40 
 

The Influence of Leadership Style and Organizational Culture on 

Employee Performance Through Employee Satisfaction as An Intervening 

Variable in PG GEMPOLKREP-PTPN X 
Imaniar Cahyani1*), Eddy Yunus2) 

 
1,2)Faculty of Economics and Business, University Dr. Soetomo, Surabaya, Indonesia 

E-mail: imaniar.cahyani@gmail.com 1*), eddyyunus67@yahoo.com 2)
 

 
 
 
 
 

Abstract.The existence of a new leader with a young age in recent years has given color to the leadership 

style at PTPN X. In the same period, the board of directors reconstructed and reintroduced the vision, mission 

and culture of the organization. The unachieved production potential per hectare and milling capacity have 

become evaluation material for management to achieve added value. Therefore this study aims to analyze the 

influence of leadership style and organizational culture on the performance of PG Gempolkrep-PTPN X 

employees, and analyze it through job satisfaction as an Intervening Variable. This research was conducted 

using a quantitative approach with a survey assessment method using a questionnaire as a data collection tool. 

The research sample used was purposive sampling, namely 34 employees from the leadership of PG 

Gempolkrep-PTPN X. Data analysis is based on data obtained from internal company sources and the results 

of questionnaires that have been distributed to respondents. The procedure carried out is to assess the results 

of the questionnaire and process them using the SEM-PLS method to then be analyzed using the partial least 

squares analysis technique using smartPLS. The results of the study show that leadership style and 

organizational culture have a significant effect on employee performance, leadership style and organizational 

culture have a significant effect on employee job satisfaction, and job satisfaction has a significant effect on 

employee performance, which means job satisfaction can mediate the influence of leadership style and 

organizational culture. on employee performance. 

 
Keywords: Leadership Style; Organizational Culture; Employee Performance; Job Satisfaction  

 
 

I . INTRODUCTION 
 

Industrial development in the era of rapid globalization 
has made company competition increasingly stringent and 
more complex so that every company is required to pay 
more attention to the management system within the 

company in order to achieve predetermined goals. In 
management, the human factor (human resources) is the 
most decisive factor because its role as the subject of policy 
implementation and company operational activities. Human 
Resource Management (HRM) is one part of management 

that regulates the relationship and role of resources (labor) 
owned by individuals efficiently and effectively and can 
optimally used so that the common goals of the company, 
employees and society are achieved (Ansory & Meithiana, 

2018: 59). This shows that the company's success is strongly 
influenced by employee performance (job performance) or 
the work achieved by an employee in carrying out tasks in 
accordance with the responsibilities given to him. Several 

ways can be taken by companies to improve employee 
performance, including by realizing employee satisfaction 
through leadership style and organizational culture.  

Leadership plays an important role in an organization. 
According to Sedarmayanti (2017: 363), leadership is the 
whole activity in order to influence people to want to work 
together to achieve a desired goal together. Whereas  
according to Ansory & Meithiana (2018:340), culture 
organization is a combination of beliefs, hopes, values 
displayed by its members, and transmitted from one 
generation of employees to other employees on an ongoing 

 
 
basis. So that organizational culture is a major component in 
achieving organizational missions and strategies effectively 
(Sedarmayanti, 2017: 351).  

PTPN X is a plantation-based agribusiness company in 

Indonesia for the East Java region, with management of 
processing and marketing of plantation products with a sugar 
core business. PTPN X has 11 Sugar Factory Units (PG) 
spread across the East Java region. One of the sugar factories 

under the auspices of this company is PG (Sugar Factory) 
Gempolkrep which is one of the largest sugar business units 
with a milling capacity of 6500 tons/day. In 2017, the 
Ministry of BUMN established a new PTPN X Board of 
Directors composition. This initiated a reshuffle of the human 

resource composition at the middle to top PTPN X level. The 
change in the Board of Directors was also followed by 
changes in the vision, mission, business philosophy and 
corporate culture of the new PTPN X.  

One of the most important things to ensure that, the 
human resources owned must be able to support the 
company's performance so that companies need to pay 

attention to the job satisfaction of their employees. 
Furthermore, this research will have implications for 
improving employee performance. Based on the background 
above, this research is expected to provide an overview of the 
extent to which "The Influence of Leadership Style and 

Organizational Culture on Employee Performance Through 
Employee Job Satisfaction as an Intervening Variable at PG 
Gempokrep-PTPN X“. 

