The Role of Intrinsic Motivation in Mediating the Influence of Situational Leadership Style on Performance

 

Anisa1, Elwisam2, Kumba Digdoiseiso3*

1,2,3*Faculty of Economics and Business, Universitas Nasional, Jakarta, Indonesia

Email: [email protected]1, [email protected]2, [email protected]3*

 

 

ABSTRACT


This study aims to analyze The Role of Intrinsic Motivation in Mediating the Effect of Situational Leadership Style on Employee Performance at PT. Artha Alam Lestari. This study used primary data by distributing 100 questionnaires as respondents. Data were analyzed using Structural Equation Modeling analysis using AMOS 22 program. The results of the study showed that Situasional Leadership Style variable positive effected directly on Employee Performance, where Situasional Leadership Style that is applied will be able to improve Employee Performance. In addition, the Situational Leadership Style also positive effected indirectly on Employee Performance, which requires Intrinsic Motivation as an intervening variable to improve Employee Performance.

 

Keywords: Intrinsic Motivation, Situasional Leadership Style, Employee Performance

 

 

INTRODUCTION

Current economic conditions characterized by global competition have an impact on the continuity of a company. Companies must be able to maintain the continuity of their business and be able to win competition from other companies. The existence of increasingly tight and competent competition between companies requires management to plan and control company activities effectively and efficiently to achieve the company goals it wants to achieve. The goals of companies vary, but one goal that always exists in companies is to make a profit.

Types of work within PT. Artha Alam Lestari is a project or work package in auctions that is required to have quality employees with a high level of employee cooperation to win the auction from competitors or similar companies. Decreased employee performance will make it difficult for the company to obtain projects in the auction. Meanwhile, increasing employee performance will make it easier for companies to obtain projects in auctions.

This is in line with the view of (Mangkunegara, 2012) where performance is the result of work in quality and quantity achieved by an employee in carrying out his duties in accordance with the responsibilities expected and given to him. A person who has a good level of performance can be seen from his ability to carry out the tasks that are his responsibility so as to produce good work or results. Employee performance is declared good and successful if the desired company goals or targets can be achieved well.

From the phenomenon of employee performance data, it can be seen that employee performance at PT. Artha Alam Lestari is not yet optimal and there is a decreasing percentage of employee performance reports from 2016 to 2018 with data obtained in May 2019 having 132 employees. Apart from other factors, this is also one of the factors causing the decline in the number of PT projects. Artha Alam Lestari from 2016 to 2018.

In achieving improving the performance of PT employees. Artha Alam Lestari needs supporting factors, one of which is leadership style. The application of an appropriate leadership style is thought to be able to improve the declining performance of PT employees. Artha Alam Lestari. Everywhere companies need leaders who can influence their employees by adapting to conditions and situations and are flexible in adapting to the maturity of their subordinates and work activities. This is in accordance with the conditions and situations of every company which requires its leaders to be accommodating and aspirational towards employees. The characteristics of situational leadership are the accuracy of a leader's style in influencing employees to improve employee performance.

Previous research conducted by (Wijaya, et al., 2018) suggested that situational leadership style influences employee performance. This view is in line with (Walsa & Ratnasari, 2016) concluding that situational leadership style influences employee performance. However, there is other research that does not support this, namely the results of research (Rinaldi, 2016) concluding that situational leadership style has no effect on employee performance.

From the results of previous research, there is still controversy regarding the results of the influence of situational leadership style on employee performance. One of the things that must be the company's main concern is to apply an appropriate leadership style in work activities that can intrinsically motivate or mobilize employees who are directed or focused on improving employee performance, so that the desires of the employees and the company's goals are simultaneously achieved, and vice versa in In forming this intrinsic motivation, the role of a leader who has good motivating abilities is also needed. In this case, it is thought that it will make employee performance more optimal.

