The Effects of Organizational Culture and Leadership Style on Employee Performance Through Employee Engagement as Intervening Variable at Pt. Bank Mandiri Micro Banking Cluster Baturaja

Abstract

This study focuses on the effects of organizational culture and leadership style on employee performance through employee engagement as intervening variable. The hypotheses which were tested in this study are: (1) organizational culture and leadership style had significant effect on employee engagement, (2) organizational culture, leadership style and employee engagement had significant effect on employee performance. The samples of this study was 68 respondents from Mandiri Bank of Baturaja Micro Banking Cluster (MBC). The data used were obtained from Mandiri Bank of Baturaja MBC and were analyzed using Structural Equation Models (SEM) with Smart-Partial Least Square (PLS) program. The results show that organizational culture did not have significant effect on employee engagement and employee performance, leadership style had positive significant effect on employee engagement and employee performance, while employee engagement had a positive significant effect on employee performance. This study is expected to be useful for a company especially for Mandiri Bank of Baturaja MBC as consideration in making improvement decisions and for further researchers this study can be used as one of the references for research that related to organizational culture, leadership style, employee engagement and employee performance.