�

American Journal of Economic and Management Business

p-ISSN: XXXX-XXXX

�e-ISSN: 2835-5199

Vol. 3 No. 11 November 2024

 

The Influence of Leadership Style and Work Discipline on Employee Performance Through Work Motivation as a Mediating Variable at PT. Urban Beauty Indonesia

 

I Wayan Agus Wirnawan1*, R. Tri Priyono Budi Santoso2, Yeyen Komalasari3, Gilbert Nainggolan4

1,2,3,4Universitas Dhyana Pura, Badung, Bali, Indonesia

Email: [email protected]*, [email protected], [email protected], [email protected]

 

Abstract

With work motivation acting as a mediating variable, this study examines the influence of leadership style and work discipline on employee performance at PT. Urban Beauty Indonesia. The research follows a quantitative descriptive approach. The study population consists of all 118 permanent employees at PT. Urban Beauty Indonesia, using a saturated sample technique. Data analysis was conducted using Partial Least Square (PLS) and Structural Equation Modeling (SEM) with the support of SmartPLS software. The results indicate that work motivation positively and significantly affects leadership style, while work discipline positively and significantly influences work motivation. Leadership style and work motivation both have a positive and significant impact on employee performance. Furthermore, work motivation mediates the positive and significant effects of leadership style and work discipline on employee performance at PT. Urban Beauty Indonesia. To enhance employee productivity, PT. Urban Beauty Indonesia could offer time and resource management training, helping employees prioritize tasks and maximize available resources. Additionally, implementing a structured professional development program could assist employees in identifying career advancement opportunities within the organization.

Keywords: Employee Performance, Leadership Style, Work Discipline, Work Motivation.

This article is licensed under a Creative Commons Attribution-ShareAlike 4.0 International

 

INTRODUCTION

Human resources play a crucial role as the backbone of institutions and companies (Jumadil & Hasan, 2023). The success of a company in achieving its goals is influenced by the quality of its human resources, reflected in their abilities, expertise, and skills in performing assigned tasks (Romadhani et al., 2022). Competent human resources are fundamental for organizations; without them, achieving optimal organizational goals becomes challenging (Sari et al., 2020). Therefore, organizations must ensure that their human resources are capable of delivering performance aligned with the organization's expectations and targets (Sugiono et al., 2021). The recognition and management of good performance become key factors in determining the success of an organization in reaching its objectives (Suryanti & Hidayat, 2022).

Employee performance plays a crucial role in achieving company success, where companies must strive to improve employee performance to realize organizational goals (Raziq & Maulabakhsh, 2015). Employee performance is the result achieved by employees in carrying out work according to standards set by the company (Putri Adhisty et al., 2023). Awareness and incentives provided by an institution also shape high performance (Suryanti & Hidayat, 2022). With the presence of high-quality employees, companies are expected to improve employee performance (Lesmana et al., 2023). Employee performance can be determined as work results that can be compared using standards predetermined by the organization (Ragita, 2022). Employee performance assessment is implemented in several companies, and one of the companies that also implements employee performance assessment is PT Urban Beauty Indonesia.

PT. Urban Beauty Indonesia operates in the wholesale trading sector of cosmetics and skincare, with strategic locations in Denpasar and South Jakarta. To evaluate employee performance, the company sets Key Performance Indicator (KPI) targets for each department and individual. Performance evaluations are conducted biannually to ensure alignment with company goals. Recognizing that well-performing human resources are essential for achieving desired targets, PT. Urban Beauty Indonesia continuously monitors its workforce. Interviews with the Human Resources Manager revealed that declining employee performance stems from several factors, including reduced work motivation, leadership style in managing teams, and decreased employee discipline. Addressing these aspects�enhancing motivation, fostering effective leadership, and reinforcing workplace discipline�is critical to optimizing productivity within the organization (Liyas, 2019).

Motivation plays a role as a mediating variable and influences employee performance (Sjahril Effendy Pasaribu, 2022). Work motivation encourages employees to improve their performance to achieve organizational goals (Niken et al., 2022). Work motivation influences performance because it is an intrinsic drive in working (Sriyani et al., 2023). Work motivation also indicates employee loyalty to the company where the employee works (Handayani, 2021). Based on interviews conducted with the Human Resources Manager at PT Urban Beauty Indonesia, there are situations occurring at PT Urban Beauty Indonesia that result in decreased employee performance, one of which is related to the decline in employee work motivation. Many employees feel underappreciated for their contributions, and decision-making does not involve employees who have already contributed and carried out work directly in the field. Additionally, unclear career paths and professional development are also problems, where many employees feel they lack opportunities for growth within the company. Employees with high motivation will be visible through their work performance, conversely, employees with less motivation will show a decline in performance from previous days (Maswar et al., 2020). If someone is motivated, they will strive with all their might to achieve goals (Fransiska & Tupti, 2020). High work motivation can be seen in employees' enthusiasm and efforts to achieve company targets (Rumampuk et al., 2022). Even if an employee has good operational abilities and is competent, if they lack motivation to work, the final results of their work will not be satisfactory (As'ad, 2021). Besides work motivation, leadership style also plays an important role in company management (Pratama & Elistia, 2020).

Leadership style is a key factor in a company's success (Ulfah et al., 2020). Leadership style plays an important role in achieving the vision and mission set by companies and organizations (Anggada Abim Pramudya et al., 2023). The leader's role is highly dominant in organizations, but it is also necessary to pay attention to employees (R & Muliati, 2022). Leadership style influences employee performance and overall company productivity (Sopian, 2022). Based on interviews conducted with the Human Resources Manager at PT Urban Beauty Indonesia, there are situations causing a decline in employee performance related to the leadership styles of several department managers. The leadership style of managers located in Denpasar tends to be more socially relationship-oriented, which can reduce employees' drive to innovate and take initiative, as employees may become too dependent on leadership direction. Additionally, more relaxed work mechanisms due to focus on work-life balance outside of the work context that is personal in nature, such as participating in cultural and traditional activities in various regions of Bali, can decrease productivity and make performance targets difficult to achieve. Meanwhile, the leadership style in Jakarta is more results-oriented, which can create excessive pressure on employees. Some department managers tend to make decisions without considering input or aspirations from subordinates and do not provide space for employees to participate in decision-making. Leaders must have the ability to motivate their subordinates to carry out tasks based on shared targets, meaning leaders must provide good references because every employee will observe and pay attention to their leaders (B. A. Putra & Pasaribu, 2022). Leaders need to motivate and encourage employees to achieve company goals (Suryanti & Hidayat, 2022). Not only do work motivation and leadership style determine employee performance, but work discipline also affects employee performance (Liyas, 2019).

