The Effect of Leadership Style and Work Discipline on Employee Performance at PT. Mitra Cahaya Abadi

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The Effect of Leadership Style and Work Discipline on Employee Performance at PT. Mitra Cahaya Abadi

Metalindo Surabaya

Siti Hamidah, Bayu Arlangga Putra, Hermien Tridayanti, Elok Damayanti Departement of Management

Faculty of Economics and Business Universitas Narotama Surabaya, Indonesia Jl. Arief Rahman Hakim 51 Surabaya, Indonesia

[email protected], [email protected], [email protected], [email protected]

Abstract

This study discusses how the influence of leadership style and work discipline on employee performance at PT Mitra Cahaya Abadi Metalindo Surabaya. This study aims to determine the effect of leadership style and work discipline on employee performance. The sampling technique in this study was using the census method.

Respondents in this study were 40 employees with active status in the city of Surabaya. The data analysis method used multiple linear regression test, with SPSS v.1.8 software test tool as an analytical tool. The results of this study indicate that the leadership style variable and work discipline variable have a significant effect on employee performance.

Keywords

Employee Performanc, Leadership Style, Work Discipline 1. Introduction

In various fields, especially organizational life, the human factor becomes the main problem in every activity in it. Organizations consciously coordinate social units with identifiable reactive boundaries, working continuously to achieve goals. All actions taken in every activity are initiated and determined by humans who are members of the company. In an organization there must be a human resource factor that has the potential of both leaders and employees in the pattern of tasks and supervision that determines the achievement of company goals. So that management activities can run well.

PT. Mitra Cahaya Abadi Metalindo Surabaya is a company that produces building tools such as shovels and hoes. As well as offering high quality products, affordable prices to meet the needs of local and international markets.The performance of employees of PT. Mitra Cahaya Abadi Metalindo Surabaya can also be measured through the completion of their duties effectively and efficiently as well as performing their roles and functions and they are all linearly related and positively related to the success of a company. Employees are required to be able to complete tasks more optimally, on time and responsibly.

High employee performance is expected by the company. The more employees who have high performance, the overall company productivity will increase so that the company will be able to survive in global competition. There are several factors that can reduce employee performance, including the decreased desire of employees to achieve achievement work, the lack of punctuality in break hours that makes them work as they please. With some of these factors, it is suspected that the lack of influence of a less assertive leadership style is very influential in the level of discipline of employee performance in achieving good work performance.

In order for this researcher to be focused, it is necessary to find out the purpose of the research. Based on the formulation of the problem in the existing research, the purpose of this research is to find out the effect of leadership style and work discipline on employee performance at PT MITRA CAHAYA ABADI METALINDO. From the explanation of the background above, this research is interested in researching leadership style, work discipline on employee performance, so the researcher researches with the title "The Influence of Leadership Style and Work Discipline on Employee Performance."

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163 1.1 Literature Review

1. Leadership Style

According to (Sutrisno (2015:218) "Leadership is the process of directing and influencing activities related to the tasks of group members". From the above opinion, it can be said that leadership is the person who has the highest position in the organization, as well as the main mover in the progress / retreat of a company.

The indicators contained in the leadership style quoted from (Sudja, N. A. P., & Mujiati, 2017) there are 6 indicators, namely:

1) The ability to make decisions.

2) Motivating potential.

3) Communication skills.

4) Ability to manage subordinates.

5) Responsibility.

6) Able to control emotions.

2. Discipline

According to Hasibuan, (2008) argues that discipline is a person's awareness and willingness to obey all company regulations and applicable social norms. Thus what is meant by work discipline is an attitude, behavior and action that is in accordance with the regulations, both written and unwritten and if violated there will be sanctions for the violation.

