUESTIONNAIRE) ... 119
APPENDIX 2 (PRE-TEST DATA) ... 136
APPENDIX 3 (QUALITATIVE DATA) ... 138
APPENDIX 4 (QUANTITATIVE DATA) ... 142
APPENDIX 5 (QUANTITATIVE DATA IN AVERAGE) ... 148