Work discipline significantly affects employee performance in achieving company targets. Employees with good work discipline tend to be more responsible for their tasks (Jufrizen, 2021). Work discipline is essential for employees, as it reflects their awareness of the need to comply with organizational or company regulations (Nurjaya, 2021). Its primary purpose is to ensure employees operate according to established standards and rules (Ratnawati et al., 2022).

At PT Urban Beauty Indonesia, assessing employee discipline plays a crucial role in evaluating performance. Interviews with the company�s Human Resources Manager revealed several factors contributing to declining employee discipline. These include frequent tardiness, unreported absences, misuse of work hours for personal activities, leaving work before the scheduled time, and poor time management. Additionally, a lack of awareness regarding the importance of adhering to company policies and procedures exacerbates the issue. Inaccurate work scheduling and insufficient commitment to work responsibilities further reduce employee discipline. Moreover, inconsistent enforcement of rules and the lack of appropriate sanctions from management worsen the situation.

This can negatively impact the work carried out by employees if strict sanctions are not imposed. This needs to be done by superiors to ensure discipline among their subordinates (Andi Hasryningsih Asfar & Rita Anggraeni, 2020). Discipline serves as a fundamental pillar in organizations, directly influencing employee performance. Improved employee work discipline leads to enhanced performance outcomes (G. S. Putra & Fernos, 2023). Additionally, work discipline can also be seen from attendance at work, employees who have good work discipline will continue to work with discipline even without supervision from superiors (Adinda et al., 2023). If an employee believes that by adhering to work discipline standards and following effective leadership direction, they will achieve satisfactory results, and employees will be more motivated to work better. The purpose of this study is to determine the effect of leadership style and work discipline on employee performance through work motivation as a mediating variable at PT Urban Beauty Indonesia.

 

RESEARCH METHODS

This study employed a quantitative research method conducted at PT. Urban Beauty in Indonesia. The primary objective was to test predetermined hypotheses using statistical data analysis. The research utilized a causality approach, examining work motivation as the mediating variable, employee performance as the dependent variable, and leadership style and work discipline as independent variables.

The sample was selected using saturation sampling, involving 118 respondents who were regular employees of PT. Urban Beauty Indonesia. One of the key sample selection criteria was that respondents had to be active employees of the company. Data collection was conducted using questionnaires based on a Likert scale ranging from 1 to 5.

The research methodology included tests for data validity and reliability, measurement model testing (convergent validity, discriminant validity, and composite reliability), and structural model testing (R-squared, Q-squared, and path coefficient estimation). Hypothesis testing was conducted using SmartPLS software, ensuring a comprehensive quantitative analysis process.

 

RESULT AND DISCUSSION

Respondent Characteristics Results

The study's respondents were characterized by age, gender, and length of employment. Age distribution revealed that 67 respondents (56.8%) were aged 20�29, 35 respondents (29.7%) were aged 30�39, 10 respondents (8.5%) were aged 40�49, and 6 respondents (5%) were aged 50 and above. Regarding gender, 81 respondents (68.6%) were male, while 37 respondents (31.4%) were female. In terms of work tenure, the majority of respondents (103 individuals or 87.3%) had been employed for 1�5 years, while 15 respondents (12.7%) had worked for 6�10 years. A total of 118 respondents participated in this study.

Validity Test Results

Correlating items in a variable with their overall scores is done using the validity test. If an instrument's correlation coefficient, or Pearson Correlation value, between items and the instrument's overall score is higher than 0.30 at a significance level of 5% or 0.05, it is deemed legitimate. According to the results of the validity test, 20 statement items from the leadership style, work discipline, work motivation, and employee performance variables have been deemed valid because their Pearson correlation values are greater than 0.30, their total scores of all indicators are greater than 0.30, and their significance is less than 0.05. This can demonstrate that every question item satisfies data validity requirements.

Reliability Test Results

To ascertain whether or not the instrument being used is dependable, reliability testing is carried out. The Alpha Cronbach approach is used to test for reliability. If a construct or variable has an Alpha Cronbach value greater than 0.60, it is considered dependable. The findings of the reliability test indicate that the work motivation variable is 0.906 greater than 0.60, the leadership style variable is 0.916 greater than 0.60, the work discipline variable is 0.886 greater than 0.60, and the employee performance variable has a value of 0.936 above 0.60. If a variable's Cronbach's Alpha value is more than 0.60, it is considered dependable (Sekaran & Bougie, 2017). Each variable is deemed to meet data reliability, it can be concluded.

Measurement Model or Outer Model Results

Outer model evaluation in SEM-PLS analysis is a measurement evaluation conducted to test instruments that assess model validity and reliability. The outer model is the specification of relationships between latent variables and their indicators called the outer relation or measurement model, which is done to define construct characteristics with their manifest variables. Indicator validity criteria are measured with Convergent Validity, while reliability is measured with composite reliability and Average Variance Extracted (AVE). The outer model evaluation model is visualized in Figure 2.

Figure 1. Path Diagram of The Measurement Model

Source: SmartPLS Output

Convergent Validity Test Results

Convergent validity with reflection indicators can be seen from the correlation between indicator scores and the scores of each variable (Ghozali, 2016). Outer loading or loading factor values are used to test convergent validity. Individual indicators are considered reliable if they have correlation values above 0.70. The convergent validity test obtained results that all outer loading values on 20 statement items in each variable have values exceeding 0.70. Thus, it can be concluded that each indicator meets the requirements of convergent validity and is declared valid.

Discriminant Validity Test

Discriminant validity aims to assess whether a construct has sufficient discrimination by comparing cross-loading values on the intended construct, which must be higher than the cross-loading values of other variables (Ghozali, 2016). Then the indicator is said to be valid. Discriminant validity values greater than 0.60 indicate that the latent variable has become a good comparison for the model. The discriminant validity test obtained results that the cross-loading value of each indicator from each variable is greater than the cross-loading of other variables, which exceeds 0.60. Therefore, these results can be interpreted as the discriminant validity data using cross loading in this study being declared valid.