The indicators of discipline according to (S.P,Hasibuan, 2013) are:

1) Obedience to regulations 2) Obedience to the leader 3) Presence

4) Accuracy is present in the room 5) Ability to accept sanctions 3. Employee performance

According to Pasolong, (2010) more tend to use the word performance in referring to the word performance. According to him, performance is the result that can be achieved by a person or group of people in an organization, in accordance with their respective responsibilities in order to achieve the goals of the organization concerned legally, not violating the law and in accordance with morals and ethics.

According to (Robbins, 2015) there are five indicators, namely:

1) Quality 2) Quantity 3) Punctuality 4) Effectiveness 5) Independence 1.2 Conceptual Framework

H1

H2

H3 Figure 1. Framewor Leadership Style (X1)

Work Discipline (X2)

Employee Performance (Y)

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164 1.3 Hipotesis

Based on the formulation of the problem and the description of the literature review, the author proposes the research hypothesis as follows:

H1: Leadership style partially significant effect on employee performance at PT. Mitra Cahaya Abadi Metalindo Surabaya

H2: Work discipline partially significant effect on employee performance at PT. Mitra Cahaya Abadi Metalindo Surabaya

H3 : Leadership style and work discipline have a simultaneous effect on employee performance at PT.

Mitra Cahaya Abadi Metalindo Surabaya 2. Methodology

Analysis of the data used in this study using quantitative descriptive analysis techniques. According to Sujarweni(2015:12) the quantitative approach focuses on symptoms that have certain characteristics in human life which he calls variables, in a quantitative approach the nature of the relationship between variables is analyzed using objective theory.

1) Population and Sample

Sugiyono (2017:72) The population is a generalization area consisting of: Objects/subjects that have certain qualities and characteristics that are determined by researchers to be studied and then conclusions are drawn. The population in this study were employees of the production department at PT Mitra Cahaya Abadi Metalindo, totaling 40 employees

Sugiyono (2007:73) The sample is part of the number of characteristics possessed by the population. The sample is a subset of the population, consisting of several members of the population. In this study, no sampling technique was used because the sample studied was the whole of the existing population or called a census. The sample in this study were employees of the production department at PT Mitra Cahaya Abadi Metalindo, totaling 40 employees.

2) Data collection technique

The technique used in collecting this data was obtained directly from the original source in the form of a questionnaire.

3. Result and Discussion 3.1 Validity test

Validity test is used to measure the validity or validity of a questionnaire. A questionnaire is said to be valid if the statement on the questionnaire is able to reveal something that will be measured by the questionnaire. Ghozali (2013). From each question item on the three leadership style variables (X1), work discipline (X2), employee performance (Y) produces a Pearson correlation value above the r table value of 0.312

3.2 Reliability Test

This test is a measure of the stability and consistency of respondents in answering questionnaire statements. A questionnaire is said to be reliable or reliable if a person's answer to the statement is consistent or stable from time to time. Measurement of reliability in this study is to use the one shot method or measurement only once with the help of SPSS for windows. To measure reliability by looking at cronbachalpha. A construct or variable can be said to be reliable if it gives a Cronbach alpha value > 0.60.(Ghozali, 2007:42).

Table 1. Reliability Test Results Cronbach's

Alpha N of Items

,703 21

Based on the results of the reliability test of the research variables above, it shows that all Cronbach alpha values both from the dependent variable and the independent variable are declared reliable or acceptable because they have a value above 0.6, which means that the questions from this research questionnaire are said to be reliable or reliable.

3.3 Data Normality Test

The normality test was conducted to determine whether the residual values (existing differences) studied were normally distributed or not. A good regression model is to have a residual value that is normally distributed or close to normal. The normality test used is the Kolmogorov-Smirnov test. The data is said to be

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normal if the significance value is greater than 0.05 at (p>0.05). On the other hand, if the significant value is less than 0.05 at (p<0.05), it is said to be abnormal.

Figure 2. P-Plot Normality Test Results

Based on the picture above, it shows that the data points spread around the diagonal line, so it is said that the data in this study has a normal distribution.

