Employee competence, leadership style and employee performance: mediating role of work motivation at PT Perkebunan Nusantara IV Regional VI
Keywords:
Employee Competence, Leadership Style, Work Motivation, Employee Performance, PLS-SEMAbstract
This study examines the influence of employee competence and leadership style on employee performance through work motivation as a mediating variable at PT Perkebunan Nusantara IV Regional VI. The research is motivated by the need to enhance employee performance to achieve organizational targets in the increasingly competitive plantation industry, where competence, leadership, and motivation are key determinants of success. A quantitative survey method was applied in this study. The population consisted of 85 permanent employees, all of whom were included as respondents using a census sampling technique. Data were collected through a structured questionnaire using a five-point Likert scale. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS software. The results show that employee competence has a positive and significant effect on work motivation (β = 0.578; p < 0.001), and leadership style also significantly influences work motivation (β = 0.805; p < 0.001). Employee competence has a positive and significant effect on employee performance (β = 0.328; p = 0.002), while work motivation significantly affects employee performance (β = 0.612; p < 0.001). However, leadership style does not have a significant direct effect on employee performance (β = 0.067; p = 0.515). The model explains 64.8% of the variance in work motivation and 86.2% of the variance in employee performance. These findings indicate that work motivation plays an important mediating role in linking employee competence and leadership style with employee performance. Strengthening employee competence and implementing effective leadership practices can enhance motivation, which in turn improves employee performance at PT Perkebunan Nusantara IV Regional VI.
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