 
 
 

 



41 
 

LITERATURE REVIEW 

Leadership Style  
Leadership is interpersonal influence, in certain 

situations and directly through the communication process to 
achieve one or several specific goals (Tannebaum, Weschler, 
and Nassarik in Ansory & Meithiana, 2018: 85). According 
to Yunus (2016: 101), leadership is defined as inspiration 
and the movement of other resources to carry out actions 
together in order to achieve good values. Leadership 
indicators according to Sedarmayanti (2017: 34) show that a 
leader has the ability to Telling (direct), selling (convey), 
Participating (include) and Delegating (authority), so that 
leaders can influence the behavior of others to follow what is 
the will of them. 
 

Organizational culture  
According to Ansory & Meithiana (2018: 340), 

organizational culture is a combination of beliefs, 

expectations, values displayed by its members, and is 
transmitted from one generation of employees to other 
employees on an ongoing basis. Whereas, . According to 
Xenikou & Fernham in Mariam (2010: 40), organizational 
culture as a value refers to everything in the organization 

that is seen as highly valued, while as a cultural norm of 
behavior.  

Organization refers to how well the elements 
(members) of the organization behave. Meanwhile Robins 
(2003) in Sedarmayanti (2017: 350) states that there are 
primary characteristics (indicators) in organizational culture, 
namely as follows:  
1. Innovation and risk taking: the extent to which 

employees are encouraged to be innovative and take 
risks 

2. Attention to detail: the degree to which employees  
are expected to demonstrate precision, analysis, and 
attention to detail  

3. Result orientation: the extent to which management 
focuses on results, not on the techniques and processes 
used to achieve those results  

4. People and team orientation: the degree to which 
management decisions produce effects on people in the 
organization  

5. Aggressiveness and stability: the degree to which people 
are aggressive and competitive rather than Relaxed 

 

 

Job satisfaction  
Job satisfaction is an emotional state, how people feel 

about work and its aspects (Sedarmayanti, 2017: 168). 
According to Robins (2003) in Indrasari (2017: 38) 
employee job satisfaction is as a general attitude of an 
individual towards his work which shows the difference 
between the amount of awards received by workers and the 
amount they believe they should receive. The indicators of 
job satisfaction according to Sedarmayanti (2017: 168), are 
as follows: (1) Supervision, (2) Organization and 
management, (3) Opportunities for Advancement, (4) Salary 
and financial benefits, and co-workers. According to Mariam 
(2010: 44), the more expectations are met, the higher the 
level of job satisfaction. 

Employee performance  
According to As'ad (2005) in Indrasari (2017: 51) 

performance is a success full role achievement obtained by a 
person or group of people from their actions. Meanwhile, 
according to Mangkunegara (2013: 67) performance can be 
defined as the result of work in quality and quantity that can 
be achieved by an employee in carrying out tasks in 
accordance with the responsibilities given to him. According 
to Indrasari (2017: 49) Performance management is not 
limited to a tool for evaluating employee performance but as a 
strategy for assessing and motivating increased work 
productivity. Performance indicators in Ratminto and Atik 
Septi (2005) in Ansory & Meithiana (2018: 213) are described 
as follows:  
(1) Economy, namely the use of as few resources as possible,  
(2) Efficiency, namely as the condition shows the 
achievement of the best ratio between input and output, (3) 
Effectiveness, namely the achievement of predetermined 
goals, both in the form of targets, long-term goals and 
organizational missions, (4) Responsiveness, namely  
measurement power responsive employee, (5) Responsibility, 

namely a measure that shows the implementation of work 

without violating the provisions that have been made 

stipulated, and (6) Accountability, which is a measure that 

shows how much the level of conformity of work with 

company sizes. This means that the higher the quality and 

quantity of one's work, the higher the performance. 
 
 

CONCEPTUAL FRAMEWORK  
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Picture 1 

Conceptual Framework 
 

 

Hypothesis  
H1 : Hypothesis 1  
The Effect of Leadership Style (X1) on Employee 
Performance (Y)  
H2 : Hypothesis 2  
The Effect of Organizational Culture (X2) on Employee 
Performance (Y)  
H3 : Hypothesis 3  
Effect of Leadership Style (X1) on Employee Job 
Satisfaction (Z) as an intervening variable  
H4 : Hypothesis 4  
The Influence of Organizational Culture (X2) with 
Employee Job Satisfaction (Z) as an intervening variable  
H5 : Hypothesis 5 
Influence with Employee Job Satisfaction 

 
 

 

 



42 
 

 
(Z) as an intervening variable with 
Employee Performance (Y) 

 

II. RESEARCH METHODS  
This research is research quantitative to analyze 

the effect of leadership style and organizational culture on 

employee performance through employee job satisfaction 

as an intervening variable. The data used is primary data 

with data collection techniques carried out by 

questionnaires distributed to the sample size research of 34 

employee respondents from the leadership of PG 

Gempolkrep-PTPN X. The method used in this research is 

Structural Equation Modeling-Partial Least Square (SEM-

PLS). Data rocessing is done using smartPLS software  
. 