Table 2. Data Normality Test One-Sample Kolmogorov-Smirnov Test

Unstandardized Residual

N 40

Normal Parametersa,b Mean ,0000000

Std. Deviation 2,18086667 Most Extreme

Differences

Absolute ,102

Positive ,102

Negative -,101

Kolmogorov-Smirnov Z ,647

Asymp. Sig. (2-tailed) ,797

a. Test distribution is Normal.

b. Calculated from data.

Based on the table above, it can be seen that the sig value is 0.0797 which is greater than 0.05, therefore the data in this study can be normally distributed.

3.4 Multicollinearity Test

The multicollinearity test aims to test whether the regression model found a correlation between the independent variables (independent), a good regression model does not have to have a correlation between the independent variables.(Ghozali ,2016:103).

The presence or absence of multicollinearity in the regression model in this study is seen from the tolerance value or variance inflation factor (VIF). The selection of tolerance value or variance inflation factor (VIF) in this study is because this method is a common method used and is considered more reliable in detecting the presence or absence of multicollinearity. The guideline for a regression model that is free of multicollinearity is to have a tolerance number close to the VIF limit of 10, if the VIF value is below 10, then there is no symptom of multicollinearity.

Table 3. Multicollinearity Test Results Coefficientsa

Model

Collinearity Statistics Tolerance VIF

1 (Constant)

Gaya Kepemimpinan ,991 1,031

Disiplin Kerja ,991 1,209

a. Dependent Variable: Kinerja Karyawan

Based on the table above, it shows that the VIF value for the independent variable is less than 10. So it can be said that there are no symptoms of multicollinearity in each of the independent variables.

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166 3.5 Heteroscedasticity Test

The heteroscedasticity test aims to test whether in the regression model there is an inequality of variance from the residuals of one observation to another observation. A good regression model is that there is no heteroscedasticity.Ghozali (2013).

Heteroscedasticity testing can be done by using the observation of scatter plot patterns generated through software or software called SPSS. And if the Scarlett plot pattern forms a certain pattern, then the regression model has symptoms of heteroscedasticity. The emergence of heteroscedasticity symptoms indicates that the regression model is not efficient in large or small samples. If there is no clear pattern and the points spread above and below zero on the Y axis, then it can be said to be free of heteroscedasticity.

Figure 3. Heteroscedasticity Test (Scatterplot)

Based on the picture above, it is said to be heteroscedastic if the image is spread out and does not overlap from the number line 0 on the X and Y axes, then there is no heteroscedasticity in this study. To strengthen the data above, the glesjer test was carried out as follows.

3.6 Multiple Linear Regression Test

Table 5. Multiple Linear Regression Test Coefficientsa

Model Unstandardized

Coefficients

Standardized Coefficients

T Sig.

B Std. Error Beta

1 (Constant) 31,000 7,521 4,122 ,000

Gaya Kepemimpinan

,015 ,223 ,003 6,821 ,003

Disiplin Kerja ,102 ,181 ,093 4,566 ,015

Y = 31,000 + 0.015X1 + 0.102X2 + e, from the results of the equation, it can be interpreted that:

1. The constant value of 31,000 shows that if the leadership style (X1), work discipline (X2) is equal to zero, then the employee's performance is 31,000.

2. The value of leadership style (X1) is 0.015. This shows that if the leadership style (X1) increases by one unit, it will increase employee performance (Y) by 0.015 with the assumption that the work discipline variable (X2) is constant.

3. The value of the work discipline coefficient (X2) is 0.102. This shows that if the employee's work discipline increases by one unit, it will increase employee performance (Y) by 0.102 units assuming the magnitude of the leadership style variable (X1).