Average Variance Extracted (AVE) Test

The Average Variance Extracted (AVE) test for each construct value is set to be greater than 0.50 (Ghozali, 2016). The results of the Average Variance Extracted (AVE) test are presented in Table 1.

Table 1. Results of Average Variance Extracted (AVE) Test

No

Variable

Average Variance Extracted (AVE)

1

Employee Performance (Y2)

0,796

2

Work Motivation (Y1)

0,727

3

Leadership Style (X1)

0,748

4

Work Discipline (X2)

0,688

Source: SmartPLS Output (2024)

The results of the Average Variance Extracted (AVE) test in Table 1 show that the employee performance variable (Y2), work motivation (Y1), leadership style (X1), and work discipline (X2) have AVE values greater than 0.50. Therefore, this result can be interpreted as the Average Variance Extracted (AVE) has been validated.

Composite Reliability Test

Composite reliability refers to the part used to test the reliability values of the indicators of a variable (Ghozali, 2016). A construct is considered reliable if the composite reliability value or Cronbach�s alpha is greater than 0.70. The results of the construct reliability test, using both Cronbach�s alpha and composite reliability, are presented in Table 2.

Table 2. Results of Composite Reliability Test

No

Variable

Composite Reliability

Cronbach's Alpha

1

Employee Performance (Y2)

0,951

0,936

2

Work Motivation (Y1)

0,930

0,906

3

Leadership Style (X1)

0,937

0,916

4

Work Discipline (X2)

0,917

0,886

Source: SmartPLS Output (2024)

The results of the composite reliability test in Table 2 show that the employee performance variable (Y2), work motivation (Y1), leadership style (X1), and work discipline (X2) have composite reliability and Cronbach�s alpha values greater than 0.70. A construct is considered reliable if both Cronbach�s alpha and composite reliability values are greater than 0.70 (Ghozali, 2016). Therefore, this result can be interpreted that all constructs in this study are considered reliable.

Structural Model or Inner Model Results

The inner model or structural model illustrates the relationship or estimation strength between constructs or latent variables derived from theoretical substance. The structural model or inner model test is conducted by examining the R-square value. The R-square of a PLS model can be evaluated by looking at the R-square value for the model variables. The structural model is assessed with PLS structural analysis, which can be measured using the Q-square value for each endogenous latent variable as a predictive strength of the structural model. If the calculation results show a Q-square value greater than zero, the model is considered valid and has relevant predictive value. The Q-square calculation is performed using the blindfolding procedure by observing the Q-square value. The path diagram of the structural model is visualized in Figure 3.

 

Figure 2. Structural Path Diagram (Inner Model)

Source: SmartPLS Output (2024)

R-Square Test

The R-square value is used to determine the percentage of influence of exogenous variables on endogenous variables (Ghozali, 2016). The range of R-square values is between 0 and 1, where if the R-square value approaches zero, the influence of exogenous variables on endogenous variables becomes weaker. Conversely, if it approaches one, the influence of exogenous variables on endogenous variables becomes stronger. An R-square value of 0.67 is categorized as strong, 0.33 as moderate or medium, and 0.19 as weak (Ghozali, 2016). The larger the R-square value, the better the result of the research. The results of the R-square test can be presented in Table 3.

Table 3. Results of R-Square Test

No

Construct

R-Square

1

Employee Performance (Y2)

0,876

2

Work Motivation (Y1)

0,847

Source: SmartPLS Output (2024)

The R-square value test in Table 3 shows that the construct of employee performance (Y2) has a value of 0.876, which can be interpreted as 87.6%, categorized as a strong model. This means that the employee performance variable is influenced by leadership style, work discipline, and work motivation, while other variables outside the model influence the remaining 12.4%. The R-square value for the work motivation construct (Y1) is 0.847, which can be interpreted as 84.7%, categorized as a strong model. This means that the work motivation variable is influenced by leadership style and work discipline, while the remaining 15.3% is influenced by variables outside the model.

Q-Square Test

Q-square is used to measure how well the observed values are obtained from the parameter estimates and the model. Predictive relevance is the test conducted to show how well the observed values are predicted using the blindfolding procedure by examining the Q-square value. A Q-square value greater than 0 (zero) indicates that the model has predictive relevance, while a Q-square value less than 0 (zero) indicates that the model has low predictive relevance. If the Q-square value is 0.02, the predictive relevance is considered small/weak. If the Q-square value is 0.15, the predictive relevance is considered moderate/medium. If the Q-square value is 0.35, the predictive relevance is considered large/strong. The results of the Q-square test can be presented in Table 4.

Table 4. Results of Q-Square Test

No

Construct

Q-Square

1

Employee Performance (Y2)

0,687

2

Work Motivation (Y1)

0,599

Source: SmartPLS Output (2024)

The Q-square value test in Table 4 shows that the Q-square value for the employee performance model is 0.687, which is greater than 0. This indicates that leadership style, work discipline, and work motivation have predictive relevance for the employee performance variable. With a Q-square value of 0.687, which is greater than 0.35, it can be concluded that the predictive relevance is considered large/strong. Meanwhile, the Q-square value for the work motivation model is 0.599, which is greater than 0. This indicates that leadership style and work discipline have predictive relevance for the work motivation variable. With a Q-square value of 0.599, which is greater than 0.35, it can be concluded that the predictive relevance is considered large/strong.

Hypothesis Test of Direct Effects (Path Coefficients)

Hypothesis testing is performed by examining the probability value and t-statistics (Ghozali, 2016). The t-table value for a 5% alpha level is 1.96. Therefore, the rejection or acceptance of the hypothesis is based on whether the t-statistic is greater than the t-table value of 1.96, meaning Ha is accepted, and Ho is rejected if the t-statistic is greater than 1.96. In accepting or rejecting the hypothesis, the p-value is also considered, so Ha is accepted if the p-value is less than 0.05. Hypothesis testing is based on the values found in the path coefficients results. The output results from the structural model test are presented in Table 5.

