Predicting business performance through leadership style and job motivation

Abstract

Leadership is a character, habit, and personality that distinguishes a person in interacting with others. Leadership is also considered a norm of behavior that is used when trying to influence the behavior of others. Leadership is not always associated with behavior in the right situation, but also how other people are involved so they want to think about realizing the organization's vision and mission. This study aims to analyze the influence of leadership style on Village Credit Institution (LPD) motivation and performance. The study used a questionnaire distributed to 115 employee respondents in 32 LPD in the city of Denpasar. The results of distributing questionnaires received 100 completed questionnaires and were declared valid. Furthermore, the data collected has been analyzed using descriptive analysis and inferential analysis using Smart PLS. The analysis showed that the leadership style had a significant effect on job motivation and LPD performance. Job motivation has a significant effect on LPD performance. While the indirect influence of leadership style on LPD performance shows the important role of job motivation in improving LPD performance.