3.7 Determination Test

Multiple determination coefficient analysis in this study is used to measure how much variation up and down the variables of leadership style (X1) and work discipline (X2) are able to affect employee performance (Y). From the results of the data test, it is possible to obtain the coefficient of multiple determination as follows :

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Table 6. Determination Test Results Model Summaryb

Model Adjusted R

R R Square Square Std. Error of the Estimate

1 ,363a ,359 ,345 2,239

a. Predictors: (Constant), Disiplin Kerja, Gaya Kepemimpinan b. Dependent Variable: Kinerja Karyawan

Based on the results of the data test in the summary model table above, the R square value is 0.359, which means that the leadership style variable (X1) and work discipline (X2) explains 35.9% of the variation in the employee performance variable (Y). While the remaining 64.1% is influenced by other variables not examined in this study.

3.8 F Test

The F test aims to determine the effect of the independent variable leadership style (X1), work discipline (X2) on the dependent variable, namely employee performance (Y) the criteria for accepting and rejecting the hypothesis used are as follows:

1. If the significant value is > 0.05 then Ho is accepted and Ha is rejected or the independent variable from the linear regression model is not able to explain the dependent variable.

2. If the significance value <0.05, then Ho is rejected and Ha is accepted or the independent variable from the linear regression model is able to explain the dependent variable.

Table 7. F . Test Results ANOVAb

Model Sum of Squares Df Mean Square F Sig.

1 Regression 1,609 2 ,805 5,160 ,022a

Residual 185,491 37 5,013

Total 187,100 39

a. Predictors: (Constant), Disiplin Kerja, Gaya Kepemimpinan

Based on the results of the data test from the ANOVA table above, it can be said that the significant result is 0.022 which is smaller than 0.05. Thus, it can be concluded that the leadership style variable (X1) and work discipline (X2) simultaneously have a significant effect on employee performance (Y).

3.9 T Test

Menurut Ghozali (2007:98) The t-test was used to determine the effect of each independent variable (X) on the dependent variable (Y). The steps in the decision-making test used in the t-test are as follows:

1. If the significant value is > 0.05 then Ho is accepted and Ha is rejected or the independent variable is not able to explain the dependent variable or there is no influence on the variable being tested.

2. If the significant value is <0.05, then Ho is rejected and Ha is accepted or the independent variable is able to explain the dependent variable or is usually said to be able to influence the two variables being tested.

Table 8. T . Test Results Coefficients^a

Model Unstandardized

Coefficients

Standardized Coefficients

T Sig.

B Std. Error Beta

1 (Constant) 31,000 7,521 4,122 ,000

Gaya Kepemimpinan

,015 ,223 ,003 6,821 ,003

Disiplin Kerja ,102 ,181 ,093 4,566 ,015

Based on the coefficients table above, the results of partial hypothesis testing are obtained as follows:

3. The influence of the leadership style variable (X1) on employee performance (Y)

The results of the analysis obtained a significant value of 0.003 (less than 0.05), which means that the leadership style variable (X1) has a significant effect on employee performance (Y).

4. The influence of work discipline variables (X2) on employee performance (Y)

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The results of the analysis of the work competence variable were obtained with a significant value of 0.015 (less than 0.05) which means that the work discipline variable (X2) has a significant effect on employee performance (Y).

3.10 Discussion of Research Results

1. The Influence of Leadership Style on Employee Performance

Based on the above analysis, it is known that the Leadership Style variable has a significant influence on employee performance at PT. Mitra Cahaya Abadi Metalindo Surabaya. This shows evidence with T-test results of 0.003 less than 0.05. From these values it can be concluded that Leadership Style has a significant influence on Employee Performance at PT. Mitra Cahaya Abadi Metalindo Surabaya.

2. The Effect of Work Discipline on Employee Performance

Based on the above analysis, it is known that the Work Discipline variable has a significant influence on employee performance at PT. Mitra Cahaya Abadi Metalindo Surabaya. This shows evidence with T-test results of 0.015 which is smaller than 0.05. From this value, it can be concluded that Work Discipline has a significant influence on Employee Performance at PT. Mitra Cahaya Abadi Metalindo Surabaya

3. The Effect of Simultaneous Work Discipline Leadership Style on Employee Performance

Based on the above analysis, it is known that the Leadership Style and Work Discipline variables have a significant influence on employee performance at PT. Mitra Cahaya Abadi Metalindo Surabaya. This shows evidence with the results of the F test of 5.160 with a significant level of 0.22. From these values, it can be concluded that Leadership Style and Work Discipline simultaneously have a significant influence on Employee Performance at PT. Mitra Cahaya Abadi Metalindo Surabaya.