 

 

Table 5. Results of Direct Effect Test (Path Coefficients)

Model Construct

Original Sample (O)

Sample Mean (M)

Standard Deviation (STDEV)

T-Statistics (|O/STDEV|)

P-Values

�(X1) → (Y1)

0,343

0,341

0,068

5,016

0,000

�(X2) → (Y1)

0,606

0,606

0,066

9,136

0,000

�(X1) → (Y2)

0,277

0,279

0,072

3,867

0,000

�(X2) → (Y2)

0,231

0,232

0,091

2,550

0,011

�(Y1) → (Y2)

0,465

0,461

0,084

5,503

0,000

Source: SmartPLS Output (2024)

Hypothesis testing using the Partial Least Square (PLS) method was conducted through simulations for each hypothesized relationship using the bootstrap method. The bootstrap method aims to assess the significance value between variables. A hypothesis can be accepted if the bootstrap test value exceeds 1.96. If the t-statistic value is greater than 1.96 and the p-value is lower than 0.05, the hypothesis will be accepted. Based on the path coefficient test in Table 5, the results show that the t-statistic value is above 1.96, and the p-value is below 0.05. This indicates that all direct influence models have a positive and significant effect.

The Influence of Leadership Style on Work Motivation

The hypothesis test results in Table 5 show that the influence of leadership style (X1) on work motivation (Y1) obtained a t-statistic value of 5.016, which is greater than 1.96 (5.016 > 1.96), with a p-value of 0.000, which is lower than 0.05. Since the t-statistic is greater than 1.96 and the p-value is smaller than 0.05, H0 is rejected, and Ha is accepted. This means that Hypothesis 1 in this study, which states that the leadership style variable positively and significantly affects employees� work motivation at PT Urban Beauty Indonesia, is accepted. This indicates that the better the leadership style implemented by a leader, the more motivated employees or individuals will be to work at PT Urban Beauty Indonesia. Conversely, the worse the leadership style applied by a leader, the less motivated employees or individuals will be to work at PT Urban Beauty Indonesia. In motivating employees, a leader�s role is crucial as leadership is a process of using positive influence on others to exert greater effort in various tasks or change their behaviour (Febrian, 2023).

The findings in this study align with the expectancy theory proposed, which explains values (a leader can guide subordinates with values such as integrity, fairness, and honesty that are reflected in the leadership style). An effective leadership style, which includes providing clear direction, constructive feedback, and consistent support, can enhance employees� confidence that their efforts will achieve the desired goals. Leadership style is a key factor in a company�s success (Ulfah et al., 2020). An effective leadership style can provide clear direction necessary support, and communicate expectations (expectancy) clearly to employees. When employees have a clear understanding of what is expected and feel that their efforts will be recognized and appreciated, their work motivation will increase. Leaders need to encourage and motivate employees to achieve the company�s goals (Suryanti & Hidayat, 2022). These findings are consistent with studies conducted by Ragita (2022), Oktaviana et al. (2022), Handayani (2021), Efendi & Hardiyanto (2021), Herawaty (2023), Sopian et al. (2022), which show that the leadership style variable has a positive and significant effect on the work motivation variable.

The Influence of Work Discipline on Work Motivation

The hypothesis test results in Table 5 show that the influence of work discipline (X2) on work motivation (Y1) obtained a t-statistic value of 9.136, which is greater than 1.96 (9.136 > 1.96), with a p-value of 0.000, which is lower than 0.05. Since the t-statistic is greater than 1.96 and the p-value is smaller than 0.05, H0 is rejected, and Ha is accepted. This means that Hypothesis 2 in this study, which states that the work discipline variable positively and significantly affects employees� work motivation at PT Urban Beauty Indonesia, is accepted. This indicates that the better the work discipline applied by employees, the more motivated employees or individuals will be to work at PT Urban Beauty Indonesia. Conversely, the worse the work discipline applied by employees, the less motivated employees or individuals will be to work at PT Urban Beauty Indonesia.

The findings in this study align with the expectancy theory proposed, which explains instrumentality (the organization or team can influence the level of work discipline. If all team members are clearly connected in their goals and tasks, this can enhance overall work discipline). Work discipline includes various aspects such as punctuality, adherence to rules, and the quality and quantity of work. If employees lack good work discipline, it becomes challenging for the company to achieve optimal results (Andi Hasryningsih Asfar & Rita Anggraeni, 2020). Work discipline not only means complying with rules but also carrying out responsibilities assigned by the organization with the expectation of improving employee effectiveness and inspiring obedient and orderly behaviour (Remmang & Said, 2020). Thus, discipline is an action implemented by employees to improve the quality of work, personal quality, and organizational quality (Ngongo & Duka, 2020). These findings are consistent with studies conducted by Syukron et al. (2022), Jumadil et al. (2023), Oktaviana et al. (2022), Herawaty (2023), Ferdinand (2022), which show that the work discipline variable positively and significantly affects the work motivation variable.

The Influence of Leadership Style on Employee Performance

The hypothesis testing results in Table 5 regarding the influence of leadership style (X1) on employee performance (Y2) show a t-statistic value of 3.867, which is greater than 1.96 (3.867 > 1.96), and a p-value of 0.000, which is lower than 0.05. Since the t-statistic is greater than 1.96 and the p-value is smaller than 0.05, H0 is rejected and Ha is accepted. This indicates that hypothesis 3 in this study is accepted, meaning the leadership style variable positively and significantly affects employee performance at PT Urban Beauty Indonesia. This finding suggests that the better the leadership style implemented by a leader, the better the performance of employees or individuals (Gunawan et al., 2022). However, if the leadership style does not align with the characteristics of the employees or the tasks being performed, it may lead to reduced motivation, lack of enthusiasm for work, or even loss of work spirit. This condition can result in employees losing focus and becoming less centred in their work (Rosalina & Wati, 2020).

The results of this study align with the expectancy theory proposed, which explains that the values (valence) possessed by a leader can significantly influence employee performance. When a leader demonstrates integrity in every decision and action, employees are more likely to trust and perform well. Leadership style affects employee productivity and overall company performance (Sopian, 2022). Leaders who effectively communicate and demonstrate positive values are better able to guide employees toward achieving improved performance. Leadership style is a key factor in a company's success (Ulfah et al., 2020). Leaders must possess the ability to influence employees so that they can work effectively to achieve the company�s set targets (Lesva Cahyani, 2022). These findings are also consistent with studies conducted by Jayanti and Nazwirman (2020), Sukaisih et al. (2022), Oktaviana et al. (2022), Ragita (2022), and Handayani (2021), which found that leadership style positively and significantly affects employee performance.