 

RESEARCH METHOD

This research uses quantitative research methods. The data collection technique in this research is the type of data used in this research is primary data, namely data obtained from respondents through a questionnaire (list of statements). This type of data is obtained directly from individuals who are research subjects where the data is generated from the results of questionnaires distributed and weighted using a Likert Scale. In this study, the object of research is employee performance at PT. Artha Alam Lestari, abbreviated as PT. AAL. The population that will be used in this research is employees of PT. There are 132 Artha Alam Lestari who have worked for more than one year. In determining the data to be studied, the sampling technique used is non-probability sampling, namely a sampling technique that does not provide equal opportunities or opportunities for each element or member of the population to be selected as a sample (Sugiyono, 2016). The research sample size from this population can be used by the Slovin formula (Ferdinan, 2014) so that the minimum sample size is 100 respondents. The data that has been collected is then analyzed statistically using the AMOS program.

RESULTS AND DISCUSSION

Outlier Test

 

Table 1. Outliner Test

Observation number

Mahalanobis d-squared

p1

p2

33

29.465

0.014

0.756

40

25.572

0.043

0.931

97

25.502

0.044

0.816

55

25.316

0.046

0.678

77

25.192

0.047

0.517

46

25.133

0.048

0.351

3

24.499

0.057

0.346

4

24.44

0.058

0.224

98

22.173

0.103

0.717

61

22.129

0.104

0.606

 

Of the one hundred (100) sample data used in the study, the top 6 (six) observations of the p1 value are smaller than 0.05, but the p2 values are all greater than 0.05, thus it can be concluded that the research data used are free from data outliers.

Measurement Model Test

A diagram of a flowchart

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Figure 1. Measurement Model Test

 

To test the validity of SEM, it is known through the "Estimate" value. What is matched is the variable value against the indicator Ghozali (2013) explains that the indicator of the variable is called valid if the "Estimate" value is> 0.05. Based on this information, it can be interpreted that all indicators are valid.

Structural Equation Testing

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Figure 2. Structural Equation Testing

 

The figure above shows that the planned model is marginally less fit, because after testing the fit, the CMIN / DF, GFI, AGFI, RMSEA, TLI and CFI values are good enough. Therefore, this model can be continued at the hypothesis testing stage (Sarwono, 2017).

 

Table 2. Structural Equation Testing Results

 

 

 

Estimate

S.E.

C.R.

P

Label

Intrinsic motivation

<---

Situational leadership style

.865

.136

6.345

***

par_14

Employee Performance

<---

Situational leadership style

.525

.191

2.742

.006

par_13

Employee Performance

<---

Intrinsic motivation

.554

.159

3.482

***

par_15

Source: Primary Data Processing Results

 

Table 3. Hypothesis Testing Results

Influence

t count

Sig

Conclusion

Situational leadership style

à

Employee Performance

2.742

.006

Significant

Source: Primary Data Processing Results

 

Based on the table above, the following conclusions are obtained:

The t value of situational leadership style on employee performance is 2.742 and the Sig value. 0.006, because the Sig value is smaller than α (0.05), it means that the situational leadership style has a positive and significant effect on employee performance.

Mediation or Intervening Testing

The procedure for testing the hypothesis Y1 as a mediating or intervening variable for the relationship between X1 and Y2 is in 2 steps. These mediation tests include the following:

A diagram of a diagram

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Figure 2. Direct Model Mediation Test

 

Table 4. Direct Model Mediation Test Results

 

Estimate

S.E.

C.R.

P

Label

Employee performance

<---

Situational leadership style

0.683

0.171

5.928

***

par_1

Source: Primary Data Processing Results

 

Estimate numbers in table 4 for standardized regression weight values. Then the researcher continued by estimating the Full Model

A diagram of a flowchart

Description automatically generated

Figure 3. Full Model Mediation Test

 

Table 5. Full Model Mediation Test Results

 

 

 

Estimate

S.E.

C.R.

P

Label

Intrinsic motivation

<---

Situational leadership style

.865

.136

6.345

***

par_14

Employee performance

<---

Situational leadership style

.525

.191

2.742

.006

par_13

Employee performance

<---

Intrinsic motivation

.554

.159

3.482

***

par_15

Source: Primary Data Processing Results

 

Table 6. Direct Model and Full Model Test Results

Testing

Relationship

Path Coefficient

P

Direct Model

X1 - Y2 (b1)

0,683

Significant

Full Model

X1 - Y2 (b1')

0,525

Significant

Source: Primary Data Processing Results

 

Based on the table above, b1 has a value of 0.683. After testing the full model, b1' value decreases to 0.525, so it can be concluded that intrinsic motivation is an intervening variable but functions partially.

