The Impact of Organizational Culture and Leadership Style on Job Satisfaction and Employee Performance

Abstract

The purpose of this study is to determine the impact of organizational culture and leadership style on job satisfaction and employee performance. This research is based on primary data, and the sample in this research is lecturer STIE Perbanas Surabaya which is engaged in education. The statistical method used in this research is Structural Equations Modeling-Partial Least Square (SEM-PLS) with 36 samples. The dimensions used in leadership style are participative style, nurturant style, authoritarian style, bureaucratic style and task oriented. The dimensions used in organizational culture are integration approach, diffrentiation approach, and fragmentation approach. Dimensions used in job satisfaction are satisfaction with salary, promotion, colleagues, supervisor and job supervisor. And the dimensions used in employee performance are subject knowledge, assessment skills, student-lecturer relations, organizational skills, communication skills, subject relevance and utility (meaningfullness) of assignment. The results showed that organizational culture dimension had positive impact on employee performance, leadership style had positive impact on employee performance, job satisfaction had positive impact on employee performance, organizational culture had positive impact on job satisfaction, leadership style had positive impact on job satisfaction and leadership style had positive impact on organizational culture. So the research findings prove that organizational culture and leadership style is an important element that greatly affect employee performance and job satisfaction. 1

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