Effects of Leadership, Employee Engagement and Job Satisfaction on Employee Performance: An Empirical Study in Indonesia

• Published in: The Journal of Asian finance, economics, and business Vol. 8; no. 6; pp. 1129 - 1139
• Main Authors: NUR, Edwar M, LUBIS, Abdul Rahman, TABRANI, Mirza, DJALIL, Muslim A
• Format: Journal Article
• Language: Korean
• Published: 2021
• Subjects: Employee Performance; Forced Leadership; Friendly Leadership; Employee Engagement; Job Satisfaction
• ISSN: 2288-4637; 2288-4645

Human resources development is a set of processes to improve the quality of human capabilities in achieving organizational goals. More than ever, organizations must adapt their human resources to environmental changes. This study examines and analyzes empirically the relationship between forced leadership and friendly leadership behavior and employee performance, mediated by job satisfaction and employee engagement at the Aceh Disaster Management Agency (Badan Penanggulangan Bencana Aceh - BPBA), Indonesia. All 108 BPBA employees were selected as the study sample using the census technique. This study uses both descriptive and inferential statistical analysis. This study utilizes primary data gathered by distributing questionnaires to the respondents and analyzed using the Structural Equation Modeling (SEM) with Analysis of Moment Structures (AMOS) instrument. The study found a significant positive effect of friendly leadership on job satisfaction and employee engagement, while the forced leadership did not. Friendly leadership has an insignificant impact on employee performance, while forced leadership has adversely impacted employee performance. As for the mediating effect, the study only documented a significant mediating role of employee engagement on the relationship between friendly leadership and employee performance. These findings show the crucial role of friendly leadership in enhancing employee engagement and, consequently, employee performance.