The Influence of Work Discipline on Employee Performance

The hypothesis testing results in Table 5.16 regarding the influence of work discipline (X2) on employee performance (Y2) show a t-statistic value of 2.550, which is greater than 1.96 (2.550 > 1.96), and a p-value of 0.011, which is lower than 0.05. Since the t-statistic is greater than 1.96 and the p-value is smaller than 0.05, H0 is rejected and Ha is accepted. This indicates that hypothesis 4 in this study is accepted, meaning the work discipline variable positively and significantly affects employee performance at PT Urban Beauty Indonesia. This finding suggests that the better the work discipline applied by employees, the better their performance at PT Urban Beauty Indonesia. Conversely, the poorer the work discipline, the more the performance of employees or individuals diminishes in their work at PT Urban Beauty Indonesia.

The results of this study align with the expectancy theory proposed, which discusses instrumentality (organizational or team influence can affect the level of work discipline). Work discipline is crucial in creating a productive and efficient work environment. It encompasses various aspects, such as adherence to company rules, punctuality, and consistency in task execution. When employees demonstrate high discipline, they tend to be more organized and focused on their tasks. The higher the level of adherence to rules at work, the greater the achievement of work results, making it difficult to achieve organizational success without discipline at work (Murni, 2022). These findings are also consistent with studies conducted by Jumadil et al. (2023), Syukron et al. (2022), Oktaviana et al. (2022), Herawaty (2023), & Ferdinal (2022), which found that work discipline positively and significantly affects employee performance.

The Effect of Work Motivation on Employee Performance

The hypothesis test results in Table 5 show that the effect of work motivation (Y1) on employee performance (Y2) obtained a t-statistic value of 5.503, which is greater than 1.96 (5.503 > 1.96), with a p-value of 0.000, which is lower than 0.05. Since the t-statistic is greater than 1.96 and the p-value is smaller than 0.05, H0 is rejected, and Ha is accepted. This indicates that hypothesis 5 in this study is accepted, meaning the work motivation variable has a positive and significant effect on employee performance at PT Urban Beauty Indonesia. This suggests that the higher the employees' motivation to work, the higher their performance in the workplace (Falah & Ayuningtias, 2020). Conversely, a decrease in employees' work motivation would lead to a decline in individual or employee performance at PT Urban Beauty Indonesia.

The results of this study align with the expectancy theory proposed, which explains that expectations (can drive employees' work motivation as high expectations for achieving or receiving certain rewards for their work results). These expectations serve as a primary driver for employees to enhance their work motivation. Work motivation influences performance because it is an intrinsic drive to work (Sriyani et al., 2023). Therefore, motivated employees have a strong future orientation and avoid delaying tasks to achieve organizational goals (Simatupang, 2021). These findings are consistent with studies conducted by Sriyani et al. (2023); Sukaisih et al. (2022); Oktaviana et al. (2022); Ragita (2022); and Syukron et al. (2022), which revealed that work motivation has a positive and significant effect on employee performance.

Hypothesis Testing Results of Indirect Effects and Total Effects

The test of indirect effects and total effects aims to determine the strength of influence between constructs indirectly and the total effect. The output results for the indirect effect test between constructs are presented in Table 6.

Table 6. Results of Indirect Effect Test and Total Effect

Type of Effects

Model

Construct

Original

Sample

(O)

Sample

Mean

�(M)

Standard

Deviation (STDEV)

T-Statistics (|O/STDEV|)

P-Values

Indirect Effect

�(X1)→(Y1)→(Y2)

0,160

0,156

0,041

3,907

0,000

�(X2)→(Y1)→(Y2)

0,282

0,280

0,062

4,563

0,000

Total Effect

(X1) → (Y1)

0,343

0,341

0,068

5,016

0,000

(X2) → (Y1)

0,606

0,606

0,066

9,136

0,000

(X1) → (Y2)

0,437

0,435

0,074

5,893

0,000

(X2) → (Y2)

0,513

0,512

0,074

6,894

0,000

(Y1) → (Y2)

0,465

0,461

0,084

5,503

0,000

Source: SmartPLS Output (2024)

The hypothesis of indirect influence through mediation variables can be accepted if the bootstrapping test value is above 1.96 the t-statistic value is equal to 1.96, and the p-value is less than 0.05. Conversely, if the t-statistic value is below 1.96 and the p-value is less than 0.05, the hypothesis is rejected. Based on the specific indirect effects and total effects testing results in Table 6, it is shown that the t-statistic value is above 1.96, and the p-value is below 0.05. Therefore, these results indicate that all direct influence construct models have a positive and significant effect.

The Role of Work Motivation in Mediating Leadership Style on Employee Performance

The results of the indirect influence in Table 6 for the effect of leadership style (X1) on employee performance (Y2) through work motivation (Y1) obtained a t-statistic value of 3.907, which is greater than 1.96 (3.907 > 1.96), with a p-value of 0.000, which is lower than 0.05. It can be concluded that H0 is rejected and Ha is accepted, meaning that the work motivation variable can significantly mediate the leadership style variable's influence on the employee performance variable at PT Urban Beauty Indonesia. Thus, it can be interpreted that hypothesis 6 (H6) in this study is accepted. This indication suggests that the more appropriate the leadership style applied in the workplace, the higher the work motivation of employees, which eventually improves employee performance at PT Urban Beauty Indonesia.

The results of this study align with the expectancy theory proposed, which discusses values (a leader can guide subordinates with values such as integrity, fairness, and honesty, reflected in their leadership style) and expectations (work motivation can lead to high expectations for certain achievements or rewards based on work results). An effective leadership style based on values such as integrity, fairness, and honesty can enhance employees' expectations through rewards and recognition, thereby increasing their work motivation. Motivation explains how to direct employees' energy and potential to collaborate productively and achieve the company's predetermined goals (Erna Angreani Manuain, 2022). Thus, leaders cannot directly motivate their employees, but through good leadership styles, employees will consistently stay motivated (Fitri et al., 2023). These findings are consistent with studies conducted by Ragita (2022), Anjaswangi & Sumartik (2022), Niken et al. (2022), and Oktaviana et al. (2022), which found that the leadership style variable positively and significantly affects employee performance through work motivation as a mediating variable.