4. Conclussion

Based on the analysis that has been done, several conclusions can be drawn as follows:

1. Leadership style partially positive and significant effect on employee performance at PT. Mitra Cahaya Abadi Metalindo Surabaya.

2. Work Discipline partially positive and significant effect on employee performance at PT. Mitra Cahaya Abadi Metalindo Surabaya.

3. Leadership style and work discipline simultaneously have a significant effect on employee performance at PT. Mitra Cahaya Abadi Metalindo Surabaya.

Based on the analysis above, the authors provide some suggestions for companies or other parties as follows:

1. Based on the results of data processing, the company's leadership style in terms of providing motivation should be further improved by providing incentives so that it can stimulate the enthusiasm of employees to be more enthusiastic about working and be able to maintain their achievements in the company.

2. It is expected that the leader can be good in terms of distributing tasks, by giving tasks fairly or according to their abilities so as not to cause jealousy among employees.

5. It is expected that the leader can be good in terms of distributing tasks, by giving tasks fairly or according to their abilities so as not to cause jealousy among employees.

6. The work discipline variable is a very dominant variable. If this company improves its performance, the company should increase discipline in terms of break time, with the company providing a canteen and prayer room at the company's location, it allows employees not to need to go out to find food, coffee, and prayer places so that employees can make their break time effective.

7. For further research, it is possible to add other variables that can affect employee performance in addition to leadership style, and work discipline in the analysis so that the research results are more representative.

Such as motivation, rewards, incentives, and others.

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Biography / Biographies

Siti Hamidah, born in Surabaya. Started education at SDN Kemayoran. Continuing education at SMPN 38 Surabaya and joining a student organization. Graduated from junior high school, continued education at Barunawati Surabaya High School majoring in natural science (biology) and joined student organizations as secretary. And now continues to be a management student at Narotama University Surabaya. She is a final year student who is completing his final project as one of the graduation requirements.

Bayu Airlangga Putra is a lecturer at Narotama University. He has experiences as a professional, consultant, and trainer in the field of HR management and quality management in several companies, both large and small scale. He has taught various subjects such as HR management, compensation management, performance evaluation, organizational behavior, and HR research. He also actively participates in various scientific conferences, both nationally and internationally. His research interests are in the fields of HR management,organizational behavior, entrepreneurship, and quality management.

Dr. Hermien Tridayanti is a Senior Lecturer in Economic and Business Faculty, Narotama University Surabaya. She’s got a Doctoral Economic from UNTAG Surabaya, Master of Management from UNTAG and Bachelor degree of Agricultural from UPN Surabaya. Now she is Dean on Economic and Faculty, Narotama University Surabaya. She has been recognized as an Auditor ISO 9001: 2015 and Research Reviewer used standardized methods of SNI ISO/IEC 17024:2012. Her interest research are in the field Quality Assurance in Higher Education, Strategic Management and Human Resources Development. She is member from Global Certification center on United Kingdom.

Elok Damayanti graduated at Universitas Surabaya (UBAYA) and then continued her study at Sekolah Tinggi Ilmu Ekonomi YAPAN, Surabaya. She completed her Master’s Degree of Management at Narotama University.

She focuses in Human Resources Management, Business English, Business Management and Business Administration. Previously she was a Head of Treasury at Public Service Commision, a government-own organization. At present she is a Lecturer at the Economy and Business Faculty at Narotama University. In addition, she is a Head of ASEAN Study Centre, responsible for the ASEAN cooperation, information and studies. Also as a Head of National Partnership, responsible for the domestic cooperation at the University.