Leadership Style, Employee Engagement, and Work Environment to Employee Performance in Manufacturing Companies

¹ Faculty of Business and Economic, Petra Christian University, Siwalankerto 121–131, Surabaya 60236, Indonesia
² STIE Mahardhika Surabaya, Jl. Wisata Menanggal No.42A, East Java, 60234, Surabaya, Indonesia.
³ Tribhuvan University, Rd, Kirtipur 44618, Kathmandu, Nepal

^* Corresponding author: zeplin@petra.ac.id

Abstract

The fast changes in global order have to be anticipated by the company’s management in order to be able to compete. This change affects the organizational system and the company’s leadership style to improve their employees’ participation. Leadership style determines the level of employees’ participation and empowers them in reaching the targets that have been determined by the management. The data retrieval is using a questionnaire from the employees of an animal feed manufacturing company. The data retrieval technique is by using all the 50 employees of the company. The data analysis of this study is using partial least square (PLS). The result of this study is to find that leadership style has a significant influence on employee engagement and work environment. Employee engagement and work environment impact significantly toward the performance of the employees. The result of the study also shows that leadership style can not directly impact the performance of the employees, because leadership style is an interaction between top management with the employees so that it needs an intermediate variable in increasing the performance of employees.