The effect of leadership on operational performance

Abstract

The high quality and productivity of employees reflect the company's success in running its production business. This research was conducted to analyze the direct influence of leadership on operational performance (product quality and productivity) and to analyze the indirect influence of leadership on operational performance (product quality and productivity) mediated by Quality Improvement (Process Control and Teamwork) at PT Pindad (Persero). This research is categorized as survey research. Sampling in this study used cluster sampling with a total sample of 110 respondents. Data collection methods using questionnaires and interviews, data analysis used is SEM-PLS with Smart PLS 3.0 software. The results of the study indicate that leadership has a positive and significant influence on operational performance. Process control and teamwork have a role in mediating the relationship between leadership and operational performance.