III.  DISCUSSION  
The data analysis technique used in this study uses the 
Partial Least Square method. This method is carried out with 
the stages of making a path diagram, convert diagram track 
becomes structural equations and measurement equations, 
then estimate parameters using SmartPLS software. Then the 
next step is to evaluate the model by looking at the 
evaluation of the outer model and inner model. Then analyze 
and interpret the structural model and measure and test the 
fit of the model as a whole using the criteria of Goodness of 
Fit. 

 

Outer Model Evaluation  
Outer Model Evaluation is done to assess model 

validity and reliability (Ghozali & Hengky, 2015: 73). There 
are three outputs produced in the outer model test, namely 
convergent validity, discriminant validity, and reliability.  

Based on the results of the validity test, of the four. 
The latent variables in this study show that all indicators of 
each variable are valid because they meet the requirements 
of Loading Factor > 0.5 and AVE > 0.5. The loading factor 
is the correlation between the indicator and the construct. 
The higher the correlation indicates that the better the level 
of validity. The AVE value of all variables is >0.5 so that all 
variables have met convergent validity parameters. 
Meanwhile, based on the reliability test results, the four 
latent variables in this study also showed that all indicators 
of each variable were reliable because they met the 
Composite reliability requirements >0.7 and Cronbach's 
alpha >0.7. This shows that each indicator is reliable and has 
accuracy, consistency, and precision in measuring its latent 
variables. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Table 1 

Validity Test  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Table 2 

Reliability Test Results  
 
 
 
 
 
 
 
 
 
 
 

 

Evaluation of The Inner Model  
Evaluation of the inner model is to test the effect of 

one latent variable on other variables, both exogenous and 
endogenous (Wiyono, 2011:212). There is two outputs in 
the inner model test, namely the coefficients R 

determination
2
 (R-square) and prediction relevance (Q2). 

Based on the R-square output, this study has a strong 
model prediction accuracy on Employee Performance and 
Job Satisfaction variables because the R-square value is > 

0.67. Meanwhile, based on the results of the Q test
2
 got 

the Q value
2
 is 0.9504 (large because 0.9504>0). This 

shows that exogenous latent variables have good model 
predictive ability, in other words exogenous latent 
variables are good (appropriate) as latent variables that 
are able to explain endogenous variables in the model 
because based on the convergent validity test shown in 
Table 1 above, it is known that all indicators in each 
declared valid as a measure of the construct so that all 
indicators are feasible or valid to use and can be used for 



43 
 

further analysis, because all of them have a convergent 
validity value above 0.5. 

 

Table 3  
R-Square Test Results  

• Leadership Style Variable (X1) significantly influence 
Employee Performance (Y)  

The path coefficient value with a positive sign is 

0.4347 and the t-statistic value is 5.0397. Because the t 

valuestatistics5.0397 > 1.96 so the decision Reject. This 

means, there is a positive and significant influence of the 

influence of Leadership Style (X1) on Employee 

Performance (Y). The resulting positive influence means 

the higher the influence of leadership style on 

performance. 
 

 

Hypothesis test  
Structural model testing is carried out to 

predict causal relationships between variables or 
hypothesis testing (Wiyono, 2011:81). The influence 
between the hypothesized variables in the study is 
said to be significant (for a significance level of 5%) 
if the conditions mark the t-statistics more from 1.96 
(Ghozali & Hengky (2015: 81). After the model 
evaluation stage was carried out and the statistical 
hypothesis test results were obtained on the 
structural model (partial test) the final model path 
diagram can be produced which is illustrated in the 
following figure.  

 
 
 
 
 
 
 
 
 

 

Picture 2  
Final Model Path Diagram After Bootstrapping 

 

This analysis was conducted to determine the 
relationship between latent variables and to conclude 
the research hypothesis is accepted or rejected by 
looking at the value of the t-statistic. The processing 
results for estimating the inner model parameters can 
be seen in the following table  

Table 4  
Output Path Coefficient Results  

 
 
 
 
 
 
 
 
 
 

 

Based on the results of the analysis shown in Table 
4, the interpretation of the results of the inner model 
hypothesis test is obtained as follows: 

 
• Organizational Culture Variable (X2) significantly 
influence Employee Performance (Y)  

The positive path coefficient value is 0.2855 and the 

t-statistic value is 3.6366. Because the t value statistics 
3.6366 > 1.96 so the decision Reject. This means, there is 

a positive and significant influence of the influence of 

Organizational Culture (X2) on Employee Performance  
(Y). The resulting positive influence means the higher the 
role of organizational culture influence on performance. 

