International Journal of Academic Research in Business and Social Sciences

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Effect of Style of Leadership on Implementation of Organizational Culture, Motivation and Performance of PT HNR TBK Employees

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This research is about human resources (HR). The type of research is quantitative research to test the truth that human resources is not only used as a support for functional organizations, but is a central factor that can achieve organizational goals. The location of this study was conducted in West Java on PT HNR TBK manufacturing for staff employees. PT. HNR TBK is one of the branches of the world's largest tire manufacturer founded on January 26, 1917. The head office is in the United States employing more than 65,000 people with a production plant of 47 units in 21 countries throughout the world. The two innovation centers at the innovation center in Akron, Ohio and Colmar-Berg, Luxembourg always strive to create superior products and services that become industry technology and performance standards. PT HNR TBK strives to work hard to produce the best quality in all fields including products, processes, behavior and ethics, then behave honestly, integrity and respect, supports security and safety in the work area and everywhere. Commit to focus on organizational culture to create shared goals to be achieved. In the current era every employee is required to be able to provide the best performance. On the other hand employees are also required to have motivation and work experience in carrying out their roles and functions for both individuals and organizations. On this basis PT HNR TBK has a very dynamic leadership system which is obliged to make a replacement director of manufacturing every two years that has been carried out for more than 30 years which will bring a new leadership style. This is expected to affect the implementation of culture, work motivation and employee performance. This study uses a quantitative approach, where primary data is obtained by means of interviews, queriesers that have been prepared in advance by researchers and secondary data obtained from journals. The research time is from January to June 2018. Respondents in this study were 78 manufacturing staff employees. The variables in this study are latent exogenous in the form of organizational culture, leadership style, work motivation and endogenous latency in the form of employee performance.
Through the method of description analysis using Structural Equation Modeling Partial Least Square (PLS SEM) found several important results from this study. The leadership style has a very significant and positive influence on the implementation of organizational culture, which means that the better the leadership style by the director will improve the implementation of the organizational culture of PT HNR TBK. The leadership style has a significant and positive influence on employee motivation, where the better the leadership style of the director will increase the work motivation of PT HNR TBK employees. The influence of leadership style on performance is not significant and negative, which means that leadership style does not directly influence the performance of PT HNR TBK employees. Implementation of organizational culture has a positive but not significant effect on performance, where the better implementation of organizational culture will improve the performance of PT HNR TBK employees but the relationship is quite weak. Motivation with performance has a positive and significant effect, meaning that the more employee motivation increases, it will directly affect the performance of employees at PT HNR TBK.
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In-Text Citation: (Simanjuntak, Pandjaitan, & Kuswanto, 2018)
To Cite this Article: Simanjuntak, H., Pandjaitan, N. K., & Kuswanto, S. (2018). Effect of Style of Leadership on Implementation of Organizational Culture, Motivation and Performance of PT HNR TBK Employees. International Journal of Academic Research in Business and Social Sciences, 8(12), 98 – 108.