 

Direct and Indirect Effects

 

Table 7. Direct and Indirect Effects

Influence

Path coefficient

Direct influence

Indirect influence

Total

Situational leadership style

à

Employee Performance

0,525

0.359

0.328

0.687

Intrinsic motivation

à

Employee Performance

0.554

0.446

-

0.446

Source: Primary Data Processing Results

 

Based on the table above, it can be concluded as follows:

1.     The total effect of situational leadership style on employee performance is 0.359, meaning that the situational leadership style has a direct effect on employee performance.

2.     The total effect of intrinsic motivation on employee performance is 0.446, meaning that intrinsic motivation has a direct effect on employee performance.

3.     The total effect of situational leadership style on employee performance through intrinsic motivation is 0.687, meaning that the situational leadership style partially affects employee performance through intrinsic motivation.

Discussion

Situational Leadership Style Has a Direct Positive Influence on Employee Performance

The research results show that the situational leadership style influences employee performance directly, which means that the better the situational leadership style provided, the more performance the employees have. This research is in line with research by Mulyadi and Syafitri (2015) concluding that situational leadership style directly has a significant and positive effect on employee performance. This is also supported by research from Azzuhri and Huda (2016) which concluded that situational leadership style influences employee performance. From the results of this research, PT. Artha Alam Lestari must be able to maintain and optimize the situational leadership style that has been implemented, because it can improve employee performance.

Situational Leadership Style has a Positive Influence on Employee Performance through Intrinsic Motivation

Based on the results of data analysis, it was found that situational leadership style had a positive effect on employee performance through intrinsic motivation. If the level of intrinsic motivation increases, this means that the relationship between leaders and employees is also getting stronger and the situational leadership style applied influences employee performance at PT. Artha Alam Lestari. The research is in line with research conducted by Kusuma and Al Musadieq (2017) which states that situational leadership style has a positive and significant effect on employee performance through intrinsic motivation. This is also supported by research from (Dermawan, et al., 2016) which concluded that situational leadership style influences employee performance through intrinsic work motivation. From the results of this research, the leaders of PT. Artha Alam Lestari must be able to maintain and optimize a situational leadership style that can influence employee performance to increase by intrinsically motivating employee work.

 

CONCLUSION

Based on the results of data analysis regarding the role of intrinsic motivation in mediating the influence of situational leadership style on employee performance at PT. Artha Alam Lestari, namely the situational leadership style has a direct positive effect on employee performance, which means that the better the situational leadership style provided, the better the performance of employees at PT. Artha Alam Lestari. The main thing that PTs need to improve. Artha Alam Lestari is the ability to generate a spirit of teamwork, enthusiasm in working, and a high optimistic attitude in solving problems in the workplace. Apart from that, there is also a need to increase the need to pay special attention to the needs of each subordinate to meet the needs of employees in achieving better performance and the need to grow, which is done by becoming a coach and mentor to their subordinates directly. Another thing that needs to be improved is the ability to take risks, act consistently when completing tasks and responsibilities and be able to be relied on to do the right thing and demonstrate standards of behavior based on high ethics and morality. In addition, situational leadership style has a positive effect on employee performance through intrinsic motivation. This means that if the level of intrinsic motivation increases, then this can strengthen the relationship between leaders and employees, with this relationship being able to improve employee performance at PT. Artha Alam Lestari. We would like to express our sincere appreciation to all those who have contributed to this research. Thank you to the Faculty of Economics and Business, National University, Jakarta and the Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu for access to the necessary facilities and materials. Not to forget, thank you to all respondents and participants who participated in this research. Your dedication and contribution means a lot to the smooth running of this research. Thank you for all the support you have provided.

 

 

 

 

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Copyright holder:

Anisa, Elwisam, Kumba Digdoiseiso (2024)

 

First publication right:

Journal of Social Science

 

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