 

• Leadership Style Variable (X1) has a significant 
effect on Job Satisfaction (Z)  

The positive path coefficient value is 0.3999 and the 

t-statistic value is 4.0126. Because the t value statistics 

4.0126 > 1.96 so the decision Reject. This means, there is 

a positive and significant influence of the influence of 

Leadership Style (X1) on Job Satisfaction (Z). The 

resulting positive influence means the higher the role of 

leadership style influence on job satisfaction. 

 
• Organizational Culture Variable (X2) has a 
significant effect on Job Satisfaction (Z)  

The positive path coefficient value is 0.5697 and the 

t-statistic value is 7.2827. Because the t value statistics 

7.2827 > 1.96 so the decision Reject. This means, there is 

a positive and significant influence of the influence of 

Organizational Culture (X2) on Job Satisfaction (Z). The 

resulting positive influence means the higher the role of 

organizational culture influence on job satisfaction. 

 
• Job Satisfaction Variable (Z) has a significant 
effect on Employee Performance (Y)  

The positive path coefficient value is 0.385 and the t-

statistic value is 3.401. Because the t valuestatistics3.401 

> 1.96 so the decision Reject. This means, there is a 

positive and significant influence of the influence of Job 

Satisfaction (Z)) on Employee Performance (Y). The 

resulting positive influence means the higher the role job 

satisfaction then the performance will be higher 
 

 

IV. CONCLUSIONS  
Based on the results of the analysis and discussion that 

has been carried out by researchers, it can be concluded as 
follows:  

1. Leadership Style (X1) has a significant effect on 
Employee Performance (Y)  

Acceptance of hypothesis 1 indicates that the 
leadership style of a leader influences employee 
performance and is significant, which means that this 
study shows that the higher the perception of the 

 
 
 
 

 



44 
 

 
superior's leadership style assessment by an 
employee tends to improve his performance. 
This goes hand in hand with previous research, 
namely the research of Maramis (2013) and 
Lestari & Emma (2018) which said that style 
leadership has a significant effect on employee 
performance. Hypothesis 1 is accepted. 

 
2. Organizational Culture (X2) has a significant 

effect on performance Employee (Y)  
Acceptance of hypothesis 2 indicates that 

organizational culture exists significantly affect 
employee performance, which means that in 
this study it shows that the higher the 
perception of organizational culture by 
employees tends to improve their performance. 
This is in line with previous research, namely 
research by Maramis (2013), Trang (2013), 
Widjaja, et al (2018) and Lestari & Emma 
(2018) which say that organizational culture has 
a significant effect on employee performance. 
Hypothesis 2 is accepted. 

 

3. Leadership Style (X1) has a significant effect 
on satisfaction Work (Z)  

Acceptance of hypothesis 3 indicates that 
the leadership style of a leader influences 
satisfaction and is significant, which means that 
this study shows that the higher the perception 
of the leadership style assessment by an 
employee will increase job satisfaction and tend 
to will improve its performance. This goes hand 
in hand with previous research, namely 
Satyawati & Wayan (2018), Lestari and Emma 
(2018) and Widjaja, et al (2018) which say that 
leadership style has a positive and significant 
effect on job satisfaction. Hypothesis 3 is 
accepted. 

 
4. Organizational Culture (X2) has an effect 

significantly to Job Satisfaction (Z)  
Acceptance of hypothesis 4 indicates that 

organizational culture influences satisfaction 
and is significant, which means that this 
research indicates that the higher the perception 
of organizational culture by an employee will 
increase job satisfaction and tend to improve 
performance. This goes hand in hand with 
previous research, namely Satyawati & Wayan 
(2018), Lestari and Emma (2018) and Widjaja, 
et al (2018) which said organizational culture 
had a positive and significant effect on job 
satisfaction. Hypothesis 4 is accepted. 

 

5. Job Satisfaction (Z) as an intervening variable 
has a significant effect on Employee 
Performance (Y)  
Acceptance of hypothesis 5 indicates that 

satisfaction work employee affect employee 

performance and significant, which means in 

this study shows that the higher the 

perception of the assessment of job 
satisfaction by an employee will improve 

his performance. This is in line with 
previous research, namely Lestari and 

Emma (2018) and Widjaja, et al (2018) 
which said job satisfaction has a positive 

and significant effect on
 employee performance. 

Hypothesis 5 is accepted. 
 
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