The Role of Work Motivation in Mediating Work Discipline on Employee Performance

The results of the indirect influence in Table 6 for the effect of work discipline (X2) on employee performance (Y2) through work motivation (Y1) obtained a t-statistic value of 4.563, which is greater than 1.96 (4.563 > 1.96), with a p-value of 0.000, which is lower than 0.05. It can be concluded that H0 is rejected and Ha is accepted, meaning that the work motivation variable can significantly mediate the work discipline variable's influence on the employee performance variable at PT Urban Beauty Indonesia. Thus, it can be interpreted that hypothesis 7 (H7) in this study is accepted. This indication suggests that the higher the work discipline of employees, the higher their work motivation, which eventually improves their performance at PT Urban Beauty Indonesia.

The results of this study align with the expectancy theory proposed, which discusses instrumentality (organizations or teams can influence the level of work discipline. If all team members are clearly connected to the team's goals and tasks, this can enhance overall work discipline) and expectations (work motivation can lead to high expectations for certain achievements or rewards based on work results). When employees are disciplined in their work, they will deliver good performance, which will lead to desired rewards. Employee work motivation can be increased by providing high expectations for achievements or rewards based on their work results. Work discipline and work motivation instilled by the company in its employees greatly influence their commitment to work (Wahyuni & Karneli, 2021). Work motivation is essential for an organization because an increase in this drive enables employees to work optimally, helping the organization achieve its goals (Nilawati, 2024). These findings are consistent with studies conducted by Rezza and Wisnalmawati (2020), Oktavianti et al. (2022), Jumadil et al. (2023), Syukron et al. (2022), and Herawaty (2023), which found that the work discipline variable positively and significantly affects the employee performance variable through work motivation as a mediating variable.

 

CONCLUSION

Based on the analysis and discussion, leadership style has a positive and significant influence on employee work motivation. Similarly, work discipline positively and significantly affects employee work motivation. Moreover, leadership style positively and significantly impacts employee performance, both directly and indirectly through work motivation as a mediating variable. Likewise, work discipline exerts a positive and significant influence on employee performance, directly and indirectly, with work motivation serving as a mediating variable. These findings underscore the critical role of leadership style, work discipline, and work motivation in enhancing employee performance, offering valuable insights for organizational development.

The limitation of this study lies in the sample size, which could be improved in future research by using a larger sample. Future studies are expected to include other variables that also contribute to employee performance at PT Urban Beauty Indonesia, such as work environment, organizational culture, and employee competence. Recommendations for the company include enhancing employee performance by providing training focused on effective time and resource management so that employees become more skilled in prioritizing tasks, minimizing wasted time, and maximizing available resources. The company could also implement a clear and structured career development program that allows employees to see their career paths. Furthermore, the company could adopt a more inclusive policy, giving every employee equal opportunities to contribute to strategic decisions relevant to their work, making employees feel more valued and motivated to participate actively. Additionally, the company could implement a reward and punishment system, where employees who consistently adhere to workplace rules are rewarded, and strict sanctions are imposed on those who violate them, to foster better work discipline at PT Urban Beauty Indonesia.

 

REFERENCES

Adinda, T. N., Firdaus, M. A., & Agung, S. (2023). Pengaruh Motivasi Kerja dan Disiplin Kerja Terhadap Kinerja Karyawan. Indonesian Journal of Innovation Multidisipliner Research, 1(3), 134�143. https://doi.org/10.31004/ijim.v1i3.15

Andi Hasryningsih Asfar, & Rita Anggraeni. (2020). Pengaruh Lingkungan Kerja Dan Disiplin Kerja Terhadap Kinerja Pegawai Melalui Motivasi Sebagai Variabel Intervening Pada Dinas Perhubungan Kabupaten Serang. Jurnal Bina Bangsa Ekonomika, 13(1), 17�29. https://doi.org/10.46306/jbbe.v13i1.28

Anggada Abim Pramudya, Muhammad Rouf Purnama, Ninnes Sri Andarbeni, Putri Nurjayanti, & M. Isa Anshori. (2023). Implementasi Budaya Kerja Dan Gaya Kepemimpinan Terhadap Peningkatan Kinerja Karyawan. Sammajiva: Jurnal Penelitian Bisnis Dan Manajemen, 1(4), 24�40. https://doi.org/10.47861/sammajiva.v1i4.505

Anjaswangi, P. O., & Sumartik, S. (2022). The Influence of Leadership Style and Work Discipline on Employee Performance with Work Motivation as an Intervening Variable in MSMEs in Sidoarjo Regency. Indonesian Journal of Cultural and Community Development, 13. https://doi.org/10.21070/ijccd2022818

Efendi, S., & Hardiyanto, E. H. (2021). Analisis Pengaruh Gaya Kepemimpinan, Disiplin Kerja, dan Lingkungan Kerja terhadap Kinerja Karyawan melalui Motivasi sebagai Variabel Intervening. FOCUS, 2(1), 15�26. https://doi.org/10.37010/fcs.v2i1.291

Erna Angreani Manuain. (2022). Pengaruh Perilaku Pemimpin, Motivasi dan Lingkungan Kerja Terhadap Prestasi Kerja Pegawai (Literature Review Manajemen Sumberdaya Manusia). Inisiatif: Jurnal Ekonomi, Akuntansi Dan Manajemen, 1(4), 10�20. https://doi.org/10.30640/inisiatif.v1i4.346

Falah, A. M., & Ayuningtias, H. G. (2020). Pengaruh Motivasi Kerja Terhadap Kinerja Karyawan PT. XYZ. Jurnal Mitra Manajemen, 4(6), 990�1001. https://doi.org/10.52160/ejmm.v4i6.417

Febrian, W. D. F. (2023). Dampak Gaya Kepemimpinan Terhadap Kinerja Pegawai Pada Dinas Pemadam Kebakaran Jakarta Barat. Jurnal Perspektif Manajerial Dan Kewirausahaan (JPMK), 3(2), 89�98.

Ferdinal, A. (2022). Budaya Organisasi dan Disiplin Kerja terhadap Kinerja Dosen Melalui Motivasi Kerja Sebagai Variabel Intervening. Journal of Business and Economics (JBE) UPI YPTK, 7(1), 85�90. https://doi.org/10.35134/jbeupiyptk.v7i1.154

Fitri, N. A., Basri, H., Andriyani, I., & Even, N. (2023). Pengaruh Gaya Kepemimpinan terhadap Kinerja Karyawan dengan Motivasi Kerja sebagai Variabel Intervening (Studi Kasus pada Karyawan Kanca Bank Syariah Indonesia Palembang). EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi Dan Bisnis, 11(2), 1087�1094.

