The Influence of Organizational Culture, Morals and Leadership Style on Employee Performance

Abstract

Employee performance is the main factor for the success of a company, including in the plantation sector which has a field-based and hierarchical work system. PT. Perkebunan Nusantara IV The Tobasari is a state-owned company that implements the AKHLAK organizational culture (Trusted, Competent, Harmonious, Loyal, Adaptive, and Competent) to improve employee performance, but its implementation is not evenly distributed across all employees. In addition, frequent changes in leadership give rise to variations in leadership styles that can affect employee performance. The purpose of this study is to analyze the effect of AKHLAK Organizational Culture and Leadership Style on Employee Performance at PT. Perkebunan Nusantara IV The Tobasari. The AKHLAK culture includes six main aspects, namely Trustworthy, Competent, Harmonious, Loyal, Adaptive, and Collaborative as the main guidelines in state-owned companies, but its implementation is still uneven. Then, the company experiences frequent changes in leaders that can affect leadership style and employee performance. The approach used in this study is a quantitative research method, with data collection techniques through distributing questionnaires to 62 employees of PT. Perkebunan Nusantara IV The Tobasari as respondents. Data analysis was carried out using the Partial Least Square (PLS) method based on Structural Equation Modeling (SEM) to analyze the relationship between variables. The results of the study revealed that AKHLAK Organizational Culture has a positive and significant impact on the performance of employees of PT. Perkebunan Nusantara IV The Tobasari. Meanwhile, Leadership Style did not show any influence on the performance of employees of PT. Perkebunan Nusantara IV The Tobasari. The findings in this study indicate that employees are more influenced by work culture than leadership style.