Fransiska, Y., & Tupti, Z. (2020). Pengaruh Komunikasi, Beban Kerja dan Motivasi Kerja Terhadap Kinerja Pegawai. Maneggio: Jurnal Ilmiah Magister Manajemen, 3(2), 224�234.

Ghozali, I. (2016). Aplikasi analisis multivariete dengan program IBM SPSS 23.

Handayani, R. (2021). The Effect of Leadership Style on Employee Performance with Work Motivation as Intervening Variable. International Journal of Multidisciplinary Research and Analysis, 04(09). https://doi.org/10.47191/ijmra/v4-i9-05

Henny Herawaty. (2023). The Influence of Leadership Style and Work Discipline on Employee Performance with Work Motivation as an Intervening Variable at PT. Permodalan Nasional Madani Bogor Branch Office. International Journal of Asian Business and Management, 2(4), 491�512. https://doi.org/10.55927/ijabm.v2i4.5660

Jayanti, G. A., & Nazwirman, N. (2020). Model Kinerja Pegawai: Kepemimpinan, Budaya Kerja, dan Motivasi Kerja dengan Kepuasan kerja variabel intervening. Jurnal Ilmiah Manajemen Dan Bisnis, 21(2), 157�173.

Jufrizen, J. (2021). Pengaruh Fasilitas Kerja Dan Disiplin Kerja Terhadap Kinerja Karyawan Melalui Motivasi Kerja. Sains Manajemen, 7(1), 35�54. https://doi.org/10.30656/sm.v7i1.2277

Jumadil, W., & Hasan, M. H. (2023). Pengaruh Disiplin Kerja dan Budaya Organisasi Terhadap Kinerja Pegawai dengan Motivasi Kerja Sebagai Variabel Intervening pada Dinas Pertanian Kota Tidore Kepulauan. Jurnal Sinar Manajemen, 10(1), 41�53.

Lesmana, M. T., Batubara, A. R. R., Alfianita, A., Simatupang, M. P., & Nasution, M. I. (2023). Kinerja Karyawan: Pendekatan Kepemimpinan Transformasional Dan Kerjasama Tim Dimediasi Kepuasan Kerja. Jurnal Ilmiah Manajemen Dan Bisnis, 24(1), 64�79.

Lesva Cahyani, M. (2022). Pengaruh Kepemimpinan dan Beban Kerja terhadap Kinerja Pegawai dengan Motivasi sebagai Variabel Intervening. Journal of Business and Economics (JBE) UPI YPTK, 7(1), 26�32. https://doi.org/10.35134/jbeupiyptk.v7i1.143

Liyas, J. N. (2019). Pengaruh Gaya Kepemimpinan, Motivasi kerja, dan Disiplin Kerja Terhadap Kinerja Karyawan Kantor Notaris Panam. EQUILIBRIUM : Jurnal Ilmiah Ekonomi Dan Pembelajarannya, 7(1), 40. https://doi.org/10.25273/equilibrium.v7i1.3835

Maswar, Zikriati Mahyani, & Muhammad Jufri. (2020). Pengaruh Motivasi Kerja Dan Lingkungan Kerja Terhadap Kinerja Karyawan. Al-Idarah : Jurnal Manajemen Dan Bisnis Islam, 1(1), 16�29. https://doi.org/10.35316/idarah.2020.v1i1.16-29

Murni, D. (2022). Pengaruh Diklat dan Disiplin Kerja terhadap Kinerja Pegawai dengan Motivasi Kerja Sebagai Pemediasi. Journal of Business and Economics (JBE) UPI YPTK, 7(1), 53�60. https://doi.org/10.35134/jbeupiyptk.v7i1.150

Niken, N., Putra, R. B., & Azka, B. P. (2022). The Influence of Leadership Style and Organizational Culture on Employee Performance through Work Motivation as an Intervening Variable. Economic Education Analysis Journal, 11(2), 201�216. https://doi.org/10.15294/eeaj.v11i2.58105

Nurjaya, N. (2021). Pengaruh Disiplin Kerja, Lingkungan Kerja Dan Motivasi Kerja Terhadap Kinerja Karyawan Pada Pt. Hazara Cipta Pesona. AKSELERASI: Jurnal Ilmiah Nasional, 3(1), 60�74.

Oktaviana, R. (2022). Pengaruh Gaya Kepemimpinan, Motivasi dan Disiplin Kerja terhadap Kinerja Karyawan di PT. Matahari Jaya Internasional. Jurnal Ekonomi Pertanian Dan Agribisnis, 6(1), 263�275. https://doi.org/10.21776/ub.jepa.2022.006.01.26

Pratama, G., & Elistia, E. (2020). Analisis motivasi kerja, kepemimpinan transformasional dan budaya organisasi terhadap kinerja karyawan dimediasi kepuasan kerja pada angkatan kerja generasi Z. Jurnal Ekonomi: Journal of Economic, 11(02).

Putra, B. A., & Pasaribu, V. L. D. (2022). Pengaruh Gaya Kepemimpinan dan Lingkungan Kerja Terhadap Kinerja Karyawan pada PT. Tumbakmas Niagasakti. Jurnal Pendidikan Tambusai, 6(1), 3993�3999.

Putra, G. S., & Fernos, J. (2023). Pengaruh Disiplin Kerja Dan Motivasi Kerja Terhadap Kinerja Pegawai Pada Dinas Tenaga Kerja Dan Perindustrian Kota Padang. Jurnal Valuasi: Jurnal Ilmiah Ilmu Manajemen Dan Kewirausahaan, 3(2), 617�629.

Putri Adhisty, S., Fauzi, A., Simorangkir, A., Dwiyanti, F., Caroline Patricia, H., & Khumairah Madani, V. (2023). Faktor-Faktor yang Mempengaruhi Kinerja Karyawan: Stress Kerja, Beban Kerja dan Lingkungan Kerja (Literature Review MSDM). Jurnal Manajemen Pendidikan Dan Ilmu Sosial, 4(1), 134�148. https://doi.org/10.38035/jmpis.v4i1.1408

R, M., & Muliati. (2022). Effect of Leadership, Discipline on Performance through Employee Motivation. International Journal of Scientific Research and Management, 10(06), 3627�3632. https://doi.org/10.18535/ijsrm/v10i6.em06

Ragita, A. (2022). Pengaruh Gaya Kepemimpinan Terhadap Kinerja Dengan Motivasi Kerja Sebagai Variabel Intervening Di Sekretariat Dprd Kabupaten Batanghari. Jurnal Manajemen Terapan Dan Keuangan, 11(03), 652�665. https://doi.org/10.22437/jmk.v11i03.17979

Ratnawati, W., Setiawan, R., & Irawati, L. (2022). Pengaruh Motivasi dan Disiplin Kerja Terhadap Kinerja Karyawan Pada PT. Simetri Putra Perkasa. JKBM (Jurnal Konsep Bisnis Dan Manajemen), 8(2), 228�239. https://doi.org/10.31289/jkbm.v8i2.7321

Raziq, A., & Maulabakhsh, R. (2015). Impact of Working Environment on Job Satisfaction. Procedia Economics and Finance, 23, 717�725. https://doi.org/10.1016/S2212-5671(15)00524-9

Remmang, H., & Said, M. (2020). Pengaruh Gaya Kepemimpinan, Motivasi Dan Disiplin Kerja Terhadap Kinerja Pegawai Pada Dinas Dukcapil Kabupaten Sinjai.

Rezza, A. M. (2020). The Influence Of Work Discipline And Organizational Communication On Employee Performance With Work Motivation As Intervening Variable At Yogyakarta Youth And Sports Center. Russian Journal of Agricultural and Socio-Economic Sciences, 105(9), 94�102.

Romadhani, D. N., Kirana, K. C., & Subiyanto, E. D. (2022). Work Culture And Job Satisfaction On Performance With Motivation As Intervening Variable. Jurnal Riset Bisnis Dan Manajemen, 15(01), 7�14.

Rumampuk, T. L., Mandamdari, A. N., & Nurdiani, U. (2022). Pengaruh Motivasi Kerja, Loyalitas dan Kualitas Karyawan Terhadap Kinerja Karyawan di PT. Indofood CBP Sukses Makmur Tbk. Jurnal Aplikasi Bisnis Dan Manajemen. https://doi.org/10.17358/jabm.8.2.491

Sekaran, U., & Bougie, R. (2017). Metode penelitian untuk bisnis: Pendekatan pengembangan-keahlian, edisi 6 buku 1.

Simatupang, F. (2021). Pengaruh Kepemimpinan Transformasional dan Disiplin Kerja terhadap Kinerja Pegawai melalui Motivasi Kerja sebagai Variabel Intervening pada Badan Kepegawaian Daerah Kabupaten Tapanuli Tengah. JUDICIOUS, 2(1), 11�21. https://doi.org/10.37010/jdc.v2i1.198

Sjahril Effendy Pasaribu, I. J. N. M. F. R. (2022). Pengaruh Gaya Kepemimpinan Terhadap Kinerja Pegawai dengan Motivasi dan Disiplin Kerja sebagai Variabel Mediating pada Dinas Sosial Kabupaten Labuhanbatu Utara. Journal Economy and Currency Study (JECS), 4(2), 60�76. https://doi.org/10.51178/jecs.v4i2.716

Sopian, I. (2022). Pengaruh Gaya Kepemimpinan Dan Kepuasan Kerja Terhadap Kinerja Karyawan Dengan Motivasi Sebagai Variabel Intervening. Journal of Business and Economics (JBE) UPI YPTK, 7(1), 103�111. https://doi.org/10.35134/jbeupiyptk.v7i1.157

Sriyani, S., Hubeis, A. V. S., & Ramly, A. T. (2023). Pengaruh Motivasi, Kepemimpinan Transformasional, dan Kepuasan Kerja Terhadap Kinerja Pegawai BPDASHL Citarum-Ciliwung. Jurnal Aplikasi Bisnis Dan Manajemen. https://doi.org/10.17358/jabm.9.1.318

Sugiono, E., Darmadi, D., & Efendi, S. (2021). Pengaruh Kompensasi, Gaya Kepemimpinan dan Kompetensi Terhadap Kinerja Pegawai Melalui Kepuasan Kerja Pada Pusdatin Kementan RI. Jurnal Manajemen Dan Bisnis Indonesia, 7(2), 132�149. https://doi.org/10.32528/jmbi.v7i2.5599

Sukaisih, D., Sunarno, & Sutono. (2022). Analisis Pengaruh Kepemimpinan, Lingkungan Kerja dan Kepuasan Kerja terhadap Kinerja Pegawai dengan Motivasi Kerja sebagai Variabel Intervening di Kantor Sekretariat Daerah Kabupaten Demak. Jurnal Ekonomi Dan Bisnis Digital, 1(3), 216�230. https://doi.org/10.55927/ministal.v1i3.1174

Suryanti, R., & Hidayat, R. (2022). Pengaruh Kompensasi, Disiplin Kerja Dan Motivasi Terhadap Kinerja Karyawan PT. Panasonic Gobel Erergy Indonesia. IKRAITH-EKONOMIKA, 5(3), 197�204. https://doi.org/10.37817/ikraith-ekonomika.v5i3.2455

Syukron, M., Hendriani, S., & Maulida, Y. (2022). Pengaruh Pengembangan Sumber Daya Manusia Dan Disiplin Kerja Terhadap Kinerja Pegawai Melalui Motivasi Kerja Sebagai Variabel Intervening Pada Dinas Pariwisata Provinsi Riau. Jurnal Daya Saing, 8(2), 168�176. https://doi.org/10.35446/dayasaing.v8i2.869

Ulfah, R. A., Subiyanto, D., & Kurniawan, I. S. (2020). Peran Mediasi Motivasi Kerja Pada Pengaruh Gaya Kepemimpinan Transaksional Dan Kompensasi Terhadap Kinerja Karyawan. Jurnal Fokus Manajemen Bisnis, 10(2), 209. https://doi.org/10.12928/fokus.v10i2.2419

Wahyuni, L., & Karneli, O. (2021). Pengaruh Disiplin Kerja Terhadap Kinerja Karyawan Melalui Motivasi Kerja Sebagai Variabel Intervening (Studi Pada Hotel Di Pekanbaru). Jurnal Aplikasi Bisnis, 18(2), 65�80.

 

 

Copyright holders:

I Wayan Agus Wirnawan, R. Tri Priyono Budi Santoso, Yeyen Komalasari, Gilbert Nainggolan (2024)

First publication right:

AJEMB � American Journal of Economic and Management Business